Street View: India's Crompton Greaves valuations to slide on leadership change

ICICI Securities

26/04/2023 08:00

** Shares of Crompton Greaves Consumer Electricals Ltd
 CROP.NS  fall as much as 3.22% to 251.10 rupees, their lowest
since Sept 11, 2020
    ** Stock down nearly 12% on Tuesday after the consumer
electrical co appointed new managing director and CEO
 urn:newsml:reuters.com:*:nL4N36S10T
    ** Relative strength index of the stock is 22, suggesting
that it may be overbought
    
    CONCERNS LINGER OVER MANAGEMENT CHANGE
    ** ICICI Securities ("buy", PT of 325 rupees) says exit by
private-equity investors as well as senior management raise
concerns over continuation of business stratey, may lead to
lower valuation multiples
    ** JPMorgan ("neutral", PT of 265 rupees) says unexpected
leadership changes may add to stock volatility
    ** Antique Stock Broking ("buy", PT of 315 rupees) says
recent leadership changes led to near-term uncertain business
environment
    ** Centrum Broking ("buy", PT of 305 rupees) sees fall in
valuations due to rising uncertainty amid leadership changes
    ** Systematix Institutional Equities ("hold", PT of 300
rupees) expects leadership instability to weigh on the co's
growth, especially amid rising competitive intensity
    
    

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))