Greaves Cotton (Greaves) derives 60%+ of its revenues from the auto segment (3W+4W small commercial vehicles [SCVs]). Need for last mile transportation should lead to uptick in demand for 3W goods vehicles, where engines manufactured by Greaves command a major 75%+ of the market share. The companys existing supply agreements with Tata Motors (Magic and Iris models) and its recent agreement with Eicher, strengthen our view that Auto engines business would report ~5% sales CAGR during FY2015-18E. Bajaj Auto recently announced launch of Quadricycle, for which it is awaiting regulatory clearances in the domestic market. We sense large market could open up post the successful launch of the product. Greaves is already ready with a 265cc engine to cater to the needs of OEMs who intend to compete with Bajaj in this space. Notably, some of these OEMs are already clients of Greaves for other products. However, we sense it is too early to build any expectations from the opportunity arising from the quadricycle market. In 2QFY2015, Greaves Management took a conscious decision to exit its loss making infrastructure equipments division. Losses from this segment were owing to the weak demand scenario which was leading to low capacity utilization, and...