Buy Greaves Cotton: Mukadam

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Buy Greaves Cotton , says Shahina Mukadam , Varun Capital Markets.

Mukadam told CNBC-TV18, "Buy Greaves Cotton. I like the businesses for which the company is as of now, you have agriculture in which they supply pump sets, they also have a presence in auto where they sell their diesel engines to OEM suppliers for three wheelers and also now they are getting into four wheelers, they have recently tied up with Tata Motors to supply diesel engines for their vehicles and also for the construction equipment."

She further added, "The last year has been pretty bad for the company but it is being recovering. The last six months have been good and for the year this company can end very well with about Rs 22-25 earnings, which makes this stock pretty attractive at current levels. It is a very well managed company, so this is a good medium to longer term call."

At 12:29 hrs the share was quoting at Rs 295.00, down Rs 6.6, or 2.19% with volumes of 46,716 shares. On Friday the share closed up 3.61% or Rs 10.50 at Rs 301.60.

The company touched its 52 week high Rs 309.90 and 52 week low Rs 55.00 on 19 Mar, 2010 and 25 Mar, 2009, respectively. Currently, it is trading -4.81% below its 52-week high and 436.36% above its 52-week low.  Market capitalisation stands at Rs 1,440.82 crore.

The company's trailing 12-month (TTM) EPS was at Rs 17.24 per share. The stock's price-to-earnings (P/E) ratio was 17.11. The latest book value of the company is Rs 82.79 per share. At current value, the price-to-book value of the company was 3.56. The dividend yield of the company was 1.36%.