Accumulate Crompton Greaves - HDFC Sec
Tuesday, September 04, 2007Crompton Greaves (CGL) is mainly concentrating in Power Systems, Industrial Systems and Consumer Products and Digital business. CGL is engaged in manufacture, distribution and sale of electrical and electronic equipment/systems.
Positive Triggers
- From FY09 onwards, international business is likely to take the lead in growth given higher margin improvement potential
- Microsol acquisition would increase CGL's strengths in the area of high-end engineering and sub-station automation capabilities. CGL has acquired three international companies. In all three cases the acquisitions did not involve large capital outlay, resulted in addition of more products and skills and helped increased production capacity.
- The Government of India (GoI) has set a goal of "Power for All" by FY2012E. Investments in infrastructure, particularly in the power generation, and transmission & distribution (T&D) segments, are estimated to be at Rs 1400 billion for T&D alone in the XIth Plan (FY07-FY12).
Other Equity Analysis
- Ratings and Target Prices of - All the Banks in In...
- ENAM Neutral on Tata Steel
- Tata Metaliks - Short Term Buy
- Buy Areva T&D - Prabudas Lilladher
- Peninsula Land to Outperform - ENAM
- Buy Reliance communications - IDBI Capital
- Buy Maruti Udyog Ltd - Motilal Oswal
- Cairn + Zee Entertainment to Underperform - Kotak ...
- Buy Jyoti Structures - HSBC
- Exit Cipla - Citi Research
