Crompton Greaves - Is the worst over?

Crompton Greaves having touched a low of Rs. 145 couple of days back, seems to have bottomed out and now seen moving up. Thanks to Board meeting of the company convened on 19th February, to consider revising ratio of shares to be offered to the shareholders of the company, for hiving off Consumer Product Division (CPD) into a separate company.

As stated by us couple of days back, we now expect 1 share of CPD to be given free, for every 1 share held in the company, against earlier ratio of 3 shares of CPD for 4 shares held in the company. This translates into an extra gain of close to Rs 25 per share.

On this expectation, share may be able to move to a level of Rs. 180 in this series, with expectations of Rs. 200 in next couple of months.