Crompton Greaves continued its volatile run on Thursday amid modest volumes of 52,000 shares so far.
The scrip jumped 4% to Rs 60.50 on BSE in mid-morning trades.
Volatility has been marking the counter of late. The scrip had rallied 26.8% to Rs 62.15 on 27 February 2003 from a low of Rs 49 on 14 February 2003. However, on 28 February 2003, the scrip shed 8% to Rs 57.10. The next trading session (3 March 2003), it surged 8.4% to Rs 61.95 . Then, on 4 March 2003, it slumped again, by 6.5% to Rs 57.90. Over the last two trading sessions, it is on the rise again.
According to dealers the stock is witnessing buying interest from some private domestic mutual funds.
Crompton Greaves is a leading manufacturer of electrical equipment for the power and industrial sector.
The company's financial performance has improved considerably in the current year.
For Q3 ended 31 December 2003, Crompton registered a 10% rise in revenues to Rs 396.10 cr and a 57% surge in net profit to Rs 3.44 crore. However, the rise in Q3 net profit materialised as a result of lower interest costs and higher other income. The company registered a fall in OPM due to higher raw material cost and other expenditure.
Last month, Crompton Greaves issued a confirmation that it was launching Voice Over Internet Protocol solutions based on the Coral Range of IBXs (integrated business exchanges) in partnership with Tadiran Telecom Business Systems of Israel. The company then said that this arrangement was in the normal process of furthering the business of the company.
The clarification by Crompton Greaves came in the wake of media reports that the company had launched VoIP solutions in partnership with the Israeli company.
At the current Rs 60.50, the Crompton Greaves scrip trades at a PE multiple of 31.8 based on its nine month annualised EPS of Rs 1.9.
BSE code: 500093
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