Greaves Cotton Ltd - Stock Valuation and Financial Performance

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

Greaves Cotton Share Price

126.45 1.70 1.36%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Greaves Cotton

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Greaves Cotton stock performance -

mw4me loader
P/E Ratio (CD):
0.00
Market Cap:
2,933.6 Cr.
52-wk low:
121
52-wk high:
175.5

Is Greaves Cotton Ltd an attractive stock to invest in?

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 average 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 Fair zone.

3. Is Greaves Cotton Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Greaves Cotton Ltd is likely to Fall 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
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 17.1%18.3%19.2%19%15.6%16.2%13.9%-0.3%-4.5%5.6%-
Value Creation
Index
0.20.30.40.40.10.20.0-1.0-1.3-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,6351,6591,6161,6341,7922,0151,9111,5001,7102,6992,788
Sales YoY Gr.-1.5%-2.6%1.1%9.7%12.5%-5.2%-21.5%14%57.9%-
Adj EPS 5.46.16.7766.45.3-0.3-1.93.2-4.8
YoY Gr.-13.6%10.2%4.9%-14.5%6.2%-17.6%-105.9%NANA-
BVPS (₹) 33.433.536.537.939.539.734.533.832.267.961.2
Adj Net
Profit
131148164172147156122-7.1-43.375-111
Cash Flow from Ops. 155225230114280145102147-56.3-135-
Debt/CF from Ops. 000000.10.10-4.1-0-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.7%8.5%12.2%57.9%
Adj EPS -5.4%-11.6%-14.9%NA
BVPS8.2%11.4%25.3%111.2%
Share Price 4.9% -2% -0% -0.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
16.818.119.118.915.516.113.8-0.9-5.76.4-7.4
Op. Profit
Mgn %
13.11716.614.614.113.3115.31.44.94.2
Net Profit
Mgn %
8910.110.58.27.66.3-0.5-2.52.5-4
Debt to
Equity
000000000.30-
Working Cap
Days
1591389498999611113817017894
Cash Conv.
Cycle
46361916161322151-846

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 12.20%

Sales growth is good in last 4 quarters at 13.22%

Return on Equity is Poor

Latest Financials - Greaves Cotton Ltd.

Standalone Consolidated
TTM EPS (₹) 11.8 -4.8
TTM Sales (₹ Cr.) 1,734 2,788
BVPS (₹.) 54.8 61.2
Reserves (₹ Cr.) 1,225 1,374
P/BV 2.31 2.07
PE 10.69 0.00
From the Market
52 Week Low / High (₹) 121.00 / 175.50
All Time Low / High (₹) 0.77 / 258.85
Market Cap (₹ Cr.) 2,934
Equity (₹ Cr.) 46.4
Face Value (₹) 2
Industry PE 48.7

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

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Analyst's Notes

Key Ratios of Greaves Cotton

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,6351,6591,6161,6341,7922,0151,9111,5001,7102,699
Operating Expenses 1,4211,3781,3491,3961,5401,7521,7521,4211,6872,566
Manufacturing Costs-89-884950515458546676
Material Costs1,1921,1471,0391,0611,2101,3821,3181,0801,2591,970
Employee Cost 172164155160167178173142170212
Other Costs 146155106125111138203145192308
Operating Profit 2142812672382532641598023133
Operating Profit Margin (%) 13.1%16.9%16.5%14.6%14.1%13.1%8.3%5.3%1.3%4.9%
Other Income 2925495648507182767
Interest 52111457512
Depreciation 45484647525261605957
Exceptional Items 8-6327647-185-34-2-13
Profit Before Tax 201192296252295240169-14-19113
Tax 6155946893774251643
Profit After Tax 140137203184202163127-19-3570
PAT Margin (%) 8.6%8.3%12.5%11.3%11.3%8.1%6.7%-1.3%-2.1%2.6%
Adjusted EPS (₹)5.13.48.27.48.36.75.6-0.8-1.53.4
Dividend Payout Ratio (%)26%73%67%74%66%59%0%-25%-13%27%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 8208238919259659697987817441,573
Share Capital 49494949494946464646
Reserves 7717748428769169207527346981,526
Minority Interest0000014000381
Debt00000111041963
Long Term Debt000005001690
Short Term Debt000006104273
Trade Payables186146194220273324299356379441
Others Liabilities 50315592105108136132126306306
Total Liabilities 1,5091,1241,1771,2501,3461,4541,2391,2671,6242,705

Fixed Assets

Gross Block636624334385409512618639639666
Accumulated Depreciation2662985197135177237267274296
Net Fixed Assets370326283288274335380372364370
CWIP 582415287269758283
Investments 1812933584115064203116123
Inventories163106108129109134194175193215
Trade Receivables326231201270253342255209186166
Cash Equivalents 343621133345190280100539
Others Assets4301241821241431061481556821,208
Total Assets 1,5091,1241,1771,2501,3461,4541,2391,2671,6242,705

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 155225230114280145102147-56-135
PBT 175111201249295240169-14-19113
Adjustment 245377-3-284046776961
Changes in Working Capital 1410537-58104-43-43105-91-263
Tax Paid -58-44-85-74-92-92-70-22-15-46
Cash Flow From Investing Activity -108-179-7036-9735255-108-238-758
Capex -8-44-36-37-2-73-61-4033-28
Net Investments -86-1110110116392-69-272-724
Others -14-24-3462-96-8-7621-5
Cash Flow From Financing Activity -55-60-166-148-162-174-241-20210889
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -5-2-1-1-1-4-3-5-3-9
Dividend Paid -34-57-165-147-162-16200-5-5
Others -160000-8-238-15218903
Net Cash Flow -8-14-6220711619-84-4
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)18.1916.823.6920.2821.3916.8214.4-2.38-4.636.02
ROCE (%)26.3823.8334.7527.8531.3225.0819.46-0.86-1.589.68
Asset Turnover Ratio1.361.391.571.51.421.441.421.21.181.25
PAT to CFO Conversion(x)1.111.641.130.621.390.890.8N/AN/A-1.93
Working Capital Days
Receivable Days69564447525457564224
Inventory Days34272224242231453928
Payable Days6552597174798611110776

Greaves Cotton Ltd Stock News

Greaves Cotton Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Greaves Cotton on 28-Mar-2024 16:01 is ₹126.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Greaves Cotton stood at ₹2,933.6.
The latest P/E ratio of Greaves Cotton as of 28-Mar-2024 16:01 is 10.69.
The latest P/B ratio of Greaves Cotton as of 28-Mar-2024 16:01 is 2.31.
The 52-week high of Greaves Cotton is ₹175.5 and the 52-week low is ₹121.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Greaves Cotton is ₹1,734 ( Cr.) .

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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