Crompton Greaves a very attractive bet for now: Sharyans Wealth Management

Lancelot D'cunha, CEO, Sharyans Wealth Management in an interview with ET Now talks about Nifty trends.

You have Crompton Greaves as your pick. Could you just highlight as to why you like them and some target prices there?

I like Crompton Greaves because I see visibility in their earnings growth for the next two to three years. At 20% they would grow. It is quoting at about 17 times its forward earnings and this has actually had a substantial discount to the global peers. It is about 27% discount to Siemens PE as well as to ABB which is about 30% discount to ABB PE and I see Crompton being a global multinational over a period of time because of significant portion of its business comes from its European subsidiaries.

I see this valuation gap narrowing. Crompton also will be a major beneficiary in the orders that will be released by Power Grid Corporation in the 765 KVA range. So I see this as a very attractive investment at this point of time with a one-year target price of 317.