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

GK Energy

Ingersoll-Rand

Kirl.Pneumatic

Greaves Cotton

Swaraj Engines

KSB

Powerica Ltd

Roto Pumps

Oswal 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 35.42%

Flat results in Jun 26

PBT LESS OI(Q) At Rs 16.11 cr has Fallen at -38.2% (vs previous 4Q average)
PAT(Q) At Rs 25.77 cr has Fallen at -11.2% (vs previous 4Q average)
OPERATING PROFIT TO NET SALES (Q) Lowest at 5.78%

With ROE of 8.1, it has a Fair valuation with a 3.1 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 -0.08%, its profits have risen by 28.8% ; the PEG ratio of the company is 1.5

Despite the size of the company, domestic mutual funds hold only 0.66% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

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, Medium Return

Absolute

Risk Adjusted

Volatility

Greaves Cotton

-0.53%

-0.03

44.56%

Sensex

-3.54%

-0.26

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.43%

EBIT Growth (5y)

35.42%

EBIT to Interest (avg)

3.25

Debt to EBITDA (avg)

1.65

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.86

Tax Ratio

79.18%

Dividend Payout Ratio

43.48%

Pledged Shares

Institutional Holding

5.54%

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

3.14

EV to EBIT

33.32

EV to EBITDA

17.89

EV to Capital Employed

3.55

EV to Sales

1.16

PEG Ratio

1.45

Dividend Yield

1.04%

ROCE (Latest)

10.85%

ROE (Latest)

8.11%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

13What is working for the Company

OPERATING CF(Y)

Highest at Rs 32.58 Cr

NET SALES(Latest six months)

At Rs 1,974.38 cr has Grown at 25.90%

ROCE(HY)

Highest at 9.88%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 563.53 cr

-13What is not working for the Company

PBT LESS OI(Q)

At Rs 16.11 cr has Fallen at -38.2% (vs previous 4Q average

PAT(Q)

At Rs 25.77 cr has Fallen at -11.2% (vs previous 4Q average

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.78%

NON-OPERATING INCOME(Q)

is 40.44 % of Profit Before Tax (PBT

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Here's what is working for Greaves Cotton

Operating Cash Flow - Annually

Highest at Rs 32.58 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Latest six months

At Rs 1,974.38 cr has Grown at 25.90%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (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 Before Tax less Other Income (PBT) - Quarterly

At Rs 16.11 cr has Fallen at -38.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 26.07 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 25.77 cr has Fallen at -11.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 29.02 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 5.78%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 16.11 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 40.44 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT