Greaves Cotton Experiences Valuation Grade Change Amidst Diverging Industry Metrics

Greaves Cotton, a small-cap player in the compressors, pumps, and diesel engines sector, has recently undergone a valuation adjustment. The company's financial metrics reveal a PE ratio of 45.64 and an EV to EBITDA ratio of 14.08, indicating a premium valuation relative to its peers. The price-to-book value stands at 0.34, while the EV to sales ratio is recorded at 0.87. Additionally, Greaves Cotton has a PEG ratio of 0.46 and a dividend yield of 0.98%.
In terms of return performance, Greaves Cotton has faced challenges, with a year-to-date decline of 26.82%, contrasting with a 6.62% gain in the Sensex. Over the past year, the stock has shown a modest increase of 6.70%, while its three-year and five-year returns are 34.37% and 198.46%, respectively.

When compared to its peers, Greaves Cotton's valuation metrics highlight a significant divergence. Kirloskar Oil, for instance, presents a more attractive valuation profile with a PE ratio of 32.01, while Swaraj Engines shows a fair valuation with a PE of 26.71. This comparison underscores the varying market positions within the industry.