Crompton Greaves Falls 38% From May High; Brokerages See Possible Pullback

Crompton Greaves Tests Support as Earnings Strength Meets Market Caution

The sharp retreat has brought the stock to a zone that technical analysts view as important, while brokerages continue to point to growth and margin gains.

A steep decline puts the ₹190–₹200 range in focus

Crompton Greaves shares have struggled to find momentum over the past two weeks. The stock fell nearly 11% after its Q2 earnings on October 16 and touched ₹192.02 on October 23, down 37.6% from its calendar-year high of ₹307.70 in May. On Thursday, it was quoted 1% lower at ₹202.10, with combined trading volume of about 6.40 lakh shares on the BSE and NSE. The Sensex, by comparison, was up 0.7% at 73,750.

Choice Broking identifies ₹190–₹200 as a multi-year horizontal support zone, with the ₹193.35 Fibonacci retracement level adding to its technical significance. It says the area has previously been associated with strong buying interest and price rebounds. The brokerage also points to a monthly RSI reading of 36.25, close to oversold territory. These indicators form the basis for its pullback view; they do not establish that a reversal has begun.

Choice Broking sees potential for a move towards ₹230 if the stock holds above the support zone. Its trading approach places a stop loss at ₹189, below that floor. For investors, the distinction matters: this is a conditional technical setup, and a sustained break below support would weaken the case for the near-term recovery described by the brokerage.

Q2 growth was strong, but the share price did not respond

The company reported profit after tax of ₹110 crore for Q2FY27, up 70% from ₹70 crore a year earlier. Revenue increased 18.4% to ₹1,932 crore, while EBITDA rose 26% to ₹172 crore. EBITDA margin expanded by 50 basis points to 8.9%.

The reported performance was supported by low single-digit price increases and double-digit growth across segments. Exports reached a quarterly high, rising 70% year on year. That combination of sales growth and margin improvement helps explain why brokerages remain positive on the company’s longer-term prospects. However, the post-results decline shows that strong reported numbers alone have not been enough to lift the stock in the near term. The supplied information does not establish a single cause for that disconnect.

Brokerage targets are well above the technical rebound level

Motilal Oswal has retained a Buy rating with a target price of ₹300, while Elara Research has also kept its Buy call, with a target of ₹325. Both targets are materially higher than Choice Broking’s ₹230 technical pullback level. The figures reflect different brokerage assessments and should not be treated as guaranteed outcomes or as directly comparable trading signals.

The gap between the current price, the technical level and the brokerage targets highlights two separate questions for investors: whether the stock can stabilise after its decline, and whether the company can sustain the growth and margin performance that underpins the longer-term positive view. The Q2 figures provide evidence of recent operating improvement, but the supplied information does not include enough detail to determine how durable those gains will be.

Key Highlights

• Crompton Greaves touched ₹192.02 on October 23, down 37.6% from its May high of ₹307.70.
• Choice Broking sees ₹190–₹200 as a key support zone and a possible recovery towards ₹230 if it holds.
• The brokerage’s technical setup uses a stop loss at ₹189 and cites a monthly RSI of 36.25.
• Q2FY27 revenue rose 18.4% to ₹1,932 crore and profit after tax increased 70% to ₹110 crore.
• EBITDA grew 26% to ₹172 crore, with margin expanding by 50 basis points to 8.9%.
• Motilal Oswal and Elara Research retain Buy ratings, with targets of ₹300 and ₹325, respectively.

Investor Note: The stock’s support zone and brokerage targets offer reference points, not certainty. Investors may weigh the recent earnings improvement against the sharp price decline and monitor whether the ₹190–₹200 area holds before drawing conclusions about a recovery.