Brokerage house Emkay Global Financial Services is bullish on Greaves Cotton and has recommended buy rating on the stock with a target price of Rs 100 in its July 15, 2013 research report.
Emkay's research report on Greaves Cotton
Auto engines on overdrive - (1) Changes in last mile goods transport, both 3-W and 4-W & (2) inroads in 4-W passenger and alternative fuels. Expect 13 percent volume growth
Efforts underway to strengthen agri equipment, gensets and infrastructure businesses; it concurrently promises robust growth in ensuing years
Attractive financial matrix; ROIC of +35 percent, FCF generation of Rs2.7 bn in FY13-15E period, dividend payout of 35-40 percent and dividend yield of 5 percent
Greaves is trading at 40 percent discount to capital goods sector & 15-30 percent discount to auto-ancillaries. Valuations are attractive; retain BUY with price target of Rs100/Share, says Emkay Global Financial Services research report.
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