Crompton Greaves is an India based multinational operating
in power ,consumer electronics and lighting space. CG is part of Gautham Thaper
led Avantha Group and operating many manufacturing facilities across the world
which includes Pauwels (Belgium), Gans(Hungary, Microsol (Ireland), Sonomatra
(France), MSE Power Systems (USA) , Power Technology Solutions (UK, Emotron (Sweden), QEI Inc (USA) and ZIV Group
(Spain) .In India Comapny have 22 manufacturing facilities for its various
products.
Company’s operations are broadly classified into three
divisions – Power Systems,Industrial Products and Consumer electronics.Under the
power systems division company manufacturing
Transformers,Switchgear,T&D Systems,Protection Control products
..etc.CG is one of the 10 largest Transformer manufacturers in the world. Its
industrial systems division producing Generators,Motors,Alternators..etc. Under
the consumer products division company is a reputed manufacturer of
Fans,Pumps,Lighting equipments,Home appliances..etc.During the last three years CG’s stock price crashed
substantially mainly due to three reasons.Company reported negative growth in
many verticals due to of overall
de-growth in major economies .Another
reason is the cost involved in restructuring its Belgium operations which just
concluded .In addition to this an untimely
aircraft purchase and share sale of its erstwhile managing director of the
company, Mr SM Trehan dented the image of company and its share price now
landed around its multi year low of Rs.90 from a high of Rs.458 ( stock prices
adjusted to split of FV) .I believe ,the
protest raised by institutional investors on aircraft purchase issue will help
the company to rethink about the importance of fair corporate governance and
avoid such untimely decisions in future.In the business front company is
expected to start improving from hereon and report robust growth from FY 2013-14
onwards from a loss in this FY.This is the time to accumulate CG in a phased
manner with long term view @ CMP of Rs.90 or in any dip.
Link to company website HERE
Link to company website HERE
Sir, do you think any prospect of SEBI reversing the decision of periodic call option on illiquid scrips or you expect it to continue? The volume in these scrips already fell, and even my online broker (HDFC Sec), made it call and trade, which is very inconvenient?
ReplyDeleteIf SEBI is bothered about the investors they may withdraw and if they want to prove only their side is true and no interest in protecting investors ,they may stick with their decision.I really believe the members who took this decision has not invested a single penny in stock market.
ReplyDeleteDear value pick,
ReplyDeleteRequest your views on Caplin point and Orchid chemicals & pharma.
JB Chemicals may be a better choice than Orchid at this point.
DeleteWhat's your view on Tilaknagar Ind, Orient Bell and Suzlon for 5+ years investment??
ReplyDeleteHold all
DeleteHello VP Sir,
ReplyDeleteWhich one would you prefer TV 18 or TV Today? And why?
I prefer TV today as a company ,but TV 18 having the popular business channel and hence they can influence share price and investors preferences better than TV today.
DeleteDear sir,
ReplyDeleteI had invested in Eimco Elecon, now the share is moved to illiquid category, daily no trading is happening, i really dont know how to sell, or i need your advice whether to hold, if holding when i can sell?
Sathishkumar
Dear Satish
DeleteI too in a dilemma ,not able to invest or recommend any good mid/small/micro cap only because of the inclusion in this category or chance to be included in next revision.
Hi Sir,
ReplyDeleteDo you like Selan Exploration?
One of the good companies from this sector ,but no guarantee whether it will be classified as illiquid next time.
DeleteDear VP,
ReplyDeleteWhat are your thoughts on Bajaj electricals. should we buy this stock at current level....for 2 year period
Not a bad stock
DeleteDear Sir, i have 500 share of Bank of India @ 325. After my purchased, this stock comeing down. So would you like to advice me on this stock. I can hold it for three years too.
ReplyDeleteWith regard,
Dinesh Devgan
Ghaziabad (U.P.)
Tracking only Yes Bank and ING Vysya from banking sector
DeleteBajaj Elec:- High 234 ,Low 161.
ReplyDeleteSo i think when it cross 180/-, that time bye this stock in three parts.
Sir, how would you rate the corporate governance of Gautam Thapar group? I am invested in some other companies of the group, so would like to know.
ReplyDeleteAverage
DeleteDear VP Sir,
ReplyDeleteWhat is your view on Glodyne Technoserve, Opto Circuits & Delta Corp for 3+ years investment?
Prefer Opto circuit among these three and that itself only for very high risk takers.
DeleteDear VP, Kindly share your view about Dishman Pharma..
ReplyDeleteI Prefer Shasun over Dishman
DeleteHi Sir,
ReplyDeleteCan we accumulate Ion Exchange at the current price and declines?
Business is expected to improve going forward but not sure whether it will classified as illiquid in next revision
DeleteSir, is the next revision expected every month?
DeleteNo ,I think it will happen in every quarter.
DeleteSir My Query abt Rain Comm and Finolex Inds..
ReplyDeleteAman..
Not tracking rain Com,positive on Finolex Ind
DeleteAs all consumer sector stocks are 52 weeks low CG is not exception,my dad work in company he told mgmt view regarding overseas market becoming very broad these days though improvements in margin may not come in this quarter but definitely by year end they will be right on track,for accumulation purpose result day is best one when it falls to 8-10 % & recovers with analyst rating coming afterwards.,after all its F&O stock :)
ReplyDeleteCan we not buy then if it is considered as illiquid stock? I read your post on illiquid classification of stocks by SEBI but did not understand is completely.
ReplyDeletePrice discovery not happening in a smooth way and investor participation is very low at present . Situation may improve when more and more investors become familiar with this system.
DeleteDear VP, kindly share your view on HIL(:Hyderabad Industries Ltd)
ReplyDeleteHIL may be a market performer.
DeleteDear Sir, which one is better at current valuations & market scenario given fact that lead prices in down trend.
ReplyDelete1. Amara Raja Batteries
or
2. Exide Industries
Thanks,
Mayur
Dear VP Sir,
DeleteSuggest 3 stocks with strong growth potential n bussiness model in which can be invested for next 10 year for multi returns?
I prefer Amara Raja over Exide from this sector
DeleteDear Sir,
DeleteI have shares of Amara Raja Batteries purchased @ 222 few months back.
So, is it good to hold for some more time or sell?
Or do you suggest adding more?
I am looking for making some profit (10-20% more from current levels) in next 1-2 months.
Please suggest.
Regards,
Narendra