Religare's research report on Crompton GreaveCRG’s board has accepted an offer from First Reserve International for the sale of its loss-making overseas power business at an EV of € 115mn. While the deal includes sale of CRG’s international power products, the company is in process of winding down its international power systems business – closure of which is the key. Management believes the deal will enable CRG to reduce debt and focus on its faster growing Indian business. BUY; Mar’17 TP Rs 170 (consumer business Rs 115; power & industrial business Rs 55).Our FY17 PAT estimates at Rs 1.9bn are meaningfully lower than the Rs 3.2bn guided by management as we expect some losses to accrue from the systems business wind-down. Maintain BUY with a Mar’17 TP of Rs 170. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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