Crompton Greaves turns volatile after tie up with European firm

Crompton Greaves was flat at Rs 168.05 at 9:27 IST on BSE after the company said it entered into a long term alliance with a European player in consumer appliances.

The announcement was made after market hours yesterday, 23 June 2015.

Meanwhile, the BSE Sensex was down 2.67 points, or 0.01%, to 27,801.70.

On BSE, so far 19,000 shares were traded in the counter, compared with an average volume of 3.43 lakh shares in the past one quarter.

Trading in the counter was volatile. The stock rose 2.17% at the day's high of Rs 171.70 so far during the day. The stock fell 0.39% at the day's low of Rs 167.40 so far during the day.

The stock hit a 52-week high of Rs 231 on 10 September 2014. The stock hit a 52-week low of Rs 153.10 on 9 February 2015.

The stock had underperformed the market over the past one month till 23 June 2015, sliding 0.86% compared with 0.55% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 2.53% as against Sensex's 1.38% fall.

The large-cap company has an equity capital of Rs 125.35 crore. Face value per share is Rs 2.

Crompton Greaves (CG) announced that it has entered into a long term alliance with SOGO, a European player in consumer appliances. The Spanish consumer appliances company is engaged in the marketing and worldwide sales of kitchen and home appliances and personal care products under the brand name of SOGO since 1981. This alliance enables Crompton to offer a new range of high performance kitchen appliances to the Indian consumer.

Through this alliance Crompton will leverage SOGO's robust cost effective supply chain to introduce the new range of products through its well established distribution network with a target of reaching 9000 premium retail counters. The high volume procurement projected will enable both Crompton and SOGO to achieve higher competitiveness.

SOGO will provide market intelligence and access to its international design horses to develop unique products for the Indian consumer, CG said in a statement.

Crompton Greaves reported net loss of Rs 198.55 crore in Q4 March 2015 as against net profit of Rs 63.82 crore in Q4 March 2014. Net sales rose 0.05% to Rs 3808.07 crore in Q4 March 2015 over Q4 March 2014.

Crompton Greaves is a global pioneering leader in the management and application of electrical energy. It provides electrical products, systems and services for utilities, power generation, industries, and consumers. The company is organised into four business groups: power, industrial, automation, and consumer.

Powered by Capital Market - Live News