Crompton Greaves down 3% on weak Q4; ICICI Sec says 'sell'

Moneycontrol Bureau

Crompton Greaves shares were down 3 percent to Rs 93.50 on weak fourth quarter numbers reported post-market hours Friday.

Brokerage house ICICI Securities has downgraded its rating on the stock to 'sell' with a price target of Rs 76.

"Key reasons for downgrade are: i) continued weakness in the overseas power segment margins as the situation post restructuring has not improved and no guidance on FY14E margin further raises concern on outlook, ii) muted domestic power segment topline as well as margins given weak order wins and higher proportion of project-related orders, and iii) sluggishness in consumer segment margins. We believe that the low-margin environment will linger in the near term, as the issues are more structural in nature," the ICICI Securities note said.

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