Till 10:47 am, around 7.64 million shares changed hands and there were pending buy orders for 43,054 shares on the NSE. The stock opened at Rs 129 and hit a low of Rs 125 so far.
Crompton Greaves demerged consumer business, CGCE, as a separate entity. Those holding one equity share of Crompton Greaves on the record date got one equity share of CGCE.
Religare Institutional Research expects the market for various product lines to grow at 8-12% over FY16-FY18. While expect market share gains for CGCE, and believe the same will be gradual on account of high competitive intensity in most of the product lines.
Based on the limited data available for the new entity and with no management guidance yet, we estimate a worst-case sales/PAT CAGR of 10-15% for the company over FY16-FY18. Margins are likely to improve slowly but steadily over FY16-FY18, the brokerage house said in a note.
In the base case, we would be buyers in the stock till it hits Rs 120, from a one-year perspective. Beyond that, we believe the one-year returns are likely to be modest, it added.