Greaves Cotton Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Greaves Cotton (GCL) reported decent Q3FY17 numbers that were higher than out estimates on topline and bottomline front. However, margins were slightly lower than our estimates. Though demonetisation had a negative impact on the auto segment, 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...

ICICI Securities Ltd | Retail Equity Research Reported revenues increased 3.5% YoY to ~| 439.4 crore (vs. Idirect estimate: | 441 crore). Revenues of the engine segment were at | 477.9 crore, up 4.7% YoY. Key reason for revenue growth was strong momentum in farm equipment and auxiliary power business) During Q2FY17, volumes in pump sets and power gensets business saw healthy growth of 19% YoY and 70% YoY, respectively. On auto, even though decline in 3W engine sales has been arrested the LCV segment declined 27% YoY at 8000 units for Q2FY17...

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...

Greaves Cotton reported in-line gross sale numbers at Rs444cr. Reported sales were up 5.1% yoy. Engines segment (96% of 1QFY2017 revenues) reported 3.1% yoy increase in sales to Rs427cr. Others segment (4% of 1QFY2017 revenues) benefitted from strong performance seen across their Farm Equipment business & Auxiliary Power business. Thi..

ICICI Securities Ltd | Retail Equity Research Greaves Cotton (GCL) reported muted Q1FY17 results, which were below estimates mainly on the EBITDA margin, PAT front. However, after many quarters, the company reported positive revenue growth. The quarter was also marred by one-off expenditure on account of employee separation costs and loss impairment of assets) Net sales (adjusted for excise duty) came in at | 400.7 crore, up 4.7% YoY, a tad below our expectations of | 407.7 crore. However, the key...

Greaves Cotton Limited (GCL) is one of India's premier engineering companies with a product based business model. The company was originally founded in 1859 and was later acquired by Thapar group in 1947. It is primarily engaged in manufacture of diesel, petrol and kerosene based engines for automobiles, farm/agri equipments, power gensets and other industrial & construction equipments. GCL is the market leader in the 3W goods segment with a market share of ~85%....

ICICI Securities Ltd | Retail Equity Research Greaves Cotton (GCL) reported Q4FY16 results that were below our estimates. Key disappointment came in from muted revenue growth,...

With the exit of the international power product/systems business, we expect CG to be EBITDA and PAT positive on consolidated basis in FY18E. We reiterate BUY on CG with an SOTP-based TP of Rs 178/sh (Rs 174 earlier).

Background: Greaves Cotton Limited (GCL) is one of India's premier engineering companies with a product based business model. The company was originally founded in 1859 and was later acquired by Thapar group in 1947. It is primarily engaged in manufacture of diesel, petrol and kerosene based engines for automobiles, farm/agri equipments, power gensets and other industrial & construction equipments. GCL is the market leader in the...