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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
EnginesJ-2, MIDC Industrial Area, Chikalthana, Aurangabad Maharashtra 431210investorservices@greavescotton.com
http://www.greavescotton.com
Management
NamePosition Held
Mr. Karan ThaparChairman
Mr. Nagesh BasavanhalliNon Executive Vice Chairman
Dr. Arup BasuManaging Director
Mr. Arvind Kumar SinghalIndependent Director
Mr. Raja VenkataramanIndependent Director
Ms. Sree PatelIndependent Director
Mr. Ravi KirpalaniIndependent Director
Mr. Firdose VandrevalaIndependent Director

Basic Stock Data of Greaves Cotton Ltd

Last Updated: June 17, 2024, 8:32 pm

Market Cap 3,101 Cr.
Current Price 134
High / Low176/112
Stock P/E
Book Value 62.1
Dividend Yield0.67 %
ROCE3.78 %
ROE3.23 %
Face Value 2.00
PEG Ratio0.00

Greaves Cotton Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales495520229374486621660699514827569727665
Expenses445479246384474582624657512780583681630
Operating Profit4942-17-1013393642247-144635
OPM %10%8%-7%-3%3%6%5%6%0%6%-3%6%5%
Other Income-2377231115171222-36562
Interest1111126221222
Depreciation15161515141514141315171920
Profit before tax3127-25-19-1262740343-10-34174
Tax %32%50%11%-23%-831%35%40%20%279%36%-139%-10%39%
Net Profit2114-22-23-6171632-627-25-37546
EPS in Rs0.900.59-0.97-1.01-0.270.720.691.250.281.15-0.22-8.222.50

Last Updated: June 7, 2024, 8:51 am

Greaves Cotton Ltd Quarterly Chart

Greaves Cotton Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,7891,9061,7361,6981,6161,6341,7922,0151,9111,5001,7102,6992,788
Expenses1,5531,6661,5931,5051,4131,3951,5371,7431,7011,4211,6852,5732,674
Operating Profit2372411431922032402552722108025127114
OPM %13%13%8%11%13%15%14%14%11%5%1%5%4%
Other Income641282-3113856932425-262055-269
Interest42521114575127
Depreciation42414548464752526160595771
Profit before tax255211175111294249295240169-14-19113-234
Tax %26%30%30%25%32%27%32%32%25%-36%-83%38%
Net Profit18914812384201181202163127-19-3570-327
EPS in Rs7.746.065.053.428.237.408.286.745.59-0.81-1.523.37-4.79
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:9%
3 Years:12%
TTM:12%
Compounded Profit Growth
10 Years:-6%
5 Years:-12%
3 Years:-14%
TTM:-47%
Stock Price CAGR
10 Years:4%
5 Years:-2%
3 Years:2%
1 Year:-1%
Return on Equity
10 Years:12%
5 Years:8%
3 Years:3%
Last Year:7%

Last Updated: April 15, 2024, 12:41 pm

Greaves Cotton Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital49494949494949494646464646
Reserves5826847717748428769169207537367031,5401,328
Borrowings3316000001128202572888
Other Liabilities4284423833012863253814744134776291,1031,192
Total Liabilities1,0921,1911,2031,1241,1771,2501,3461,4541,2401,2801,6352,7182,654
Fixed Assets331373370326283292278339380372364369787
CWIP20858241528726975828336
Investments94921812933624115064203116123296
Other Assets6477186474975075325356247888321,1742,1431,535
Total Assets1,0921,1911,2031,1241,1771,2501,3461,4541,2401,2801,6352,7182,654

Greaves Cotton Ltd Reserves and Borrowings Chart

Greaves Cotton Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 113108155225230114280145102147-56-135
Cash from Investing Activity -62-59-108-179-7036-9738255-108-238-758
Cash from Financing Activity -41-78-55-60-166-148-162-174-241-20210889
Net Cash Flow10-29-8-14-62201011619-84-4

Greaves Cotton Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days527068504560516249514022
Inventory Days535050343845333554595640
Days Payable57655746687682868312011082
Cash Conversion Cycle48556137152921220-11-14-19
Working Capital Days345053334439221826-3738
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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters55.63%55.63%55.62%55.55%55.54%55.54%55.54%55.74%55.87%56.00%56.00%56.00%
FIIs4.54%3.81%3.84%3.13%3.47%3.90%4.15%4.54%4.94%4.57%3.18%2.81%
DIIs11.73%9.36%9.19%9.52%8.58%7.68%5.10%4.22%3.63%3.42%3.44%3.75%
Public28.10%31.20%31.35%31.79%32.41%32.86%35.20%35.50%35.56%35.99%37.36%37.43%
No. of Shareholders1,41,5861,86,5231,92,7562,12,9332,21,5632,12,8322,17,7072,21,3272,18,6412,18,7312,11,6942,05,042

Greaves Cotton Ltd Shareholding Pattern Chart

No. of Greaves Cotton Ltd Shareholders

Greaves Cotton Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
L&T Focused Equity Fund1,605,9002.5724.2898,9332024-06-231523.22%
Aditya Birla Sun Life Manufacturing Equity Fund529,9330.956.6698,9332024-06-23435.65%
Motilal Oswal Nifty Microcap 250 Index Fund98,9330.271.2498,9332024-06-230%
Groww Nifty Total Market Index Fund2260.01098,9332024-06-23-99.77%

Greaves Cotton Ltd ROCE Trend

Greaves Cotton Ltd EPS Trend

Greaves Cotton Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-5.833.37-1.53-0.815.40
Diluted EPS (Rs.)-5.833.35-1.53-0.815.40
Cash EPS (Rs.)-12.155.751.121.808.14
Book Value[Excl.RevalReserv]/Share (Rs.)72.1684.9432.3733.8534.55
Book Value[Incl.RevalReserv]/Share (Rs.)72.1684.9432.3733.8534.55
Revenue From Operations / Share (Rs.)113.50116.5373.8564.9082.65
PBDIT / Share (Rs.)6.738.662.143.819.96
PBIT / Share (Rs.)3.106.21-0.391.197.32
PBT / Share (Rs.)-11.735.17-0.72-0.597.31
Net Profit / Share (Rs.)-15.793.31-1.42-0.815.50
NP After MI And SOA / Share (Rs.)-5.833.37-1.52-0.815.59
PBDIT Margin (%)5.937.422.895.8612.05
PBIT Margin (%)2.725.32-0.531.838.86
PBT Margin (%)-10.334.43-0.98-0.918.84
Net Profit Margin (%)-13.912.83-1.91-1.256.66
NP After MI And SOA Margin (%)-5.132.89-2.06-1.256.75
Return on Networth / Equity (%)-9.394.91-4.71-2.3916.17
Return on Capital Employeed (%)4.047.15-0.943.3319.96
Return On Assets (%)-5.482.86-2.14-1.4510.34
Long Term Debt / Equity (X)0.000.000.220.000.00
Total Debt / Equity (X)0.030.000.310.000.01
Asset Turnover Ratio (%)1.010.980.881.031.33
Current Ratio (X)1.722.301.531.561.78
Quick Ratio (X)1.321.991.241.181.30
Inventory Turnover Ratio (X)6.875.734.724.687.33
Dividend Payout Ratio (NP) (%)0.005.93-13.080.000.00
Dividend Payout Ratio (CP) (%)0.003.4319.710.000.00
Earning Retention Ratio (%)0.0094.07113.080.000.00
Cash Earning Retention Ratio (%)0.0096.5780.290.000.00
Interest Coverage Ratio (X)16.9317.159.2812.7045.42
Interest Coverage Ratio (Post Tax) (X)-2.428.62-4.713.2625.17
Enterprise Value (Cr.)2902.762768.384209.992677.971430.19
EV / Net Operating Revenue (X)1.101.032.461.780.74
EV / EBITDA (X)18.5813.8184.9630.426.21
MarketCap / Net Operating Revenue (X)1.111.082.581.970.84
Retention Ratios (%)0.0094.06113.080.000.00
Price / BV (X)2.041.845.903.782.02
Price / Net Operating Revenue (X)1.111.082.581.970.84
EarningsYield-0.040.02-0.01-0.010.08

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: 30.29

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: 77.40% compared to the current price 134

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 18.62

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: 86.10% compared to the current price ₹134

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -38.51%

*Investments are subject to market risks

Strength and Weakness of Greaves Cotton Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 19.42%, which is a positive sign.
  2. The company has higher reserves (878.85 cr) compared to borrowings (37.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.23 cr) and profit (141.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 30.08, which may not be favorable.
  2. 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 ₹30.29.

What is the Market Cap of Greaves Cotton Ltd?

The Market Cap of Greaves Cotton Ltd is 3,101 Cr..

What is the current Stock Price of Greaves Cotton Ltd as on 22 June 2024?

The current stock price of Greaves Cotton Ltd as on 22 June 2024 is ₹134.

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 176/112.

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

The Stock P/E of Greaves Cotton Ltd is .

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 0.67 %.

What is the ROCE of Greaves Cotton Ltd?

The ROCE of Greaves Cotton Ltd is 3.78 %.

What is the ROE of Greaves Cotton Ltd?

The ROE of Greaves Cotton Ltd is 3.23 %.

What is the Face Value of Greaves Cotton Ltd?

The Face Value of Greaves Cotton Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Greaves Cotton Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE