Equal weight on Crompton Greaves with a target price slashed to Rs 61 for 12 months: Morgan Stanley

Morgan Stanley maintains Equal Weight on Crompton Greaves and has slashed its 12-month target price to Rs 61 from Rs 202 earlier. Focus now shift on core earnings as bulk of the corporate action is now done, said the investment bank.

India's power sector reform is positive but near-term visibility is low. The stock trades at 18.7x F17 PE, with limited room for expansion. The current order book renders growth outlook uninspiring and margins looks uncertain, added the MS note.