The Hindu Business Line : Sustained buying seen in Crompton Greaves

The counter has appreciated by almost 32.60 per cent from around Rs 184 levels on September 1 to its current levels of Rs 244 on the bourses. On Monday, the stock ended 6.58 per cent higher at Rs 244.50 with around 1.29 lakh shares on the BSE. On the NSE, the stock ended at Rs 244.05 - up 6.39 per cent with around 2.55 lakh shares traded.

The counter has been witnessing sustained investor interest. According to a brokers' unconfirmed rumours, the company going for an overseas acquisition as part of its export strategy has been aiding the stock's upsurge.

Analysts maintain that there has been a turnaround in investor perception given that the restructuring exercise undertaken by the company has seen improved cash flows.

"The belief is that the worst is over and that the company's performance is on an upturn cycle. The order book and visibility are improving. Debt restructuring has brought down interest costs tremendously. Every quarter, numbers have been looking better. All the company's divisions are performing well. As of now, only a small portion needs to be restructured," said an analyst with a leading domestic brokerage.

Crompton Greaves makes a wide range of transformers, switchgears, motors, lighting products, fans and railway signalling equipment and undertakes turnkey engineering products. Its business operations are organised under four units: power systems, industrial systems, consumer products and the digital (telecom and networking) unit.

Analysts said the company's three divisions - power, industrial and consumer - are doing well. "The growth in terms of revenue and PBIT has been very good," an analyst tracking the company said.

The power systems division reportedly accounts for more than 36 per cent of the company's turnover with the least contribution said to be coming from its digital division.