Goldman Sachs has upgraded Crompton Greaves to "buy" from "neutral" and raised its target price to Rs 155 from Rs 120, citing better prospects of domestic orders and margins.
The investment bank said Crompton would benefit from the balance sheet restructuring of state electricity boards and attractive valuations. Goldman added that the company would benefit from power sector reforms as over 25 per cent of its revenues are driven by domestic power transmission and distribution capex.
Shares in Crompton Greaves were down 0.5 per cent at Rs 127.35.
Copyright Thomson Reuters 2012
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