Amit Dalal, ED of Tata Investment Corporation is of the view that one may stay away from Crompton Greaves.
Amit Dalal, ED of Tata Investment Corporation told CNBC-TV18, "Crompton Greaves has the same problem that Tata Steel had and that is what is weighing down on its performance is its European acquisitions. So unless there is some information that we get from them regarding any change in that I think one would definitely stay away from Crompton because therein lies the biggest crux of the problem for last 4-5 quarters in Crompton."
He further added, "I would break the whole sector of engineering and capital goods into two parts. One is companies which would be supplying to the power sector and the rest of them which are supplying to any other engineering and construction activities. Where the power sector companies are concerned one would be very careful of, I just do not see any mega power expansion taking place in the next year or two, so I believe they are going to face tremendous demand growth problems."
"With the rest of the industry is concerned that is construction for buildings, construction for roads, general engineering and industrial engineering space, a lot depends on the election results. If we see anything happening over there which gives us promise, makes us feel as if 2015 will show us much higher growth numbers than 2014 or 2015 then these companies have an improved future for them. Otherwise the concerns which have been clouding their performance and their order book growth will continue for a while," Dalal said.