My Application Form Status

Check the status of your application form with Angel Broking.
Arq - The Hyper Intelligent Investment Engine By Angel Broking

Greaves Cotton Ltd Research Report - 06th Aug 2016

Capital Goods | Published on Aug 06th 2016


Greaves Cotton reported in-line gross sale numbers at Rs444cr. Reported sales were up 5.1% yoy. Engines segment (96% of 1QFY2017 revenues) reported 3.1% yoy increase in sales to Rs427cr. Others segment (4% of 1QFY2017 revenues) benefitted from strong performance seen across their Farm Equipment business & Auxiliary Power business. This segment on lower base, reported strong 68.6% yoy increase in revenues to Rs18cr. GC reported 65bps yoy decline in its EBITDA margins during 1QFY2017 to 13.3%. Strategic initiatives to build the business for future led to increase in other expenses, which witnessed 13% yoy increase to Rs39cr (8.7% of 1QFY2017 sales). If we look at segment-wise EBIT margins, then both, Engines & Others segment reported 31bps and 97bps, yoy decline in 1QFY2017 to 15.5% and 6.8%, respectively. In-line with yoy EBITDA margin decline, PAT margins also declined 169bps yoy to 8.7%. On adjusting for exceptional items, Adj. PAT margins expanded 131bps yoy to 9.9% in 1QFY2017. Valuation: Considering margin expansion scenario, debt free status and strong cash flow generating profile, we expect Greaves stock to trade at premium valuations. At CMP of Rs139, Greaves is trading at FY2017E and FY2018E, P/E multiple of 17.8x and 16.4x, respectively. Given that the current valuations are capturing all the positives, we have NEUTRAL rating on the stock.

Download Full Report


CMP 139
Target Price
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)Array
MCAP NSE (Rs in Cr)Array
P/E (x)Array
EPS (Rs.)Array
BV (Rs.)Array
Div Yield (%)Array
FV (Rs.)Array
P/BV (x)Array
EV/Sales (x)Array
EV/EBITDA (x)Array

Shareholding Pattern (%)

Public & Others11.0
Grand Total100.0

Trade Securely


Portfolio Tracking & Trading Application View Demo