Buy Crompton Greaves, target of Rs. 268: India Infoline

Mumbai: India Infoline is bullish on Crompton Greaves and has recommended buy rating on the stock with a target of Rs. 268. According to the brokerage, the stock has rallied smartly from the recent low of Rs. 224 in to the present levels. On the daily charts, it has formed a pattern of a higher bottom. It is considered as the initial sign of a bottoming out process in the short term.

Crompton Greaves is an India-based company engaged in designing, manufacturing and marketing electrical products and services related to power generation, transmission and distribution, besides executing turnkey projects. The company operates in four segments: Power systems, consumer products, industrial systems and others. Power systems segment includes transformer, switchgear and turnkey projects. Consumer products segment includes fans, luminaires, light sources and pumps. Industrial systems segments include electric motors and alternators and drives.

India Infoline says that the daily RSI is already in strong buy mode, indicating that the prices are set to rally from the current levels. Any move past the levels of Rs. 280, could see the stock attempting the levels of Rs. 300 in the short-term. With the recommended target price of Rs. 268, if the stock is bought at Monday's closing price of Rs. 263.10, the percentage of gain would be 1.82 percent.