Greaves Cotton Ltd. share price target

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...

Auto volumes likely to stay sluggish due to slowdown in FY21E In Q2Y21, GCL's auto engine volume (3-W/4-W) fell 72% YoY to 19234 units, impacted by BS-VI norms, 3-W, 4-W auto slowdown amid pandemic. On the other hand, others engine segment supported with volume growth of 27% YoY to 12216 units. Overall engine volumes de-grew 59% YoY. On non-auto side, power genset volumes fell 41% YoY to 558 units. Overall agriculture (pumpset, power tiller, other) volumes fell 42% YoY to 10028 units. GCL may have to take a price hike of 35-45% for BS-VI compliant engines leading 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...

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...