CMP: 137

Crompton Greaves Ltd. manufactures, distributes, installs and services electrical and allied equipment such as transformers, reactors, switchgear control equipment & accessories, industrial motors, fractional horse power motors and pumps. The Company also manufactures railway & electronic equipment, communication systems, computers, software, lighting equipment and other items.

Crompton Greaves is a good mid-cap bet well on its way to become a large cap. Its currently trading at a P/E of 14 with dividend yields of less than 2% in the last 12 months. Minimal liability and good cash & cash equivalents. Revenues have risen from 3367 Crores to 5951 Crores in the last 5 years. Profits have risen from 192 Crores to 694 Crores in the last 5 years. NPM has risen from less than 6% to almost 12% over 5 years. Stock has fallen over 300 to less than 150 for dip in profits by 20% in FY12. Its currently undervalued and provides more value to investors at current levels. Buy and hold for long term gains.