Buy Greaves Cotton; target of Rs 183: Sharekhan

Sharekhan's research report on Greaves Cotton

EV business is expected to revive from Q4FY23 onwards on expectation of recovery in production. Greaves is building a performance-based EV business, which can sail thorough even without subsidy support. Acquisition of high-margin Excel business would improve overall profitability and revenue mix. The stock trades at a P/E multiple of 15.7x and EV/EBITDA multiple of 6.5x its FY2025E estimates.

Outlook

We reiterate a Buy rating on the Greaves Cotton Ltd (Greaves) on expectation of (1) sequential improvement in its performance in Q4, (2) fall in operating losses in EV business and (3) margin accretive acquisition of Excel’s business.

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Greaves Cotton - 16 -03 - 2023 - khan