Ashish Kapoor, CEO of Investshoppe is of the view that one can buy Crompton Greaves on dips.

Kapoor told CNBC-TV18, "Crompton Greaves is quite a good counter for a long term investor. It is basically manufactures power sector component like transformers, switchgears and also manufacturers industrial motors and alternators. They also have a consumer division, which manufactures fans and lighting equipment. This equipment is less capital intensive but also has less margin but going forward, it is a power sector which is going to be the real driver in its fortunes."

He further added, "The company has made two acquisitions in the past fifteen months. These acquisitions have the potential to take this company in the big league as far as power components are concerned, however in the immediate short term there is likely to be some pressure on its margins when it is trying to consolidate these operations. So to that extent it may not be a great thing in the immediate short term but, if one can extend its holding period and look at one year or eighteen months, this is going to be a very good performing stock and I would recommend the investors to extend their holding period and use any dips to buy this stock."

"In the immediate one-year target would be about Rs 275 but if one can extend the timeframe then the sky is the limit. This counter can do very well after the acquisitions and power sector is likely to do very well to get lot of investments in the coming years and this company is very well poised to take advantage of this move."

Disclosure: I don’t have any personal holding in any of the stocks we discussed but Cropton Greaves has been in our recommendation list, so lot of my associates and clients would be having a position in this stock.