Crompton Greaves gains as foreign brokerage maintains outperform rating

Crompton Greaves rose 2.25% to Rs 195.15 at 15:14 IST on BSE on reports that a foreign brokerage has maintained outperform rating on the stock.

Meanwhile, the S&P BSE Sensex was down 51.64 points or 0.2% at 25,767.70.

On BSE, so far 5.31 lakh shares were traded in the counter as against average daily volume of 1.60 lakh shares in the past two weeks.

The stock hit a high of Rs 197.65 and a low of Rs 189.25 so far during the day. The stock had hit a 52-week high of Rs 206.30 on 26 November 2014. The stock had hit a 52-week low of Rs 152.85 on 8 September 2015.

The foreign brokerage reportedly said that important steps towards the listing of Crompton Greaves' consumer products business has already been done. The brokerage reportedly feels that the discovery of consumer products business value is a key trigger for Crompton Greaves going forward.

It may be recalled that Crompton Greaves had last week said that the High Court of judicature at Bombay on 20 November 2015, approved the scheme of demerger of the consumer products business unit of Crompton Greaves into the company's wholly owned subsidiary Crompton Greaves Consumer Electricals (CGCEL). Upon the effective implementation of the scheme, CGCEL will issue and allot one fully paid-up equity share of Rs 2 each for every one equity share of Rs 2 each held by the shareholders of Crompton Greaves as on the record date.

On consolidated basis, Crompton Greaves' net profit fell 25.1% to Rs 52.14 crore on 6.2% decline in net sales to Rs 3216.13 crore in Q2 September 2015 over Q2 September 2014.

Crompton Greaves is a global pioneering leader in the management and application of electrical energy. The company provides electrical products, systems and services for utilities, power generation, industries, and consumers.

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