Stock Market

See 10-12% growth in FY18; rev to touch Rs 7200 cr: Crompton

Crompton Greaves ’ move to restructure its business has proved positive for the company with stock gaining six percent in trade on Monday. The demerged entity, minus the consumer business, will trade from Tuesday.

In an interview to CNBC-TV18, Madhav Acharya, CFO of the company says that the record date for demerger is March 16 and the shareholders will get one share of consumer business for every share in Crompton Greaves.

Acharya further adds that the consumer business might be listed in April.

Going forward, he expects a growth of 10-12 percent in FY18 with revenue touching Rs 7,200 crore. Strong order book as well as visible growth in industrial system business in last five-six months will aid growth, Acharya says.

The company’s current order book for India stands at Rs 4,000 crore.

Another positive for the company is that it will become completely debt-free in FY17, he adds.

Dhirendra Tiwari, Head of Research at Antique Stock Broking has a buy call on the stock with a target price of Rs 223 per share. On its engineering business, Tiwari has a buy if it lists below Rs 9 a share.

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