Share Review Crompton Greaves : Target Price Rs.164

Crompton Greaves announced a weak set of 4Q FY 2012 results. The company
reported a 5.8 % in crease in its top line to  Rs. 3,077 cr, slightly lower than our
expectation of  Rs. 3,170 cr.

The quarter witnessed EBITDA margin contraction of 5.9%  y o y to 6.9%, in-line with the previous 3 quarters and lower than our
expectation of 8.0%.
PAT for the quarter declined by 60.1%  y o y to  Rs.100 cr ( Rs. 251 cr), against our expectation of  Rs.150 cr.

At the CMP of  Rs.106, the stock is trading at 9.7x and 9.0x on our FY 2013E and FY 2014E earnings estimates,
respectively.

Currently, we maintain our Buy view on the stock with a target price of  Rs.164.

by Angel Broking,  6th Floor, Ackruti Star Central Road,MIDC,  Andheri (E) , Mumbai-93  
Main : (91-22) 3935 7600 Extn : 6956 Website : www.angelbroking.com
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