What is CAGR? What does CAGR table indicate for Greaves Cotton Ltd?

Compounded average growth rate (CAGR) measures the average annual growth rate compounded year-on-year over a period of time.

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...

Decision Maker

Consolidated basis

The valuation guidance of this company is based on Consolidated basis.

1. Right Stock

2. Right Price

Price Chart

3. Right Time

10 Year X-Ray

Consolidated basis Standalone basis P Consolidated basis P

Analysis of Financial Track Record

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

What is a Financial Track Record? How to read this chart in order to understand the data present here?

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'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'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	0.20	0.16	0.40	-0.01	-0.22	0.26	0.11	0.04	0.08	NA

Growth Parameters	Growth Parameters Colour Code Guide

Net Sales (Rs. Cr.)	1,707	1,789	1,906	1,736	1,698	1,616	1,634	1,792	2,015	1,911
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.)	6.54	5.47	6.04	4.65	3.88	6.62	6.15	6.01	6.38	5.26
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.)	27.33	25.67	29.86	33.4	33.54	36.49	37.89	39.51	39.69	34.53
Adjusted Net Profit	160	134	147	114	94.7	162	150	147	156	122
Net Op. Cash Flow (Rs. Cr.)	146	110	108	155	225	230	114	280	145	102
Debt to Cash Flow from Ops	0.15	0.3	0.15	0	0	0	0	0	0.08	0.09

Difference between Standalone Basis and Consolidated basis? Which method is preferred for Greaves Cotton Ltd. ?

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	2.6	0.6	-3.1	-13
Share Price	4.7%	-1.7%	1.4%	52.2%

Key Financial Parameter	Performance Ratio Colour Code Guide

	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Equity (%)	25.87	23.52	21.61	14.62	11.53	18.87	16.53	15.54	16.1	13.77
Operating Profit Margin (%)	15.07	13.23	12.62	10.81	11.84	16.39	14.38	14.09	13.33	11.01
Net Profit Margin (%)	9.35	7.47	7.73	6.54	5.58	10.01	9.19	8.2	7.62	6.27
Debt to Equity	0.03	0.05	0.02	0	0	0	0	0	0.01	0.01
Working Capital Days	153	136	123	151	135	96	101	101	98	112
Cash Conversion Cycle	23	34	35	46	38	19	16	16	13	22

Management X-Ray

Corporate Governance What do we look at?

Corporate Governance

Board Credentials

Promoter's holding

Transparency

Integrity

Shareholding Pattern

Entity	Percentage Holding
Promoters	55.63%
Institutions	19.25%
Non-Institutions	25.12%

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

FAQs

1. Is Greaves Cotton Ltd a good quality company?

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.

2. Is current market price of Greaves Cotton Ltd a good price to buy it?

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.

3. What is Greaves Cotton Ltd share price return in the past 10 years ?

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.

About Company

The company operates in multiple segments namely Automotive,

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.