Fundamental Analysis of Greaves Cotton Ltd

About the Company - Greaves Cotton Ltd

Greaves Cotton Ltd. is a Public Limited Listed company incorporated on 29/03/1922 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1922PLC000987 and registration number is 000987. Currently Company is involved in the business activities of Manufacture of power generators (except battery charging alternators for internal combustion engines), motor generator sets (except turbine generator set units). Company’s Total Operating Revenue is Rs. 1177.59 Cr. and Equity Capital is Rs. 46.30 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Engines	J-2, MIDC Industrial Area, Chikalthana, Aurangabad Maharashtra 431210	investorservices@greavescotton.com http://www.greavescotton.com

Management
Name	Position Held
Mr. Karan Thapar	Chairman
Mr. Nagesh Basavanhalli	Non Executive Vice Chairman
Dr. Arup Basu	Managing Director
Mr. Mangalath Unnikrishnan	Independent Director
Mr. Raja Venkataraman	Independent Director
Ms. Sree Patel	Independent Director
Mr. Ravi Kirpalani	Independent Director
Mr. Firdose Vandrevala	Independent Director

Basic Stock Data of Greaves Cotton Ltd

Last Updated: July 26, 2024, 10:38 pm

Market Cap	3,813 Cr.
Current Price	164
High / Low	177/112
Stock P/E	155
Book Value	62.1
Dividend Yield	1.22 %
ROCE	3.72 %
ROE	1.62 %
Face Value	2.00
PEG Ratio	-4.02

Data Source: screener.in

Greaves Cotton Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	495	520	229	374	486	621	660	699	514	827	569	727	665
Expenses	445	479	246	384	474	582	624	657	512	780	583	681	630
Operating Profit	49	42	-17	-10	13	39	36	42	2	47	-14	46	35
OPM %	10%	8%	-7%	-3%	3%	6%	5%	6%	0%	6%	-3%	6%	5%
Other Income	-2	3	7	7	2	3	11	15	17	12	22	-365	62
Interest	1	1	1	1	1	2	6	2	2	1	2	2	2
Depreciation	15	16	15	15	14	15	14	14	13	15	17	19	20
Profit before tax	31	27	-25	-19	-1	26	27	40	3	43	-10	-341	74
Tax %	32%	50%	11%	-23%	-831%	35%	40%	20%	279%	36%	-139%	-10%	39%
Net Profit	21	14	-22	-23	-6	17	16	32	-6	27	-25	-375	46
EPS in Rs	0.90	0.59	-0.97	-1.01	-0.27	0.72	0.69	1.25	0.28	1.15	-0.22	-8.22	2.50

Last Updated: July 16, 2024, 1:31 pm

Greaves Cotton Ltd Quarterly Chart

Greaves Cotton Ltd Profit & Loss

Last Updated: July 10, 2024, 5:34 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	1,789	1,906	1,736	1,698	1,616	1,634	1,792	2,015	1,911	1,500	1,710	2,699	2,788
Expenses	1,553	1,666	1,593	1,505	1,413	1,395	1,537	1,743	1,701	1,421	1,685	2,573	2,674
Operating Profit	237	241	143	192	203	240	255	272	210	80	25	127	114
OPM %	13%	13%	8%	11%	13%	15%	14%	14%	11%	5%	1%	5%	4%
Other Income	64	12	82	-31	138	56	93	24	25	-26	20	55	-269
Interest	4	2	5	2	1	1	1	4	5	7	5	12	7
Depreciation	42	41	45	48	46	47	52	52	61	60	59	57	71
Profit before tax	255	211	175	111	294	249	295	240	169	-14	-19	113	-234
Tax %	26%	30%	30%	25%	32%	27%	32%	32%	25%	-36%	-83%	38%
Net Profit	189	148	123	84	201	181	202	163	127	-19	-35	70	-327
EPS in Rs	7.74	6.06	5.05	3.42	8.23	7.40	8.28	6.74	5.59	-0.81	-1.52	3.37	-4.79
Dividend Payout %	28%	26%	26%	73%	67%	74%	66%	59%	0%	-25%	-13%	27%

Greaves Cotton Ltd Profit & Loss Yearly Chart

Greaves Cotton Ltd Growth

Compounded Sales Growth
10 Years:	4%
5 Years:	5%
3 Years:	21%
TTM:	-2%

Compounded Profit Growth
10 Years:	-14%
5 Years:	-31%
3 Years:	-11%
TTM:	-68%

Stock Price CAGR
10 Years:	3%
5 Years:	2%
3 Years:	-1%
1 Year:	18%

Return on Equity
10 Years:	10%
5 Years:	4%
3 Years:	2%
Last Year:	2%

Last Updated: July 25, 2024, 5:09 am

Greaves Cotton Ltd Balance Sheet

Last Updated: July 10, 2024, 5:34 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	49	49	49	49	49	49	49	49	46	46	46	46	46
Reserves	582	684	771	774	842	876	916	920	753	736	703	1,540	1,328
Borrowings	33	16	0	0	0	0	0	11	28	20	257	28	88
Other Liabilities	428	442	383	301	286	325	381	474	413	477	629	1,103	1,192
Total Liabilities	1,092	1,191	1,203	1,124	1,177	1,250	1,346	1,454	1,240	1,280	1,635	2,718	2,654
Fixed Assets	331	373	370	326	283	292	278	339	380	372	364	369	787
CWIP	20	8	5	8	24	15	28	72	69	75	82	83	36
Investments	94	92	181	293	362	411	506	420	3	1	16	123	296
Other Assets	647	718	647	497	507	532	535	624	788	832	1,174	2,143	1,535
Total Assets	1,092	1,191	1,203	1,124	1,177	1,250	1,346	1,454	1,240	1,280	1,635	2,718	2,654

Greaves Cotton Ltd Reserves and Borrowings Chart

Greaves Cotton Ltd Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	108	155	225	230	114	280	145	102	147	-56	-135	-153
Cash from Investing Activity	-59	-108	-179	-70	36	-97	38	255	-108	-238	-758	246
Cash from Financing Activity	-78	-55	-60	-166	-148	-162	-174	-241	-20	210	889	-32
Net Cash Flow	-29	-8	-14	-6	2	20	10	116	19	-84	-4	61

Greaves Cotton Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	52	70	68	50	45	60	51	62	49	51	40	22
Inventory Days	53	50	50	34	38	45	33	35	54	59	56	40
Days Payable	57	65	57	46	68	76	82	86	83	120	110	82
Cash Conversion Cycle	48	55	61	37	15	29	2	12	20	-11	-14	-19
Working Capital Days	34	50	53	33	44	39	22	18	26	-3	7	38
ROCE %	34%	30%	21%	21%	28%	23%	23%	24%	18%	3%	-1%	9%

Greaves Cotton Ltd Financial Efficiency Indicators Chart

Greaves Cotton Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	55.63%	55.63%	55.62%	55.55%	55.54%	55.54%	55.54%	55.74%	55.87%	56.00%	56.00%	56.00%
FIIs	4.54%	3.81%	3.84%	3.13%	3.47%	3.90%	4.15%	4.54%	4.94%	4.57%	3.18%	2.81%
DIIs	11.73%	9.36%	9.19%	9.52%	8.58%	7.68%	5.10%	4.22%	3.63%	3.42%	3.44%	3.75%
Public	28.10%	31.20%	31.35%	31.79%	32.41%	32.86%	35.20%	35.50%	35.56%	35.99%	37.36%	37.43%
No. of Shareholders	1,41,586	1,86,523	1,92,756	2,12,933	2,21,563	2,12,832	2,17,707	2,21,327	2,18,641	2,18,731	2,11,694	2,05,042

Greaves Cotton Ltd Shareholding Pattern Chart

No. of Greaves Cotton Ltd Shareholders

Greaves Cotton Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
L&T Focused Equity Fund	1,605,900	2.57	24.28	98,933	2024-07-24	1523.22%
Aditya Birla Sun Life Manufacturing Equity Fund	529,933	0.95	6.66	98,933	2024-07-24	435.65%
Motilal Oswal Nifty Microcap 250 Index Fund	98,933	0.27	1.24	98,933	2024-07-24	0%
Groww Nifty Total Market Index Fund	226	0.01	0	98,933	2024-07-24	-99.77%

Greaves Cotton Ltd ROCE Trend

Greaves Cotton Ltd EPS Trend

Greaves Cotton Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	-5.83	3.37	-1.53	-0.81	5.40
Diluted EPS (Rs.)	-5.83	3.35	-1.53	-0.81	5.40
Cash EPS (Rs.)	-12.15	5.75	1.12	1.80	8.14
Book Value[Excl.RevalReserv]/Share (Rs.)	72.16	84.94	32.37	33.85	34.55
Book Value[Incl.RevalReserv]/Share (Rs.)	72.16	84.94	32.37	33.85	34.55
Revenue From Operations / Share (Rs.)	113.50	116.53	73.85	64.90	82.65
PBDIT / Share (Rs.)	6.73	8.66	2.14	3.81	9.96
PBIT / Share (Rs.)	3.10	6.21	-0.39	1.19	7.32
PBT / Share (Rs.)	-11.73	5.17	-0.72	-0.59	7.31
Net Profit / Share (Rs.)	-15.79	3.31	-1.42	-0.81	5.50
NP After MI And SOA / Share (Rs.)	-5.83	3.37	-1.52	-0.81	5.59
PBDIT Margin (%)	5.93	7.42	2.89	5.86	12.05
PBIT Margin (%)	2.72	5.32	-0.53	1.83	8.86
PBT Margin (%)	-10.33	4.43	-0.98	-0.91	8.84
Net Profit Margin (%)	-13.91	2.83	-1.91	-1.25	6.66
NP After MI And SOA Margin (%)	-5.13	2.89	-2.06	-1.25	6.75
Return on Networth / Equity (%)	-9.39	4.91	-4.71	-2.39	16.17
Return on Capital Employeed (%)	4.04	7.15	-0.94	3.33	19.96
Return On Assets (%)	-5.48	2.86	-2.14	-1.45	10.34
Long Term Debt / Equity (X)	0.00	0.00	0.22	0.00	0.00
Total Debt / Equity (X)	0.03	0.00	0.31	0.00	0.01
Asset Turnover Ratio (%)	1.01	1.24	0.88	1.03	1.33
Current Ratio (X)	1.72	2.30	1.53	1.56	1.78
Quick Ratio (X)	1.32	1.99	1.24	1.18	1.30
Inventory Turnover Ratio (X)	6.87	9.24	4.72	4.68	7.33
Dividend Payout Ratio (NP) (%)	-15.43	5.93	-13.08	0.00	0.00
Dividend Payout Ratio (CP) (%)	-41.03	3.43	19.71	0.00	0.00
Earning Retention Ratio (%)	115.43	94.07	113.08	0.00	0.00
Cash Earning Retention Ratio (%)	141.03	96.57	80.29	0.00	0.00
Interest Coverage Ratio (X)	16.93	17.15	9.28	12.70	45.42
Interest Coverage Ratio (Post Tax) (X)	-2.42	8.62	-4.71	3.26	25.17
Enterprise Value (Cr.)	2902.76	2768.38	4209.99	2677.97	1430.19
EV / Net Operating Revenue (X)	1.10	1.03	2.46	1.78	0.74
EV / EBITDA (X)	18.58	13.81	84.96	30.42	6.21
MarketCap / Net Operating Revenue (X)	1.11	1.08	2.58	1.97	0.84
Retention Ratios (%)	115.43	94.06	113.08	0.00	0.00
Price / BV (X)	2.04	1.84	5.90	3.78	2.02
Price / Net Operating Revenue (X)	1.11	1.08	2.58	1.97	0.84
EarningsYield	-0.04	0.02	-0.01	-0.01	0.08

Greaves Cotton Ltd Profitability Ratios (%)

Greaves Cotton Ltd Liquidity Ratios

Greaves Cotton Ltd Liquidity Ratios (%)

Greaves Cotton Ltd Interest Coverage Ratios (%)

Greaves Cotton Ltd Valuation Ratios

Fair Value

Fair Value: 157.84

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 3.76% compared to the current price 164

Intrinsic Value: 97.05

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 40.83% compared to the current price 164

Last 5 Year EPS CAGR: -38.51%

*Investments are subject to market risks

Strength and Weakness of Greaves Cotton Ltd Stock

Strength	Weakness
The stock has a high average ROCE of 19.42%, which is a positive sign. The company has higher reserves (909.08 cr) compared to borrowings (36.75 cr), indicating strong financial stability. The company has shown consistent growth in sales (1.23 cr) and profit (141.92 cr) over the years.	The stock has a high average Working Capital Days of 30.08, which may not be favorable. The stock has a high average Cash Conversion Cycle of 19.58, which may not be favorable.

FAQ

What is the latest fair value of Greaves Cotton Ltd?

The latest fair value of Greaves Cotton Ltd is ₹157.84.

What is the Market Cap of Greaves Cotton Ltd?

The Market Cap of Greaves Cotton Ltd is 3,813 Cr..

What is the current Stock Price of Greaves Cotton Ltd as on 26 July 2024?

The current stock price of Greaves Cotton Ltd as on 26 July 2024 is 164.

What is the High / Low of Greaves Cotton Ltd stocks in FY 2024?

In FY 2024, the High / Low of Greaves Cotton Ltd stocks is 177/112.

What is the Stock P/E of Greaves Cotton Ltd?

The Stock P/E of Greaves Cotton Ltd is 155.

What is the Book Value of Greaves Cotton Ltd?

The Book Value of Greaves Cotton Ltd is 62.1.

What is the Dividend Yield of Greaves Cotton Ltd?

The Dividend Yield of Greaves Cotton Ltd is 1.22 %.

What is the ROCE of Greaves Cotton Ltd?

The ROCE of Greaves Cotton Ltd is 3.72 %.

What is the ROE of Greaves Cotton Ltd?

The ROE of Greaves Cotton Ltd is 1.62 %.

What is the Face Value of Greaves Cotton Ltd?

The Face Value of Greaves Cotton Ltd is 2.00.