Greaves Cotton Ltd. share price target

Greaves Cotton reported Q2FY18 numbers, which were higher than out estimates on the topline and EBITDA margins front. Revenues came in at | 452.4 crore, up 3% YoY (our estimate: | 442.4 crore). The engine segment revenues came in at | 433.4 crore while other segment revenues came in at | 18.5 crore During Q2FY18, volumes in the power gensets business rose form 1000 units in Q2FY17 vs. 1100 units in Q2FY18. In the auto segment, the company reported mixed results as 4W LCVs grew 19% YoY to...

Growth Crawling Back; Preparing for BS-VI World: Greaves has signed-up with major Original Equipment Manufacturer (OEM) customers for development of Bharat Stage (BS-VI) compliant engines which at themoment may come in force in next 29 months.

Greaves Cotton (GCL) reported Q1FY18 numbers, which were lower than out estimates on operational profitability front led by lower margins. Coupled with the above, lower than other income and one off exceptional gain also impacted profitability. However, price hike in auto engines segment helped the company to post a marginal 1.4% YoY growth in revenues despite volume decline across all product categories (excluding gensets) During Q1FY18, volumes in the power gensets business rose form...

Greaves Sails Through Three Major Changes: In the past 9 months, market went through three major changes; Demonetisation in November 2016 impacted volumes significantly and market creeped through gradually to switch by auto makers from BS-III to BS-IV emission norms beginning April 2017 which ushered in price hike in the range of 8.0%-10.0%; and with the introduction of GST, beginning July 2017 volumes were further depressed.

Incorporated in 1859, Greaves Cotton is one of the India's leading and well diversified engineering companies, which manufactures a wide range of industrial products to meet the requirement of core sectors in India and abroad. Company's core businesses are manufacturing of Diesel / Petrol Engines, Gensets and Pumpsets....

Volume Pick-up and Easing Cost Pressures to Aid Growth: Greaves consolidated revenue (net) remained flat at 1.1% at Rs.16,344mnnevertheless consolidated EBITDA dropped by 9.0% to Rs.2,434mn whichare however higher by 2.4% and 1.6% respectively than our full year FY17 estimates. In terms of volumes, for FY17 for 3 Wheelers engines reached to 270k, 4 Wheelers-30k, Power Gen-32k, Power Tillers-3.8k and Pumps-90k. Despitevolume growth in other segments, drop in auto volumes was majorly due to demonetisation during the peak season and switch from BS3 to BS4 standards which came in with higher realisation aided flat revenues for FY17.

ICICI Securities Ltd | Retail Equity Research Greaves Cotton Ltd reported Q4FY17 numbers which were below than out estimates on topline and bottomline front. The key disappointment came in from 3W auto as transition to BS IV engines lead to ramp down in offtake of 3W auto engines . During Q4FY17,...

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). 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 of FY13) as the market leader OEM i.e. Piaggio (single largest client of GCL) sells the highest 3W goods carrier in the...

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). 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 of FY13) as the market leader OEM i.e. Piaggio (single largest client of GCL) sells the highest 3W goods carrier in the...

3W and Pumpset Volumes Impacted by Demonetisation: 3W engine and pumpset volumes dropped by 16.3% and 30.0% during Q3FY17 to 67,000 and 350 compared to year ago level. However, 4W, Power tillers andGenset volumes were higher by 15.4%, 13.0% and 82.6% respectively to 7,500, 26,000 and 840 respectively. During 9MFY17, 3W and 4W volumes reached to 2,17,000 and 24,500 which are lower by 5.7% and 2.0% respectively while powertillers, pumpsets and gensets volumes reached to 63,000, 3,350 and 2,240 which are higher by 3.2%, 11.7% and 61.2% respectively.