Company Details

As one of the world`s leading engineering corporations, CG provides end-to-end solutions, helping its

customers use electrical power effectively and increase industrial productivity with sustainability. CG was

established in 1937 in India; and, since then the Company has been a pioneer and has retained its leadership

position in the management and application of electrical energy.

Our unique and diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection &

control gear, project engineering, HT and LT motors, drives, lighting, fans, pumps and consumer appliances

and turnkey solutions in all these areas; thus enhancing the many aspects of industrial and personal life. This

portfolio has been structured into 3 SBUs - Power Systems, Industrial Systems and Consumer Products. For

details please refer to the panel on the right.

Since 2005, CG has embarked upon an ambitious globalization strategy, growing both organically and

inorganically, drawing into its fold leading international companies such as Pauwels, Ganz, Microsol,

Sonomatra, MSE and PTS. Consequent to this globalization, CG now enjoys manufacturing bases in Belgium,

Canada, Hungary, Indonesia, Ireland, France, UK and US, in addition to more than twenty manufacturing

locations in India, employing more than 8000 employees worldwide with diverse nationalities and cultures. A

worldwide marketing network of more than 150 representatives spans the globe, offering the entire range of

CG’s products, solutions and services.

The current market capitalization stands at Rs 10,714.23 crore. The company has reported a consolidated

sales of Rs 3,333.21 crore and a Net Profit of Rs 272.78 crore for the quarter ended Dec 2014.

Category No. of Shares Percentage

Promoters 215,451,070 34.38

NBFC and Mutual Funds 153,702,217 24.52

Foreign Institutions 93,248,468 14.88

Other Companies 60,233,463 9.61

General Public 57,202,337 9.13

Financial Institutions 40,019,100 6.39

Foreign - OCB 3,639,833 0.58

Foreign - NRI 2,268,002 0.36

Foreign Industries 2,808 0.00

Market Cap (Rs Cr) – 10902.25

Company P/E – 14.10

Industry P/E – 44.52

Book Value (Rs) – 53.55

Dividend (%) – 60%

EPS (TTM) – 12.34

Dividend Yield (%) – 0.69%

Face Value (Rs) - 2

Share Holding Pattern Financial Details

Industry Details

Analysts forecast the Electrical Equipment market in India to grow at a CAGR of 13.38 percent over the period

2013-2018. One of the key factors contributing to this market growth is the growth in the Power industry

in India. The Electrical Equipment market in India has also been witnessing upgradation of technology used in

electrical equipment. However, the lack of adequate testing facilities of electric equipment could pose a

challenge to the growth of this market.

The contribution of Indian Electronics and Electrical industry to the country’s GDP has been quite substantial

and the industry offers varied opportunities for manufacturing. Electric equipment industry contributes over 2

per cent of GDP which is expected to rise to around 12 per cent in 2013. A study conducted by Frost &

Sullivan, reveals that consumption of electrical equipment is estimated to go up from over $ 28 billion now to $

363 billion in the coming decade.

Industry experts believe that during 2010-2015, the Indian electrical equipment manufacturing will grow at 5.5

times the growth rate of global electronic equipment production.

Growth in exports have also assisted the growth of some sectors like transformers, switchgear, cables,

capacitors, energy meters, transmission line towers and conductors. in the last year of 11th plan, about 15,000

mw of addition to power generation is expected to be commissioned and most of the transmission and sub-

station projects at 400 kv and below are likely to be completed despite the fact that most of the high voltage

direct current (hvdc) and 765 kv projects are likely to spill-over to the 12th plan period. All the above indicators

signal a prosperous prospect for the electrical & electronic industry in India.

Balance Sheet

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 125.35 128.30 128.30 128.30 128.30

Equity Share Capital 125.35 128.30 128.30 128.30 128.30

Reserves 3,230.72 2,928.55 2,572.58 2,161.51 1,622.00

Networth 3,356.07 3,056.85 2,700.88 2,289.81 1,750.30

Secured Loans 29.99 12.93 0.20 8.23 13.82

Unsecured Loans 0.54 0.75 2.06 5.17 12.96

Total Debt 30.53 13.68 2.26 13.40 26.78

Total Liabilities 3,386.60 3,070.53 2,703.14 2,303.21 1,777.08

Application Of Funds

Gross Block 1,521.55 1,395.37 1,310.32 1,604.18 1,171.40

Less: Revaluation Reserves 0.00 0.00 0.00 14.27 14.42

Less: Accum. Depreciation 766.65 734.88 714.16 728.88 637.59

Net Block 754.90 660.49 596.16 861.03 519.39

Capital Work in Progress 67.73 114.77 79.32 47.69 33.03

Investments 826.34 1,055.04 1,052.50 781.64 688.06

Inventories 557.78 548.50 449.60 405.72 303.53

Sundry Debtors 1,907.92 1,840.62 1,735.62 1,510.18 1,212.79

Cash and Bank Balance 442.80 288.79 320.10 124.22 112.43

Total Current Assets 2,908.50 2,677.91 2,505.32 2,040.12 1,628.75

Loans and Advances 1,028.98 761.41 337.19 587.55 402.31

Fixed Deposits 0.00 0.00 0.00 26.67 436.07

Total CA, Loans & Advances 3,937.48 3,439.32 2,842.51 2,654.34 2,467.13

Current Liabilities 2,027.64 2,013.13 1,717.06 1,634.38 1,534.63

Provisions 172.21 185.96 150.29 407.11 395.90

Total CL & Provisions 2,199.85 2,199.09 1,867.35 2,041.49 1,930.53

Net Current Assets 1,737.63 1,240.23 975.16 612.85 536.60

Total Assets 3,386.60 3,070.53 2,703.14 2,303.21 1,777.08

Contingent Liabilities 1,676.17 1,422.59 326.08 278.74 362.56

Book Value (Rs) 53.55 47.65 42.10 35.70 27.28

Profit and Loss Account

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Income

Sales Turnover 7,489.57 7,135.30 6,485.38 6,411.18 5,627.68

Excise Duty 0.00 0.00 0.00 325.05 232.09

Net Sales 7,489.57 7,135.30 6,485.38 6,086.13 5,395.59

Other Income 175.72 98.68 74.39 95.68 124.18

Stock Adjustments 12.77 42.99 7.39 56.84 49.29

Total Income 7,678.06 7,276.97 6,567.16 6,238.65 5,569.06

Expenditure

Raw Materials 5,438.16 5,420.82 4,771.88 4,083.39 3,534.44

Power & Fuel Cost 49.32 47.30 42.66 35.90 31.02

Employee Cost 476.36 411.17 363.59 310.17 255.79

Other Manufacturing Expenses 219.31 0.00 0.00 245.26 200.37

Selling and Admin Expenses 0.00 0.00 0.00 500.68 508.56

Miscellaneous Expenses 653.35 704.39 593.96 40.86 56.38

Total Expenses 6,836.50 6,583.68 5,772.09 5,210.06 4,586.52

Operating Profit 665.84 594.61 720.68 932.91 858.36

PBDIT 841.56 693.29 795.07 1,028.59 982.54

Interest 39.76 25.41 27.66 20.69 20.00

PBDT 801.80 667.88 767.41 1,007.90 962.54

Depreciation 89.35 71.86 90.71 80.89 51.90

Profit Before Tax 712.45 596.02 676.70 927.01 910.64

PBT (Post Extra-ord Items) 712.45 596.02 676.70 927.01 910.64

Tax 191.36 150.18 171.84 232.68 293.30

Reported Net Profit 521.09 445.84 504.86 694.33 617.34

Total Value Addition 1,398.34 1,162.86 1,000.21 1,126.67 1,052.08

Equity Dividend 75.33 76.98 89.81 141.13 80.65

Corporate Dividend Tax 12.80 12.69 14.57 23.29 13.70

Per share data (annualised)

Shares in issue (lakhs) 6,267.46 6,414.92 6,414.92 6,414.92 6,414.92

Earning Per Share (Rs) 8.31 6.95 7.87 10.82 9.62

Equity Dividend (%) 60.00 60.00 70.00 110.00 110.00

Dividend and Bonus History

Index and Company Price Movement Comparison

Company Forecast

Symbol Value Action

RSI(14) 62.903 Buy

STOCH(9,6) 69.732 Buy

STOCHRSI(14) 100.000 Overbought

MACD(12,26) 0.490 Buy

ADX(14) 16.107 Neutral

Williams %R 0.000 Overbought

CCI(14) 115.2746 Buy

ATR(14) 1.0536 High Volatility

Highs/Lows(14) 1.4536 Buy

Ultimate Oscillator 62.761 Buy

ROC 1.453 Buy

Bull/Bear Power(13) 2.3380 Buy

Technical Indicators

PBIT – 7.52 v/s 7.22

RoCE – 22.21 v/s 20.23

RoE – 15.56 v/s 20.29

Net Profit Margin – 6.79 v/s 6.16

Return on net worth – 15.52 v/s 14.58

D/ E Ratio – 0.01 v/s 0.00

Interest Cover – 18.92 v/s 24.46

Current Ratio – 1.74 v/s 1.55

Reserves – 3230.07 cr v/s 3056.85 cr

PAT – 521.09 cr v/s 445.84 cr

Total assets – 3386.60 cr v/s 3070.55 cr

Net sales – 7489.57 cr v/s 7135.30 cr

Book Value – 53.55 v/s 47.65

Days BSE NSE

30 181.54 181.65

50 181.09 181.17

150 192.99 193.06

200 192.19 192.27

Important Ratios Simple Moving Average

Recommendations

Buy Crompton Greaves Ltd. at current or

lower market levels

Reasons for the recommendations are :

Healthy financial position of the company with attractive ratios.

Pending order books ensure future revenues.

Best in the industry products and efficient distribution network.

Growth in real estate sector further add to the revenue.

Under performance of the company in the current market rally.

Attractive price and difference between company and industry P/E ratio.

Increase in YoY margins and performance of the company.