Stock Performance and Market Context
On 24 Feb 2026, Greaves Cotton’s share price declined by 3.34% during the trading session, hitting an intraday low of Rs.154.95. This level represents the lowest price point for the stock in the past year, down sharply from its 52-week high of Rs.265.85. The stock has been on a losing streak for four consecutive days, cumulatively falling by 7.32% over this period. This underperformance is notable against the backdrop of the broader market, where the Sensex fell 1.27% to close at 82,236.01, still hovering within 4.77% of its own 52-week high of 86,159.02.
Greaves Cotton’s decline today also outpaced its sector, underperforming the Compressors, Pumps & Diesel Engines segment by 3.19%. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish trend. This technical positioning underscores the challenges the stock faces in regaining upward momentum.
Long-Term and Relative Performance
Over the last 12 months, Greaves Cotton has delivered a negative return of 39.82%, a stark contrast to the Sensex’s positive 10.47% gain over the same period. This divergence highlights the stock’s relative weakness within the broader market. Furthermore, the company has underperformed the BSE500 index across multiple time frames — one year, three years, and the recent three-month period — indicating sustained pressure on its market valuation.
Despite the company’s sizeable market presence, domestic mutual funds hold a modest stake of only 1.98%. Given that mutual funds typically conduct thorough research before investing, this relatively low holding may reflect cautious positioning or limited conviction in the stock’s near-term prospects at current price levels.
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Financial Metrics and Operational Highlights
Greaves Cotton maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure which typically reduces financial risk. The company has demonstrated robust long-term growth in operating profit, expanding at an annualised rate of 156.74%. This growth trajectory is supported by positive quarterly results over the last four consecutive quarters, reflecting consistent operational performance.
In the most recent half-year period, the company reported a Return on Capital Employed (ROCE) of 9.11%, its highest to date, signalling improved efficiency in capital utilisation. Quarterly net sales reached a peak of Rs.875.47 crore, while PBDIT (Profit Before Depreciation, Interest and Taxes) hit a quarterly high of Rs.62.12 crore. These figures suggest that despite the stock’s price weakness, the underlying business continues to generate expanding revenues and earnings.
Return on Equity (ROE) stands at 7.5%, which, combined with a Price to Book Value ratio of 2.7, indicates a fair valuation relative to the company’s equity base. However, the stock trades at a premium compared to its peers’ historical valuations, which may contribute to the cautious market stance.
Interestingly, while the stock price has declined by nearly 40% over the past year, the company’s profits have surged by 175.7%, resulting in a low PEG ratio of 0.2. This disparity between earnings growth and share price performance highlights a disconnect that may be influencing investor sentiment.
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Sector and Market Environment
The Compressors, Pumps & Diesel Engines sector has faced mixed performance in recent months, with some peers showing resilience while others have struggled to maintain momentum. Greaves Cotton’s current market cap grade is rated 3, reflecting a mid-tier valuation within its sector. The company’s Mojo Score stands at 40.0, with a recent downgrade from Hold to Sell on 3 Nov 2025, signalling a cautious outlook from the rating agency.
On the broader market front, the Sensex’s recent volatility and sharp declines have added pressure on stocks across sectors. Despite this, the Sensex remains relatively close to its 52-week high, suggesting that the weakness in Greaves Cotton is more company-specific than market-driven.
Summary of Key Price and Performance Indicators
• New 52-week low: Rs.154.95 (intraday low today)
• 52-week high: Rs.265.85
• 1-year return: -39.82%
• Sensex 1-year return: +10.47%
• Consecutive days of decline: 4
• Total decline over 4 days: -7.32%
• Debt to Equity ratio: 0 (average)
• ROCE (HY): 9.11%
• Quarterly Net Sales: Rs.875.47 crore (highest)
• Quarterly PBDIT: Rs.62.12 crore (highest)
• ROE: 7.5%
• Price to Book Value: 2.7
• PEG ratio: 0.2
• Mojo Score: 40.0 (Sell, downgraded from Hold on 3 Nov 2025)
While the stock’s recent price action reflects a challenging period, the company’s financial metrics reveal areas of strength, including strong profit growth and a clean balance sheet. The divergence between earnings performance and share price suggests that market participants remain cautious, possibly due to valuation concerns and relative underperformance compared to peers and benchmarks.
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