Greaves Cotton Ltd. share price forecast

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...

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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...

New business share increased to ~30% while auto engine reduced to ~37% from FY17 to FY21. Overall, B2C share increased to ~60% in FY21 E-mobility is expected to drive future growth (~12% of FY21 revenue)...

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...

New business share increased to ~30% while auto engine reduced to ~37% from FY17 to FY21. Overall, B2C share increased to ~60% in FY21 E-mobility is expected to drive future growth (~12% of FY21 revenue)...

Recent announcement by Department of Heavy Industries (DHI) for modification of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME-II), including increasing the demand incentive to 15,000 per KWh from the earlier uniform subsidy of 10,000 per KWh for all EVs (including E-2W, E-3W) including plug-in hybrids and strong hybrids, except buses and the limit on the incentives for an E-2W is now capped at 40% of its price, twice the previous limit of 20%. Besides these incentives, various state governments are providing additional...

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...

E-mobility segment registered 69% jump in volumes from 5947 units to 10075 units. Going ahead, we believe the momentum will continue with high speed segment in E-2W and E-Ricks contributing a larger share in the growth plan. The management has shared a | 700 crore capex plan for 10 years (capex + working capital) on a proportionate basis. Further, the company is continuously working on increasing localisation with the only major import being lithium ion cells. Going ahead, increasing dealer network, Ampere Vehicle Finance along with continuous innovation and product improvement...

Leading suppliers of engines to auto OEMs with high market share in 3W segment. As on 3QFY21, the company derives its revenue from: engines (47%), aftermarkets (25%), E-mobility (13%)and others (15%). Clients: Tata Motors, Piaggio, TVS, M&M;, Atul Auto We feel a P/E range of 20x-25x should be justified for Greaves which leads to a fair value range of ~Rs160200, translating into upside range of ~19%-49%. High wallet share with key 3W OEMs...

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...

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...