Goldman reiterates 'buy' on Crompton Greaves

Goldman Sachs retained its "buy" rating on Crompton Greaves Ltd and added the stock to its Asia-Pacific Conviction List.

Goldman cited a favorable risk-reward ratio after the Indian power equipment maker completed the restructuring of its Belgium plant in the quarter ended in December. The bank added Crompton Greaves' valuations are trading at a historical trough, calling it "unjustified."

Goldman's report came after Morgan Stanley added Crompton Greaves, among other stocks, to its India model portfolio in a report on Friday.

However, Goldman has cut Crompton's sum-of-the-parts target price to Rs 127 from Rs 144 to factor in a slower improvement in the overseas margins after the December quarter results.

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