Crompton Greaves drops on earnings worries
Reuters Market Eye - Shares in Crompton Greaves Ltd (CROM.NS) drop as much as 11 percent after the power equipment makers said on Friday net profit dropped 64 percent in the July-September quarter.
Citigroup downgrades the stock to 'neutral' from 'buy' saying earnings were lower than expected due to losses related to the ongoing transfer of production from Belgium to Hungary, and lower margins in its consumer business.
Citigroup also cuts the target price to 129 rupees from 152 rupees, saying Crompton Greaves' cut in fiscal 2013 guidance hinted at a "bumpy" couple of quarters ahead.
"We now believe margin recovery will likely take longer than previously expected and that CG will remain range bound unless management starts delivering on its stated targets," Citigroup says in a note dated on Monday.
Crompton Greaves shares down 8.5 percent at 112.35 rupees as of 10:10 a.m.
- Tweet this
- Share this
- Digg this
- Special Report: Why Madrid's poor fear Goldman Sachs and Blackstone
- UPDATE 6-Doctor with Ebola in NY hospital, nurse declared virus-free
- Gold sales jump about 20 pct for Diwali - trade body
- UPDATE 3-Ford's lower profit beats estimates; sales down on F-150 launch
- Three major nations absent as China launches W.Bank rival in Asia
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article