The 13 reports from 5 analysts offering long term price targets
for Greaves Cotton Ltd. have an average target of 95.80. The consensus estimate
represents an upside of 34.93%
from the last price of 71.00.
Background Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cylinder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). The company offers products and solutions across business units- Engines, power, farm equipment, mobility and aftermarket. In FY19 Greaves Cotton augmented its Clean Technology...
Greaves Cotton (GCL) reported weak set of numbers during Q1FY21, impacted due to Covid related disruption amid auto slowdown. Revenue for the quarter fell by 69% YoY/59% QoQ to Rs 1,471 mn, due to significant decline in sales volumes across the segment. Gross margin of the Company fell by 416 bps YoY/69bps QoQ to 27.8%, primarily, due to high material cost. Sharp decline in revenue and fall in gross margin leading to EBITDA loss during the quarter. Company has reported EBITDA loss of Rs 217 mn vs. EBITDA gain of Rs 613 mn YoY. Loss for the...
BS-VI likely to impact auto volumes; slowdown in FY21E In Q1Y21, GCL's engine volume (3-W) fell 83% YoY to 11216 units while 4W volumes was nil. Volumes are likely to be impacted by strict BS-VI norms and auto slowdown amid Covid-19. Other engines segment de-grew 55% YoY to 5155 units. Overall engine volumes de-grew 79% YoY. On non-auto side, power genset volumes fell 75% YoY to 275 units. Overall agriculture (pumpset, power tiller, other) volumes declined 69% YoY to 6317 units. GCL may have to take a price hike of 35-45% for BS-VI compliant engines leading to significant volume reduction and margin stress as it is difficult to...
Greaves revenue decline of 69% was higher than anticipated. Lower OEM volume offtake on account of COVID-19 impacted the volumes. Gross margins dropped 420 bps y-o-y as the company was unable to...
Background Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cylinder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). The company offers products and solutions across business units- Engines, power, farm equipment, mobility and aftermarket. In FY19 Greaves Cotton augmented its Clean Technology...
The Q4FY20 results of Greaves Cotton (Greaves) were lower than estimates across parameters. Earnings pressures are expected to sustain in near term as economic slowdown on account of COVID-19 would impact growth across segments. Moreover, negative operating leverage and pricing pressures from customers would impact margins. At CMP, the stock is trading at 14.4x FY22 earnings which is close to its long-term historical average of 16-17x....
Auto volumes to be impacted by BS-VI, slowdown in FY21E In Q4Y20, GCL's engine volume (3-W) fell 49% YoY to 37516 units while 4W volumes fell 87% YoY to 529 units. They are likely to be impacted by strict BS-VI norms in FY21E and auto slowdown. Other engines segment de-grew 7% YoY to 8739 units. Overall engine volumes de-grew 46% YoY. On nonauto side, power genset volumes declined 35% YoY to 736 units. Overall agriculture (pumpset, power tiller, other) volumes declined 68% YoY to 11928 units. GCL may have to take a price hike of 35-50% for BS-VI compliant engines leading to significant volume reduction and margin stress as it is difficult to completely pass on the price increase amid economic...
The Q4FY20 results of Greaves Cotton (Greaves) were lower than estimates across parameters. Earnings pressures are expected to sustain in near term as economic slowdown on account of COVID-19 would impact growth across segments. Moreover, negative operating leverage and pricing pressures from customers would impact margins. At CMP, the stock is trading at 14.4x FY22 earnings which is close to its long-term historical average of 16-17x....
In 3QFY20, GCL's 3W engine volumes grew 11.7% YoY to 77,148 units while 4-W volumes declined 69% YoY to 1,428 units. These are likely to be impacted by strict BS-VI norms in FY21E. Others engines segment registered growth of 2.2% YoY to 8,649 units. Overall engine volume grew 6.2% YoY. On non-auto side, power genset segment volume declined marginally by 13% on YoY basis to 969 units. Overall agriculture (pumpset, power tiller,...
Greaves Cotton's (GCL) revenues came in at | 494.7 crore, marginally down 2.3% YoY, (in line with our estimates of | 496.1 crore aided by new initiatives business. EBITDA grew 9.4% to | 77.2 crore YoY (above our estimate of | 61 crore). EBITDA margins improved and came in at 170 bps YoY to 15.6% (vs. our estimate of 12.3%) on the back of a reduction in other operating expenses and raw material expenses. Adjusted PAT was at | 50.5 crore, up...
Greaves Cotton's (GCL) revenues came in at | 490 crore, down 1.0% YoY, below our estimate of | 501.2 crore impacted by the auto slowdown. EBITDA came in at | 59.1 crore, down 19.3% YoY (below our estimate of | 69.7 crore). EBITDA margins came in at 12.1%, down 270 bps YoY, impacted by higher operating expenses. GCL reported adjusted PAT of | 42.3 crore, up 6.1% YoY (below our estimate of | 52.1 crore). For H1FY20, engines...
The results of Greaves Cotton Limited's (GCL) Q2FY2020 missed estimates. Topline declined marginally by 1% y-o-y. Subdued performance across engines, agri and aftermarkets segments dragged the revenues down. Operating margins shrunk 270 bps y-o-y to 12.1% (missed estimates) attributable to adverse product mix and high raw material costs. The adjusted PAT at Rs 40 cr declined 19% y-o-y and missed our estimates of Rs 50 cr. Given the headwinds, GCL's topline growth is expected to moderate sharply to flat growth in FY2020....
Background: Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cylinder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). The company offers products and solutions across business units- Engines, power, farm equipment, mobility and aftermarket. In FY19 Greaves Cotton augmented its Clean Technology portfolio with entry in the last-mile affordable 2W...
Slowdown Impact Growth & Profitability in Q1: Greaves Cotton Q1 earning came in much below our estimates on account of revenue mix, cost pressures and lower other income. Revenue for Q1 grew by 7% to Rs. 4.9 Bn and electric mobility contributed ~ 3.8% of revenues.
Greaves Cotton's (GCL) revenues were at | 476.8 crore, up 4.1% YoY, below our estimate of | 485.8 crore. EBITDA was flat at | 61.3 crore YoY (below our estimate of | 65.1 crore). EBITDA margins were at 12.8%, down 50 bps YoY, below our estimate of 13.4%. PAT came in at | 38.2 crore, down 4.2% YoY (below our estimate of | 45.2 crore). For Q1FY20, engines contributed...
Greaves Cotton Limited's (GCL) Q1FY2020 results missed estimates as topline growth moderated sharply to 4% and margins contracted by 50 BPS y-o-y due to operating deleverage. Net profit fell by 4%. Apart from slowdown in the traditional diesel 3W business (40% of the topline), growth is also expected to slow in the aftermarket segment (22% of revenue) due to liquidity concerns and in the agri segment due to rural stress. While emerging business of CNG engines and electric 2W are growing rapidly, given their small size, it would not meaningfully offset...
Greaves Cotton came out with good set of numbers, revenue surpassed our estimate, however EBITDA and PAT were slightly below our estimate. Standalone revenue for Q4FY19 grew 8.6% YoY to Rs 5281 mn, ahead of our estimate of Rs 4740 mn, while EBITDA came at Rs 700 mn slightly below our estimate of Rs 760 mn. EBITDA margin contracted by 112bps YoY to 13.3% from 14.4% in Q4FY18, mainly due to high commodity prices and slower after market growth. Adjusted PAT (adjustment for exceptional item comprising of Rs 155mn provision for IL&FS; exposure) for the quarter stood...
Greaves Cotton (Greaves) Q4 and FY19 estimates were in line with our estimates. Q4 adjusted earnings dropped by 4.2% YoY to Rs. 1.89 on the back of higher commodity prices, gross margin dropped by 150 bps YoY.
In Q4Y19, GCL's engine volume (3-W, 4W) grew 6.8% YoY to 86647 units. The 3-W (passenger, goods) volumes grew 7.5% YoY at 74060 units. On non-auto side, power genset segment volume grew 16.6% YoY to 1130 units. Pumpset volume grew 26.9% to 25319 units YoY. Total agricultural volume grew 13.5% with some impact on power tiller segment due to liquidity issues at customers end. We build in 3-W volumes of ~348637 and...
