Crompton Greaves rallies 3% on contract win; stock up over 50% in 2014

NEW DELHI: Crompton Greaves Ltd has been in a clear uptrend so far in the year 2014, up over 50 per cent in the same period as compared to 19 per cent gain seen in the BSE Sensex.

The stock rallied 3.1 per cent in trade on Thursday after the Avantha Group Company CG (Crompton Greaves), along with the other consortium partners Fabricom and Iemants, has been selected by Van Oord, for the offshore wind project `Gemini' in the Netherlands.

"The volume of the order for the consortium is in excess of €150 million. CG's scope covers around 30 per cent of the overall contract. The project is expected to start in the second quarter of 2014, and to be completed in 2016," the company said in a filing with BSE.

Technically, the share price of Crompton Greaves corrected after witnessing highs of Rs 219.50, but the trend remain strong for the company.

"Traders should note that on the daily chart stock was trading in an upward sloping Channel. Yesterday stock found support from short term moving averages," said Mitesh Thacker of miteshthacker.com.

"Stock has also formed bullish engulfing pattern. We expect prices to continue its bullish momentum as the daily momentum indicator is in strong buy mode," he added.