LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Markets News

Greaves Cotton share price: Sharekhan maintains Buy rating with revised price target of Rs 170

Sharekhan interacted with the management of Greaves Cotton to take a deep dive into the company's new transformative business goals. Greaves Cotton has expanded its three-wheeler (3W) diesel engine business to last mile mobility and has moved from one product/application/ fuel to multi-product/application/clean-tech focused businesses.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Greaves Cotton share price: Sharekhan maintains Buy rating with revised price target of Rs 170
Greaves Cotton has also increased its value from moving closer to customers by increasing retail focus. Greaves Cotton has also introduced a new range of products: Image taken from companies website
Reported By: ZeeBiz WebTeam
Written By: Rahul Kamdar
Edited By: Harish Dugh
Updated: Fri, Mar 05, 2021
10:03 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Greaves Cotton: Sharekhan maintains Buy rating with the revised price target of Rs 150 Greaves Cotton: Sharekhan maintains Buy rating with the revised price target of Rs 150
Greaves Care, TVS Motors join hands for this service - Check how customers will benefit Greaves Care, TVS Motors join hands for this service - Check how customers will benefit
Stocks in Focus on June 27: CCD, Reliance Infra to Novartis; here are 5 Newsmakers of the Day Stocks in Focus on June 27: CCD, Reliance Infra to Novartis; here are 5 Newsmakers of the Day
Stocks in Focus on May 29: GAIL, Greaves Cotton to VRL Logistics; here are the 5 newsmakers of the day Stocks in Focus on May 29: GAIL, Greaves Cotton to VRL Logistics; here are the 5 newsmakers of the day
Greaves Cotton will introduce BSVI complaint engines soon: Neetu Kashiramka, CFO Greaves Cotton will introduce BSVI complaint engines soon: Neetu Kashiramka, CFO

Sharekhan interacted with the management of Greaves Cotton to take a deep dive into the company's new transformative business goals. Greaves Cotton has expanded its three-wheeler (3W) diesel engine business to last mile mobility and has moved from one product/application/ fuel to multi-product/application/clean-tech focused businesses. Greaves Cotton share price today is Rs 141, up Rs 1.5 or 1.1%.

Greaves Cotton has also increased its value from moving closer to customers by increasing retail focus. Greaves Cotton has also introduced a new range of products and worked on focussed strategy to re-organise group businesses into five divisions, viz. automotive, non-automotive, e-mobility, retail, and finance business. 

See Zee Business Live TV Streaming Below:

Greaves Cotton started the transformation in FY2018, which has started to reap benefits. The company has incubated multi-businesses in-house, which includes non-auto engines, electric two wheelers (e-2W), e-rick, mega/smart gensets, Greaves care (retail services arm), and multi brand spares divisions. The performance, acceptance, and success of new businesses have aspired Greaves to take bigger strides and expand businesses. Sharekhan continues to maintain our positive stance on Greaves because of its timely investments in the e-mobility business.

Greaves Cotton acquired Ampere in 2018 and now holds an 81.2% stake. Through its subsidiary Ampere, Greaves has signed an MOU with Tamil Nadu Government to set up an e-mobility manufacturing facility at Ranipet, with a proposed investment plan of Rs. 700 crore to build capacity of producing one million e-2Ws in a phased manner over a period of 10 years. The plant is expected to be operational in FY2021 with an initial installed capacity of 100000 units of e-2Ws.

Greaves Cotton has ramped up its e-mobility business at a much faster pace than we had anticipated earlier. Sharekhan believes Greaves is well positioned to benefit from the government’s push towards fast adoption of electric vehicles (EVs). Besides, incentives under FAME-II (Faster Adoption and Manufacturing of EVs) scheme, and the government’s ‘Go Electric’ media campaign to spread awareness of the benefits of e-mobility and EV charging infrastructure. Further, the FAME-II scheme is focussed on E-2Ws and E-3Ws, with 52% subsidies provided under the scheme that will benefit Greaves Cotton.

Greaves Cotton other new businesses have also immense capability to grow faster. Greaves’ progress in the non-auto engines division is aspiring, where the company is expanding to new sectors on existing capabilities and, hence, opening doors to new sectors. Given improved insights on new businesses and expectations of improving 3W sales, we have raised our earnings estimates by 2.1% and 13.8% for FY2022E and FY2023E, respectively.

Sharekhan expects Greaves Cotton earnings to report a robust 80.3% CAGR during FY2021E-FY2023E, driven by 24.4% revenue CAGR and a 580-bps improvement in EBITDA margin. Greaves Cotton also has a history of a strong dividend pay-out ratio of 40%-60%, which implies a dividend yield of 3%-3.5%. Hence, Sharekhan maintains Buy rating on the stock with a revised price target of Rs 170.

Greaves Cotton Key Risks:

Greaves Cotton performance can be impacted adversely if commodity prices continue to rise at the current pace. Moreover, prolonged delay in the 3W industry’s recovery can materially impact our revenue projections.

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Greaves Cotton
RELATED NEWS
Greaves Cotton: Sharekhan maintains Buy rating with the revised price target of Rs 150 Greaves Cotton: Sharekhan maintains Buy rating with the revised price target of Rs 150
Greaves Care, TVS Motors join hands for this service - Check how customers will benefit Greaves Care, TVS Motors join hands for this service - Check how customers will benefit
Stocks in Focus on June 27: CCD, Reliance Infra to Novartis; here are 5 Newsmakers of the Day Stocks in Focus on June 27: CCD, Reliance Infra to Novartis; here are 5 Newsmakers of the Day
Stocks in Focus on May 29: GAIL, Greaves Cotton to VRL Logistics; here are the 5 newsmakers of the day Stocks in Focus on May 29: GAIL, Greaves Cotton to VRL Logistics; here are the 5 newsmakers of the day
Greaves Cotton will introduce BSVI complaint engines soon: Neetu Kashiramka, CFO Greaves Cotton will introduce BSVI complaint engines soon: Neetu Kashiramka, CFO

LATEST NEWS

Gold Price Today 18-04-2021 – Be prepared to pay more for Gold, Silver; not just coronavirus, bullion prices may jump because of THIS reason

Medical Oxygen Supply – Centre takes this step to meet demand as cases rise to over 2.6 lakhs

Kisan Vikas Patra scheme offers 6.9 pct interest; Which other schemes are offering HIGHER INTERESTS - Know here

In chat with Anil Singhvi, analyst Vikas Sethi recommends Hikal, Biocon as top buys for big gains

Petrol, Diesel Price Today – Rates unchanged on Sunday in 4 metros; Do this to get latest prices in Delhi-NCR, Mumbai, Kolkata and Chennai

This Google feature called 'Trash Bin' to deleting files on Android 12

Gold imports rise by 22.58% to $34.6 bn in 2020-21

Stocks in Focus - ACC, Bajaj Consumer, ICICI Prudential, Crisil, Alok Industries - Q4 results to be announced on Monday; stocks likely to remain in focus

Flavoured milk taxable at 12% under GST: AAR rules in Amul dairy case

Facebook privacy breach - Lesson for Organisations to learn from this

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved