ScoreWhy is Greaves Cotton Ltd. ?
1
The company is Net-Debt Free
2
Healthy long term growth as Operating profit has grown by an annual rate 46.56%
3
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
4
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
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
6
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 ReportHow 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 StructureQuality 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
0
Institutional Holding
5.53%
ROCE (avg)
3.24%
ROE (avg)
6.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
60
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%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What 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
Loading Valuation Snapshot...
Here's what is working for Greaves Cotton
Net Sales - Quarterly
Highest at Rs 1,000.26 cr
in the last five quartersMOJO 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 CrMOJO 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 quartersMOJO 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 quartersMOJO 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 CrMOJO 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 periodsMOJO 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 CrMOJO 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 quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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