Crompton Greaves has target of Rs 180: Aashish Tater

Crompton Greaves has target of Rs 180, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "It was January 2011 when we downgraded Crompton Greaves around at Rs 250 odd mark where we felt that the worst is about to come for this particular stock and after two years of consolidation and giving you a 50 percent return on downside, we feel the stock has bottomed out around at Rs 107 odd mark."
He further added, "The confirmation came with that W being formed, the quant trades that we actually follow and has done exceptionally very well for us for identifying sectors which could be in flavour like PSU banks that we recommended recently and after that real estate sector."
"We were the few bullish people way ahead of the Street and now we feel this is one space where lot of money can be made from next six to eight months perspective. There are couple of catches from fundamental aspect that we feel would go very well for companies like Crompton Greaves."
"The company has actually gone for just in time manufacturing setup in its Goa plant, which will result in cost saving and also for its low voltage vehicle motor rotator there will be an additional earning for the company. But what we are focusing on is the next year earnings where we feel the margins are going to improve substantially from current levels and the company would report a PAT of over Rs 700 crore on consolidated basis."
"If you see on standalone there is no problem with the company. The company reported a PAT of Rs 550 last year and even for this year they will do somewhere around Rs 500 crore odd. It is the consolidated front, the global front where the problems have actually kept in, but now with even global outlook getting better and margins likely to improve from current levels, we feel the W on technical side and the fundamental both are going very well for the stock."
"We feel the stock would go and stabilize around Rs 155 odd mark, but we feel a higher target of Rs 180 is likely possibility in next 15 months perspective. But Rs 155 is a target that we feel one should definitely book out partially on this particular stock." Disclosure: I have no personal holdings but it is safe to assume that above stock has been discussed with clients.