[TP Ri 384.15
M(ap: Rs 14,082cr
The stock price of the power equipment major gained 11 per cent on the back of heavy volumes during the fortnight ended November 6, thanks to the robust 02 results announced on October 27. The company reported the highest growth In operating profit and net profit, since the past four quarters, at 43 per cent and 47 per cent, respectively. The top line grew a strong 16 per cent to Rs 1,268.60 crore. Though the stock looks a bit stretched at 18 times estimated FY11 earnings, it is worth watching the company as It has reported stable performance even in the tough quarters of December 2008 and March 2009.
The company designs. manufactures and markets electrical products and services related to power generation. transmission and distribution. The company has three business groups: power systems (transformer and switchgears), industrial systems (electric motors), and consumer products (fans, lamps and pumps). According to Dhirendra Tiwarl of B&K Securities, Crompton being a leader in 400kv and 765 kv transformers will continue to be a key beneficiary of the growing transformer demand.
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