Greaves Cotton Ltd. (GREAVESCOT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kirl.Pneumatic

Swaraj Engines

Oswal Pumps

GK Energy

Ingersoll-Rand

Greaves Cotton

KSB

Powerica Ltd

Roto Pumps

Shakti Pumps

Yuken India

Why is Greaves Cotton Ltd. ?

The company is Net-Debt Free

Healthy long term growth as Operating profit has grown by an annual rate 46.56%

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 9.88%
PAT(9M) Higher at Rs 82.75 Cr
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 563.53 cr

With ROE of 8.1, it has a Fair valuation with a 3.5 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.15%, its profits have risen by 89.5% ; the PEG ratio of the company is 0.5

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.8% over the previous quarter and collectively hold 5.53% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating performance in long term as well as near term

Along with generating 9.15% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Greaves Cotton should be less than 10%
Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Greaves Cotton for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Greaves Cotton

9.15%

0.23

40.31%

Sensex

-6.17%

-0.47

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.03%

EBIT Growth (5y)

46.56%

EBIT to Interest (avg)

1.68

Debt to EBITDA (avg)

1.65

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.86

Tax Ratio

69.29%

Dividend Payout Ratio

79.62%

Pledged Shares

Institutional Holding

5.53%

ROCE (avg)

3.24%

ROE (avg)

6.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.49

EV to EBIT

36.50

EV to EBITDA

19.89

EV to Capital Employed

3.96

EV to Sales

1.38

PEG Ratio

0.48

Dividend Yield

0.93%

ROCE (Latest)

10.85%

ROE (Latest)

8.11%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

ROCE(HY)

Highest at 9.88%

PAT(9M)

Higher at Rs 82.75 Cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 563.53 cr

NET SALES(Q)

At Rs 1,000.26 cr has Grown at 22.8% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 68.17 cr.

PBT LESS OI(Q)

At Rs 30.51 cr has Grown at 38.2% (vs previous 4Q average

-6What is not working for the Company

PAT(Q)

At Rs 23.81 cr has Fallen at -18.1% (vs previous 4Q average

EPS(Q)

Lowest at Rs 0.97

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Here's what is working for Greaves Cotton

Net Sales - Quarterly

Highest at Rs 1,000.26 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,000.26 cr has Grown at 22.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 814.80 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 68.17 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 30.51 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 30.51 cr has Grown at 38.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 22.08 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 563.53 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Greaves Cotton

Profit After Tax (PAT) - Quarterly

At Rs 23.81 cr has Fallen at -18.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 29.08 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.97

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)