Arihant Capital recommended hold rating on Greaves Cotton with a target price of Rs 84 in its research report dated June 15, 2020.
Arihant Capital 's research report on Greaves Cotton
Greaves Cotton (GCL) reported weak set of numbers with revenue de-growth of 32% YoY was impacted due to decline in volumes amid auto slowdown and Covid-19 related lockdown. Decline in revenue and rise in cost due to BS-VI transition impacted operating performance of the company. EBITDA for the quarter declined by 56% YoY to Rs 306 mn while EBITDA margin contracted sharply by 475bps YoY to 8.5%. Adjusted PAT for the quarter fell by 70% YoY to Rs 151 mn.
We downgrade our rating to ‘Hold’ from ‘Accumulate’ with revised target price of Rs 84.
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