Crompton Greaves in volatile mood

Crompton Greaves is pretty volatile today. The stock hit a new 52-week low today in the morning trades at Rs.152.85 and it soon recovered from that level. It is now at Rs.158, up almost 2% and its intra day high.

Apart from value buyers coming in at the lower end, the stock must also be reacting to the news that it has got a 3-year contract from French distribution network operator - Electricite Reseau Distribution France (ERDF). This French company manages 95% of the electricity distribution network in France and the contract with Crompton is to provide maintenance and repair services to 4,500 high power transformers. These transformers of ERDF, a subsidiary of EDF, are credited with supplying energy to 35 million households in France.