Buy Greaves Cotton, target price Rs 170: ICICI Direct

ICICI Direct has buy call on Greaves Cotton with a target price of Rs 170. The current market price of Greaves Cotton Ltd. is Rs 155.65.

Time period given by analyst is 3 months when Greaves Cotton Ltd. price can reach defined target.

Greaves Cotton Ltd., incorporated in the year 1922, is a Mid Cap company (having a market cap of Rs 3603.36 Crore) operating in Engineering sector.


Greaves Cotton Ltd. key Products/Revenue Segments include Engines, Service Income, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 379.65 Crore, up 63.56 % from last quarter Total Income of Rs 232.12 Crore and up 14.70 % from last year same quarter Total Income of Rs 330.99 Crore. Company reported net profit after tax of Rs -23.29 Crore in latest quarter.


Investment Rationale
The stock has seen a healthy triangular base formation in the last three months above the long term 52 weeks EMA (currently at Rs 132).

Promoter/FII Holdings
Promoters held 55.63 per cent stake in the company as of 30-Sep-2021, while FIIs owned 3.98 per cent, DIIs 9.2 per cent.