Buy Greaves Cotton, target price Rs 183: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Greaves Cotton with a target price of Rs 183. The current market price of Greaves Cotton is Rs 129.85.

Greaves Cotton, incorporated in the year 1922, is a Mid Cap company (having a market cap of Rs 3005.69 Crore) operating in Engineering sector.

Greaves Cotton key Products/Revenue Segments include Engines, Service Income, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 531.33 Crore, down -25.57 % from last quarter Total Income of Rs 713.83 Crore and up 8.47 % from last year same quarter Total Income of Rs 489.82 Crore. Company has reported net profit after tax of Rs -4.15 Crore in latest quarter.

The company’s top management includes Mr.Karan Thapar, Mr.Nagesh Basavanhalli, Dr.Arup Basu, Mr.Arvind Kumar Singhal, Mr.Kewal Handa, Ms.Sree Patel, Mr.Vinay Sanghi, Mr.Firdose Vandrevala, Mr.Ravi Kirpalani. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 23 Crore shares outstanding.

Investment Rationale
Performance of Greaves Cotton is expected to improve on revival of its EV business.

Promoter/FII Holdings
Promoters held 55.54 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.15 per cent, DIIs 5.1 per cent.