Greaves Cotton Ltd share Price Today

The capital goods sector has been resilient post multi year breakout. Within the space, Greaves Cotton looks lucrative at current juncture as stock witnessed a faster pace of retracement wherein past five months decline (₹ 164-118) was completely retraced in just two months, highlighting structural turnaround. Thereby offering fresh entry opportunity to ride next leg of up move  
 
Strong base formation bodes well for next leg of up move : Structurally, stock has undergone strong base formation before witnessing buying demand from long term 200 weeks EMA coincided with regression line (placed around ₹ 120-130) which has been held on multiple occasions over past two years, highlighting robust price structure

We expect, stock to accelerate upward momentum and gradually head towards ₹ 180 in coming months as it is 50% retracement of CY22-23 decline (₹ 258-118) coincided with September 2022 high of ₹ 184

•Greaves Cotton (Greaves) is a leading diversified engineering company with a presence in automotive, non-automotive, aftermarket, retail, electric mobility solution and finance. Greaves Engineering contributes 38% of FY23 revenue, Greaves Retail contributes 20% of FY23 revenue. E-mobility is expected to drive future growth (~42% of FY23 revenue)

 

Greaves standalone revenue came in at ₹ 436.8 crore (Vs. I-Direct estimate of ₹ 411.2 crore) grew by 15.3% on a YoY basis. For FY23 revenues came at ₹ 1,549.7 crores which grew by 31.6% on YoY basis. Consolidated revenue grew by 33.2% YoY to ₹ 826.9 crore & for FY23 it came at ₹2699.4 crores grew by 57.9% on YoY. The engine segment revenues came in at ₹ 400.9 crore, grew by 15% YoY. On the other hand, E-Mobility segment revenue grew by 61.6% to ₹ 383.3 crore with a volume of 39,000 units. For FY23 E-Mobility segment reported revenues of ₹1124.3 which grew strongly by 115.3% on YoY basis.
 
It reported Standalone EBITDA of ₹ 51.8 crore (Vs. I-Direct estimate of ₹ 44.8 crore) Vs ₹ 29.1 crores in Q4FY22, with EBITDA margin of 11.9% expansion of 417bps YoY. For FY23 it reported EBITDA of ₹ 151.4 crores grew by 238.7%. The company has reported standalone PAT of ₹ 29.5 crore (Vs. I-Direct estimate of ₹ 29.4 crore) grew by 75.1% YoY basis. For FY23 PAT came at ₹ 115.1 crores grew by 325.2% on YoY basis.

Transformation strategy is working well for the company as E-mobility business registered strong growth, Going forward key monitorable would be the pace of new launches, ramp up in volumes and how competition panning up.

Auto Parts & Equipment company Greaves Cotton announced FY24 results:

Financial Highlights:

• Standalone Revenue for GCL for FY24 stood at Rs 1,779 crore, a growth of 15% YoY.
• Standalone EBITDA for FY24 stood at Rs 232 crore, a growth of 53% YoY, and an improvement in margins by 325 bps YoY
• GCL Proposed final Dividend of 100%
• Standalone decadal high PBT of Rs 366 crore
• New Acquisition Excel's revenue stands at Rs 263 crore, a growth of 41% YoY, with robust margins of 31%
• Greaves Electric Mobility's consolidated revenue stands at Rs 612 crore, with a strong focus on new product launches and the path to profitability

Commenting on the Company's performance, Nagesh Basavanhalli, Non-Executive Vice Chairman of Greaves Cotton, said, "Our transformation journey from diesel engines to a multifaceted organisation embracing a fuel-agnostic approach, bringing us closer to our customers. The Company's performance underscores the resilience of our diversification strategy. Collaborating with Excel has unlocked new capabilities and growth avenues for Greaves Engineering. Our evolution from a B2B to a B2B B2C company has been fuelled by the robustness of our strategy, contributing to our growth. This transformation has been pivotal, instilling confidence to deliver sustainable value to customers and shareholders."

Akhila Balachandar, CFO, Greaves Cotton, added, "The financial results highlight the exceptional performance of Greaves Engineering & Excel, along with the impressive expansion of Greaves Retail. The launch of our new EV solutions business vertical has provided a solid foundation, and we're excited about the renewed interest in Greaves 3W on the NAB portal. The momentum we have established reinforces our confidence in our strategy, reaffirming our dedication to delivering sustainable value consistently."

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