Positive on Greaves Cotton: Hemang Jani, Sharekhan

Hemang Jani, Senior Vice President, Sharekhan, in a chat with ET Now talks about Greaves Cotton.

With respect to Greaves Cotton, we do have capacity expansions. Currently it is based at 351. What would we do with the stock at this level?

We have been positive on Greaves Cotton for a while. Considering the revival in the auto industry and the new capacity that they have planned - the construction equipment segment is doing extremely well - we think that operating leverage would come into play.

The stock is available at very attractive valuations of about 9.5-10 times next year. The earnings growth is likely to be about 35-40%. So we are extremely positive on Greaves Cotton.