Equal Weight Crompton Greaves with a target of Rs 60: Morgan Stanley

Morgan Stanley has Equal Weight call on Crompton Greaves Ltd. with a target price of Rs 60 . The current market price of Crompton Greaves Ltd. is Rs 58.9 . Time period given by analyst is year when Crompton Greaves Ltd. price can reach defined target.
Muted order book growth and restructuring uncertainty limit upside in Crompton Greaves. Near-term earnings uncertainty stems from delay in restructuring international business. Pickup in domestic capex is positive for revenue, but recovery will be gradual Expect recovery in domestic margins, but believe risk of a positive surprise is low P/E at 17x for F18e, has limited room to expand.