Re: {LONGTERMINVESTORS} CROMPTON GREAVES: Thread

[RAJESH DESAI]

Fitch revises Crompton Greaves' outlook to negative

On Mon, Jul 30, 2012 at 11:17 AM, Mihir Desai <desaim...@gmail.com> wrote:

Crompton Greaves said the ZIV Group acquisition expands the company's portfolio of power system automation and protection and creates a strong platform for it in the Smart Grid arena.

ZIV is engaged in the design, engineering, manufacturing and support of Intelligent Electrical Devices (IEDs) and automation systems for Utilities and industries. Its offerings span from Substation and Distribution Automation, to Advanced Metering Infrastructure.

ZIV, headquartered in Bilbao, Spain, is operating in more than 50 countries with key operations in Brazil (Rio), India (Bangalore), Spain (Barcelona, Bilbao, Madrid) and USA (Chicago). ZIV, created in 1993, has installed more than 1.4 million IEDs for Utilities and Industries across the world.

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CA Mihir Desai

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CA. Rajesh Desai

[RAJESH DESAI]

Crompton Greaves slips after bulk deals

Crompton Greaves fell after 0.23% equity changed hands in two bulk deals on the BSE today, 27 August 2012.

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CA. Rajesh Desai

[Rajesh Desai]

Crompton Greaves said it bagged three contracts from Power Grid Corporation of India (PGCIL) for supply of seven 500 mega volt ampere (MVA) single phase 765 kilovolt (kV) auto transformers and thirty-eight 80 mega volt ampere reactive (MVAR) and 110 MVAR single phase 765 kV reactors, valued at Rs 231.70 crore for its Thiruvelum, Kurnool, Raipur and Wardha substations.

The scope of the contracts includes design, manufacturing, factory testing, dispatch, erection, site testing, commissioning and related civil construction, at various locations in India. The products will be manufactured at Crompton Greaves' Bhopal plant and the projects are expected to be completed within 31 months, the company said in a statement.

Crompton Greaves' board will meet on Friday, 28 June 2013, to consider share buyback proposal.

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CA. Rajesh Desai

[Rajesh Desai]

Crompton Greaves (NB Insti)

·         Crompton Greaves (CGL) posted consolidated revenue of Rs31.6bn for 1QFY14, up 12.3% YoY, and 4.6%/2.7% above our/Bloomberg consensus estimates, respectively.

·         Top-line was driven by healthy growth in the international power systems segment and the consumer products segment. EBITDA fell 13.2% YoY at Rs1.4bn, on expected lines, following losses in the international power systems business.

·         As expected, the recovery in operating margin started with a 230bps QoQ expansion at 4.6% for the quarter, in line with our estimate of 4.5%. Aided by higher other income, up 84% YoY owing to treasury gains, the company reported PAT of Rs601mn,  13.8% above our estimate.

·         While CGL continued to offer healthy revenue visibility driven by  strong order book, up 6.5% YoY at Rs97.7bn, turnaround of its international power systems segment will be key valuation driver, in our view.

·         We have retained our Buy rating on the stock with a target price of Rs105 based on 12xFY15E EPS.

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CA. Rajesh Desai