Greaves Cotton Ltd. share price target

Greaves Cotton (GCL) has acquired a majority stake in Coimbatore based electric vehicle company Ampere Vehicles Pvt Ltd. GCL is acquiring a 67% stake in the first phase, to be completed by December 31, 2018, at | 77 crore. Out of this, | 25 crore will be equity infusion while | 52 crore is towards acquiring a non-promoter stake and preference shares in the first phase. Subsequently, it has the option to acquire another 13% over three years for | 75.5 crore linked to revenue and operating performance in future. The acquisitions come at about 1.6x EV to sales on FY19E sales....

Sector: Auto-ancillary /Mid-Cap | Earnings Update 1QFY19 Background: Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cyli nder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). Over the years, GCL has been able to command an overall 3W auto segment share at about 35% in FY08-14, second only to Bajaj Auto (that has in-house engine manufacturing). In the 3W goods segment (sub 1-tonne category), GCL commands a dominating position of 80-90% share as the market leader OEM i.e. Piaggio (single largest client of GCL) sells the highest 3W goods carrier in the domestic market. Auto segment comprises 55-60% of overall revenues. GCL has more than 3,500 dealer network....

ICICI Securities Ltd | Retail Equity Research Greaves Cotton's (GCL) reported revenues came in at | 458.2 crore, up 12.8% YoY nearly in line with our estimates of | 461.4 crore. The engine segment revenues came in at | 433.4 crore, down 1.3% while other segment revenues were at | 24.8 crore, up 66.3% During Q1FY19, EBITDA came in at | 60.9 crore, up 10.1% YoY (vs. our estimate: | 66.6 crore). EBITDA margins came in at 13.3%, down marginally by 30 bps YoY. Hence, it was below our estimate of...

We attended the analyst meet of Greaves Cotton on May 4, 2018 post their Q4FY18 earnings release. Management unveiled Greaves 2.0 strategy, a 5 year plan to de-risk engine business by becoming fuel agnostic and reduce the share of engine business to 40% in overall revenue by growing aftermarket and other segments.

ICICI Securities Ltd | Retail Equity Research Greaves Cotton (GCL) reported strong Q4FY18 numbers higher than our estimates on the topline and EBITDA margin front. The company reported revenues of | 486.2 crore, up 24.4% YoY (higher than our estimate of | 422.7 crore). The engine segment revenue came in at | 465 crore while other segments revenue was at | 20.8 crore During Q4FY18, EBITDA was at | 69.9 crore with higher-thanexpected EBIDTA margin of 14.4% (our estimate of 13.3%), which...

We are positive on the company backed by launch of wide range of fuel products and growth in economy will boost the revenue .At CMP of Rs. 120.6 GCL is trading at a P/E multiple of 15.4x and 14.4x to its FY18E and FY19E earnings, respectively. On the basis of estimates. we arrive at...

Sector: Auto-ancillary /Mid-Cap | Earnings Update 3QFY18 Background: Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cyli nder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). Over the years, GCL has been able to command an overall 3W auto segment share at about 35% in FY08-14, second only to Bajaj Auto (that has in-house engine manufacturing). In the 3W goods segment (sub 1-tonne category), GCL commands a dominating position of 80-90% share as the market leader OEM i.e. Piaggio (single largest client of GCL) sells the highest 3W goods carrier in the domestic market. Auto segment comprises 55-60% of overall revenues. GCL has more than 3,500 dealer network....

ICICI Securities Ltd | Retail Equity Research Greaves Cotton (GCL) reported mixed Q3FY18 numbers that were higher than out estimates on topline but lower on EBITDA margins front Revenues came in at | 447.3 crore, up 10.7% YoY (our estimate: | 430.6 crore). The engine segment revenues came in at | 428.3 crore while other segment revenues came in at | 18.9 crore In Q3FY18, volumes in the power gensets business rose from 840 units in Q3FY17 vs. 1096 units in Q3FY18. In auto segment, GCL...

Greaves Cotton (GCL) reported weak numbers that missed our revenue and profit estimates. The company continues to face growth challenges in view of slowdown in 3W sales of its OEMs and delay in firming up new OEMs for engine supplies. Over the longer term, the company will have to contend with challenge from shift away from fossil fuels to electric engines. Our previous call on the stock was Reduce as we expected the earnings to continue to disappoint and hence believed that valuations need to correct. Since our previous update in Q1FY18, the stock has corrected sharply by 19%. While the growth outlook remains tepid (we...