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 126.25.

Greaves Cotton., incorporated in the year 1922, is a Mid Cap company (having a market cap of Rs 2921.16 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
The brokerage reiterate a Buy rating on the Greaves Cotton (Greaves) on expectation of sequential improvement in its performance in Q4, fall in operating losses in EV business and margin accretive acquisition of Excel’s business.