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Greaves Cotton Ltd. Stock Analysis

Small Cap
Evaluated by 4226 users | BSE: 501455 | NSE: GREAVESCOT |
Diesel Engines
Greaves Cotton (GCL), incorporated in 1922, is a well-diversified engineering company. The company is engaged in manufacturing of diesel and petrol engines, gensets, agro equipments and construction equipments. The company owns six manufacturing units located in the states of Maharashtra...
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 -2.2% -10.1% -18.1% -45.2%
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 54.82%
Institutions 23.44%
Non-Institutions 21.74%
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 -10.1% 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 -2.5% annually over the past ten years.

Greaves Cotton (GCL), incorporated in 1922, is a well-diversified engineering company. The company is engaged in manufacturing of diesel and petrol engines, gensets, agro equipments and construction equipments. The company owns six manufacturing units located in the states of Maharashtra and Tamil Nadu.

The company’s manufacturing units have received ISO 9001:2000 and ISO 14001:2004 certifications for quality management. Headquartered at Pune, the company has a pan-India

Greaves Cotton (GCL), incorporated in 1922, is a well-diversified engineering company. The company is engaged in manufacturing of diesel and petrol engines, gensets, agro equipments and construction equipments. The company owns six manufacturing units located in the states of Maharashtra and Tamil Nadu.

The company’s manufacturing units have received ISO 9001:2000 and ISO 14001:2004 certifications for quality management. Headquartered at Pune, the company has a pan-India presence of its marketing offices.

In 1991, Greaves Cotton was first to form Indo-Russian joint venture in the private sector, namely Rajasthan Polymers and Resins, to manufacture 20,000 TPA of ABS/HIPS resins.  This business was later merged with the company in the year 1999.

In 1995-96, the company commenced a joint venture with SAME SpA, Italy to form SAME Greaves that is engaged in manufacturing of diesel engines.

In 1998-99 the company started commercial production diesel engines. Later in 2001-02 this company exited from this venture. The company also entered joint venture with Piaggio Veicoli Europei SpA of Italy to form Piaggio Greaves Vehicles. The company exited from this venture in 2000-01.

In April 2008 the company entered into a technical collaboration with Bomag GmbH, Germany to manufacture the latest generation 19-ton vibratory soil compactors in India.

In 2012 Greaves crossed three million mark in light diesel engines. In September Greaves Automotive Engines Business, part of Greaves Cotton Limited, one of India's leading engineering companies, added TVS Motor Company to its list of customers, for supply of single cylinder diesel engine (G435) for the TVS King DS (diesel variant).  In November Greaves Construction Equipment Business, part of Greaves Cotton Limited, one of India's leading engineering companies, launched the first of its 37 metre 3 axle truck mounted boom pump - GCP3709Z . 

Products

Power Generations- The company manufactures diesel engines ranging from 10-1000 HP that has application in diesel generating sets, barges, pilot launches, compressors, construction equipment, cranes and forklifts. Under this, company manufactures dual fuel engines/gensets ranging from 30 KVA to 400 KVA. It also manufactures gas engines / gensets operating on natural gas that’s from 125 KVA to 300 KVA. The company’s foundry division sources ductile iron casting for Greaves Engines.

Agro-Equipments- The company manufactures lightweight petrol, diesel / kerosene engines ranging from 1-4 HP and gensets in the 1.4 KVA range. The products are used in power sprayers, pumpsets and power reapers.

Lightweight Engine- The company’s lightweight diesel engines are used in 2-wheelers, 3-wheelers, mini cars, etc. Greaves manufactures these engines ranging from 4-11 HP. Greaves light diesel engines are widely used in defence applications.

Infrastructure Equipment- Under this, the company manufactures products that caters construction industry. Greaves manufactures a spectrum of products such as transit mixers, concrete pumps, batching plants, vibratory soil compactors, heavy tandem rollers, light tandem rollers, etc.

Aero Engines- The company is authorised distributor of Rotax Aircraft Engines in India and it is manufactured by BRP-Powertrain GmbH & Co. KG in Austria. These engines are manufactured for PWC, ATV, Snowmobile, Motorcycle, Kart, Watercraft and Aircraft.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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