Crompton Greaves shares jump 6% after CLSA upgrades stock to buy
Crompton Greaves share price target: Shares of Crompton Greaves Consumer Electricals jumped as much as over 6 per cent to Rs 316.35 apiece on the NSE in the early morning trade on Wednesday after brokerage firm CLSA upgraded the electrical equipment company to outperform from buy and raised the target price to Rs 365 from Rs 300 earlier-an upside of 21 per cent.
Crompton Greaves share price target: Shares of Crompton Greaves Consumer Electricals jumped as much as over 6 per cent to Rs 316.35 apiece on the NSE in the early morning trade on Wednesday after brokerage firm CLSA upgraded the electrical equipment company to outperform from buy and raised the target price to Rs 365 from Rs 300 earlier—an upside of 21 per cent. Crompton Greaves shares finished at Rs 308.55, up 3.52 per cent on NSE.
CLSA, in its report, said that the company has embarked on a new growth-focused strategy that could allay investors' concerns. The near-term earnings may look soft due to the lower margin; however, the robust execution should lay a platform for strong medium-term growth, the brokerage added. The company is looking to plug crucial gaps in its portfolio and increase contributions from nascent categories, it said. The analyst believes that a restructured organisational team is being put in place and believes the organisational team will bring optimum focus to each segment. Furthermore, the brokerage said that the execution of these initiatives will be crucial to a re-rating.
Here's how the stock has moved so far:
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