Crompton Greaves
Price: Rs261
BUY
Target: Rs310 (Mar’11)

Avantha Power files DRHP

APIL’s stake to add Rs20 to our new TP of Rs310; maintain BUY: Avantha
Power & Infra Ltd (APIL), the 31% power generation subs, has filed DRHP with
SEBI for raising Rs12.5bn through an IPO offering. We think Crompton
Greaves’ (CG) 31.7% pre-dilution stake in APIL could add Rs13-36/share to our
TP, based on different dilution scenarios. We expect likely scenario of 25%
dilution to raise Rs12.5bn which adds Rs20 to our TP, giving new TP of Rs310

Shares of Crompton Greaves are available at Rs.77.35. Its prices are up by 0.52%. It is quite difficult to pick up stocks which will help in earning desired returns. Analyzing stocks technically and fundamentally does helps to certain extent how it is likely to perform.