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Greaves Cotton Ltd Stock Analysis

Small Cap
Evaluated by 4461 users | BSE: 501455 | NSE: GREAVESCOT |
Diesel Engines

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 25.23%22.98%21.01%14.91%11.73%18.96%16.6%15.6%16.18%13.9%
Value Creation Index 0.200.160.40-0.01-0.220.260.110.040.08NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,7071,7891,9061,7361,6981,6161,6341,7922,0151,911
Y-o-Y Gr. Rt.-4.8%6.5%-8.9%-2.2%-4.8%1.1%9.7%12.5%-5.2%
Adjusted EPS (Rs.) 6.545.476.044.653.886.626.156.016.385.26
Y-o-Y Gr. Rt.--16.4%10.4%-23%-16.6%70.6%-7.1%-2.3%6.2%-17.6%
Book Value per Share (Rs.) 27.3325.6729.8633.433.5436.4937.8939.5139.6934.53
Adjusted Net Profit 16013414711494.7162150147156122
Net Op. Cash Flow (Rs. Cr.) 146110108155225230114280145102
Debt to Cash Flow from Ops 0.150.30.15000000.080.09
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Greaves Cotton Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.3%2.4%5.4%-5.2%
Adjusted EPS -2.4%6.3%-5.1%-17.6%
Book Value per Share 2.60.6-3.1-13
Share Price 4.7% -1.7% 1.4% 52.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.8723.5221.6114.6211.5318.8716.5315.5416.113.77
Operating Profit Margin (%) 15.0713.2312.6210.8111.8416.3914.3814.0913.3311.01
Net Profit Margin (%) 9.357.477.736.545.5810.019.198.27.626.27
Debt to Equity 0.030.050.02000000.010.01
Working Capital Days 1531361231511359610110198112
Cash Conversion Cycle 23343546381916161322
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 55.63%
Institutions 19.25%
Non-Institutions 25.12%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Greaves Cotton Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Greaves Cotton Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Greaves Cotton Ltd's performance infers:

Greaves Cotton Ltd earnings have grown by 6.3%, whereas share price has depreciated -1.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Greaves Cotton Ltd share prices over the last 10 years. Here is what we found out:

Greaves Cotton Ltd share price has depreciated 2.9% annually over the past ten years.

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,

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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