Crompton Greaves may slip to Rs 160-170: Choksey

Crompton Greaves may slip to Rs 160-170, says Deven Choksey, MD, KR Choksey Securities.

Choksey told CNBC-TV18, "Particularly more concerned about Crompton Greaves and as much on Exide. Exide possibly could bounce back in the second half of the year when the OEM starts business with little bit more force. But in case of Crompton probably I think the situation is unlikely to get revived very soon. It may probably see the first signs of stabilization in the third quarter of this financial year and maybe in the fourth quarter we can start seeing slightly better business environment for them and at the same time execution. This company is basically troubled now basically on the side of A) the quality value orders which are likely to get executed in the second half of this particular financial year and till that time it happens the confidence of investors coming back into this company would be slightly I would say that people would remain slightly skeptical on this particular aspect."
He further added, "I would rather give a pass for another quarter probably see the first half getting over and in the third quarter hope to see the stability back into the working of the company and then take a further call. Maybe at the valuation level itself it cannot command that premium valuation, so I think it may probably have a scope after some bounce back from current levels to go down to a certain extent