Religare's research report on Crompton Greaves
CRG’s Q4FY16 results were ahead of estimates (adj. standalone PAT at Rs 932mn) on account of a better-than-expected performance in the standalone entity. Importantly, EBIT margins in the industrial segment increased 220bps YoY to 12.6%, which management attributed to increased efficiency. Management expects to execute the deal with First Reserve by Oct’16, while the power systems business in the UK and US is likely to be closed over the same period.
We maintain BUY with a Mar’17 TP of Rs 80 (33% upside). Further upsides can accrue from the sale of ZIV.
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