Greaves Cotton Ltd Stock Analysis

BSE: 501455 | NSE: GREAVESCOT | Diesel Engines | Mid Cap

BSE Share Price Jan 21, 18:01
233.85 -15.60 (-6.25%)

DeciZen - Make an Informed Decision on Greaves Cotton

Overall Rating

1. Quality

2. Valuation

Overvalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is Greaves Cotton Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Greaves Cotton Ltd is a good quality company.

2. Is Greaves Cotton Ltd undervalued or overvalued?

The key valuation ratios of Greaves Cotton Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Greaves Cotton Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Greaves Cotton Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Greaves Cotton:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Greaves Cotton Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 23%21%14.9%11.7%19%16.6%15.6%16.2%13.9%-0.3%-
Value Creation Index 0.60.50.1-0.20.40.20.10.2-0.0-1.0-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 1,7891,9061,7361,6981,6161,6341,7922,0151,9111,5001,617
YoY Gr. Rt. %-6.5%-8.9%-2.2%-4.8%1.1%9.7%12.5%-5.2%-21.5%-
Adj EPS 5.564.73.96.66.266.45.3-0.3-0.5
YoY Gr. Rt. %-10.4%-23%-16.6%70.6%-7.1%-2.3%6.2%-17.6%-105.9%-
BVPS (₹) 25.729.933.433.536.537.939.539.734.533.831.8
Adj Net Profit 13414711494.7162150147156122-7.1-11
Cash Flow from Ops. 110108155225230114280145102147-
Debt/CF from Ops. 0.30.2000000.10.10-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales -1.9%-1.5%-5.8%-21.5%
Adj EPS -172.7%-154.2%-137.2%-105.9%
BVPS 3.1-1.5-5.1-2.2
Share Price 10.2% 12.1% 25% 151.9%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 23.521.614.611.518.916.515.516.113.8-0.9-1.5
Op. Profit Mgn % 13.212.610.811.816.414.414.113.3115.33.9
Net Profit Mgn % 7.57.76.55.6109.28.27.66.3-0.5-0.7
Debt to Equity 0.10000000000
Working Cap Days 1361231511359610110198112138163
Cash Conv. Cycle 3435463819161613221452

Recent Performance Summary

Sales growth is good in last 4 quarters at 22.49%

Return on Equity is Poor

Sales growth has been subdued in last 3 years -5.75%

Latest Financials - Greaves Cotton Ltd.

Standalone Consolidated
TTM EPS (₹) 2.4 -0.5
TTM Sales (₹ Cr.) 1,392 1,617
BVPS (₹.) 39 31.8
Reserves (₹ Cr.) 855 689
P/BV 6.00 7.36
PE 99.30 0.00
From the Market
52 Week Low / High (₹) 84.55 / 251.60
All Time Low / High (₹) 0.77 / 251.60
Market Cap (₹ Cr.) 5,408
Equity (₹ Cr.) 46.3
Face Value (₹) 2
Industry PE 31.2

Management X-Ray of Greaves Cotton :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Greaves Cotton Ltd

Greaves Cotton Limited commonly known as Greaves is one of the leading and diversified engineering companies in India with a rich legacy and brand trust of many years impacting a million lives every day. Greaves is a market leader in fuel-agnostic powertrain solutions and manufactures Cleantech powertrains for CNG, Petrol, and Diesel segments.

The company operates in multiple segments namely Automotive, Non-Automotive, Aftermarket, Greaves Retail, Electric Mobility (Ampere Electric for electric scooters and other electric industrial products and e-rickshaw) & Greaves Finance.

Over the years, the company has actively participated in nation-building and continues to support the 'Make-In-India' initiative of the Government through its several state-of-the-art manufacturing facilities in the country creating world-class products and solutions. The company has a vast nationwide network with hundreds of Greaves big retail centres & thousands of smaller spare parts retail outlets across the country.

Business area of the company

The company is engaged in manufacturing of engines, engine applications and trading of power tillers, spares related to engines, electric vehicles and infrastructure equipment etc. The Company has manufacturing facilities in the states of Maharashtra and Tamil Nadu. The products are mainly sold in India with some export to Middle East, Africa & South East Asia Region. The Company has two direct and one indirect subsidiary.

Business segments

Automotive

  • Engines
  • Aftermarket

Non-Automotive

  • Power Solutions
  • Agri Solutions
  • Industrial Engines

E-mobility

  • Electric 2 Wheeler - Ampere
  • Electric 3 Wheeler - Ele

Retail

Finance

Milestones

  • 1859: James Greaves and George Cotton founded the company.
  • 1937: Greaves Cotton entered into a joint Venture with Crompton Parkinson of England to introduce ceiling fans and range of other electrical products in India.
  • 1939: Joint Venture with Ruston & Hornsby ltd., U.K. and started manufacturing diesel engines in India.
  • 1947: Pioneering industrialist Lala Karamchand Thapar bought Greaves and it became an Indian Company.
  • 1962: Greaves Power Transmission unit set up in Pune in collaboration with David Brown Gear Industries, U.K., and pioneered the manufacturing of Industrial and marine Gear boxes in India.
  • 1986: Greaves Joint Venture wwith Morganite Crucible Ltd., U.K. to manufacture Silicon Carbide Crucibles. Technical collaboration with BOMAG GmbH, Germany, to manufacture Vibratory Compactors.
  • 1996: Launched Transit Mixer and batching plants.
  • 2001: Introduced concreting equipment in technical collaboration with CIFA of Italy.
  • 2005: Eco friendly light diesel engine complying with Bharat stage II (Euro II) emission norms launched.
  • 2007: Greaves second Transit mixer manufacturing facility opened near Chennai. Greaves acquires Bukh-Farymann GmbH Diesel, Germany Greaves sets up light engines unit IV at Aurangabad.
  • 2009: Greaves crosses two million mark in light diesel engines.
  • 2012: Greaves crosses three million mark in light diesel engines.
  • 2017: Greaves Cotton Limited reaches over 5 million customers with made in India engines.
  • 2018: Greaves opens 100th Greaves Care Centre for Conventional/ Alternate Fuel and Electric Vehicles. Greaves Cotton signs up with Piaggio Vehicles to develop a new generation of powertrain applications.
  • 2019: Mahindra partners with greaves cotton to source BS-VI ready powertrain Solutions.
  • 2019. Greaves Cotton launches BS-VI compliant, world’s cleanest single - cylinder Diesel engine.
  • 2020: Ampere launches magnus Pro Electric Scooter.
  • 2020: Greaves Genius, a series of Smart Gensets launched.
  • 2020: Greaves launches OHV petrol pumpset.
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