Bullish on Crompton Greaves, KSK: Ambareesh Baliga

ET Now spoke to Ambareesh Baliga, VP, Karvy Stock Broking Ltd. for a fundamental check on Crompton Greaves and KSK Energy.

Crompton Greaves and KSK Energy, why do you like these two companies?

Both are in more or less power sector. One is supplier the other one is generator of power and clearly, Crompton Greaves, again looking at the latest results they were quite in line with what we were expecting.

Looking at the order book position which is still quite good I think the increase by nearly 35%. We are looking at an EPS of around Rs15 for FY11 and looking at the peers it should be quoting at around 21-22 times which actually means around Rs 325-Rs 330 for the stock.

KSK again I think mind-blowing results and we are for the next 2 years looking at CAGR of approximately around 70%-75% and with their capacity actually moving up nearly 2.5%-3% over the next 2 years I think this stock easily is a doubler, but still we are talking of levels of around Rs 220.