Greaves Cotton
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Greaves Cotton's management is strategically positioning the company for future growth through its 'Greaves.Next' initiative, focusing on expanding into e-mobility and energy solutions. The acquisition of Ampere Vehicles and the planned IPO of Greaves Electric Mobility Limited underscore its commitment to sustainable mobility, which is expected to drive revenue growth. Management projects an EBITDA margin of 13-15%, supported by substantial investments in product development and modernization. However, the company faces execution risks related to its multi-year transformation strategy and increasing competition in the genset market. Vista's financial outlook reflects moderating revenue growth, stable margins, and a fair valuation, with a target price of approximately 157. Recent developments, including a 51% increase in EV volumes, align with Vista's expectations for organic growth rates of 16-18% in core businesses. The macro environment remains supportive, with stable demand and improving pricing power in the diversified sector. Over the next 12-24 months, key opportunities include scaling energy and mobility solutions, while watchpoints include commodity price pressures and regulatory challenges
Why We Like This Stock
- Strategic focus on e-mobility and energy solutions is expected to drive revenue growth
- Significant increase in EV volumes indicates strong market potential
- Management's commitment to maintaining margin discipline supports long-term profitability
Things To Watch Out For
- Execution risks associated with the multi-year transformation strategy could hinder progress
- Increasing competition in the genset market may pressure margins
- Commodity price pressures and regulatory challenges pose potential risks to operations
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,633 | 2,918 | 3,427 | 3,873 | 3,966 |
| Profit Before Tax (Cr.) | 61 | 71 | 154 | 137 | 150 |
| PBT Margin | 2.3% | 2.4% | 449.4% | 3.5% | 3.8% |
| Net Profit (Cr.) | 61 | -11 | 30 | 103 | 67 |
| Earnings Per Share | 12.6 | 2.3 | 4.4 | 2.6 | 2.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Greaves Cotton Limited operates engineering and mobility retail business in India, the Middle East, Africa, Southeast Asia, and internationally. It operates through Engines, Electric Mobility & Other Vehicles, Cables & Control Levers, and Others segments. The company engages in the provision of engines for farm equipment, gensets, and spares; manufacture and trade of electric vehicles and its spare parts; and manufacture of cables and control levers for commercial vehicles, industrial machines, construction equipment, and boats and vehicles. It also provides the greaves care and aftermarket spares services; offers retail vehicle financing; manufactures mechanical and electronic motion control systems; manufactures and supplies e-rickshaw and e-3wheeler under the ELE brand; designs, develops, manufactures, markets, and sells L5 three-wheelers; and designs and manufactures 2-wheelers under the Ampere brand. In addition, the company offers engineering services to the OEMs for development and maintenance of engines, plant and machinery, and equipment; fuel-agnostic powertrain solutions; lending and related solutions to purchasers of electric 2-wheeler and 3-wheeler vehicles; and lease financing options. Further, it offers engineering services, which includes auto application, such as diesel engine, and gasoline and alternate fuel; and non-automotive applications comprising power, agriculture, and industrial solutions. Greaves Cotton Limited was founded in 1859 and is headquartered in Mumbai, India.