BUY CROMPTON GREAVES; Target Price Rs. 220 ::Kotak Securities

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CROMPGREAV

Recommendation BUY ( + )

Target Price Rs. 220

Current Price (On report dt.) Rs.184.8

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 Crompton Greaves has been experiencing moderate pick up in the domestic
power and industrial business. Overseas power business restructuring
would lead to margin expansion going ahead. Increased investments
in smart grids in Europe should benefit in the medium to long
term.
 Given the diverse nature of Crompton's business (direct consumer oriented
and B2B), company has announced demerger of its consumer business
into a separate listed entity.
 We tweak medium to long term margin estimate in our DCF analysis. In
view of upside to our revised DCF based target price we change our rating
to 'BUY' from 'ACCUMULATE' earlier with revised price target of Rs
220 (Rs 215 earlier) on company's stock.


LINK
http://www.kotaksecurities.com/pdf/pdfs/FUNDCROMPGREAV31122014093844.pdf