Why Crompton Greaves shares crashed over 28 per cent today

By: |
Updated: February 3, 2016 4:55:07 PM

Crompton Greaves shares hit their fresh 52-week low of Rs 119.55 and fell over 28 per cent after the company posted a consolidated net loss of Rs 107.03 crore in the quarter ended on December 31, 2015.

Crompton Greaves sharesCrompton Greaves posted a consolidated net loss of Rs 107.03 crore in the quarter ended on December 31, 2015. (Photo: PTI)

Crompton Greaves shares hit their fresh 52-week low of Rs 119.55 and fell over 28 per cent after the company posted a consolidated net loss of Rs 107.03 crore in the quarter ended on December 31, 2015.

At 10.36 am, Crompton Greaves shares were trading 23.70 per cent down at Rs 127.50. The scrip opened at Rs 150.40 and has touched a high and low of Rs 152.80 and Rs 119.55, respectively, in trade so far. Later, the scrip settled 21.72 per cent down at Rs 130.80.

According to Reuters, Kotak Securities has a “reduce” call on the stock and has suspended its rating on the company’s stocks, calling  operating results are “very weak”. It also cited uncertainty about Crompton’s business strategy and metrics. Ambit Capital also dropped coverage on the stock citing reasons similar as Kotak.

“Operationally, the key disappointment came from an 11 per cent YoY decline in standalone power sales to Rs 5.8 billion. While management attributed this to delivery schedules, we think there is more to the decline than meets the eye; in our view, the drop in sales is more reflective of weaker demand and falling copper prices,” Religare Securities said.

So far, around 35.49 lakh shares of Crompton Greaves exchanged hands on the BSE as compared with two-week average daily volume of 1.82 lakh shares.

The promoters holding in the company stood at 34.42% while Public and Others held 65.58% and 0.14% respectively.

Last one week high and low of the scrip stood at Rs. 175.70 and Rs. 119.55 respectively. The current market cap of the company is Rs 8028.62 crore.

Total income fell to Rs 2,087.52 crore in the October-December quarter of 2015-16, from Rs 2,436.42 crore in the corresponding period last fiscal, the company said in a filing to BSE.

In a separate filing, the Avantha group company said that K N Neelkant will take over as the CEO and MD of the company with effect from February 3 as Laurent Demortier will step down from the post.

The company further said Madhav Acharya will join as member of its board as Executive Director Finance in addition to being CFO of the company, from April 1, 2016.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Agriculture, processed food exports shrink 21per cent in April-December
2Long-term bond, income funds still remain attractive: Fund managers
3Teamlease IPO subscribed 0.17 times on first day