Greaves Cotton's (GCL) standalone revenues came in at Rs. 457 crore, up 27.1% YoY, 4.6% QoQ. Consolidated revenue grew 35% YoY, 5.2% QoQ led by strong growth in the EV segment. Engine segment revenues came in at Rs. 425 crore, up 28% YoY, 3% QoQ. On the other hand, E-Mobility segment revenue grew 100% YoY, 19.5% QoQ to Rs. 69.09 crore. Standalone EBITDA increased 54.9% YoY to Rs. 47.3 crore and fell 12% QoQ. Standalone EBITDA margins improved 186 bps YoY to 10.4% whereas the same fell 196 bps on a QoQ basis. On a consolidated basis, EBIDTA came in at Rs. 41.59 crore, up 76% YoY, down 15% QoQ. Consolidated EBIDTA declined sequentially due to EBIT loss of Rs. 11.2 crore (exceptional item of Rs. 4.2 crore) in the EV segment. Adjusted PAT came in at Rs. 23.6 crore, up 71% YoY.
Valuation & Outlook
While new business segments look promising, the traditional engine segment continues to remain sluggish. We value GCL's base business at 18x FY23E EPS and Ampere at 2x FY23E Sales. We have a BUY rating (earlier HOLD) on the stock with a revised target price of Rs. 160 (earlier Rs. 90).
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GreavesCotton_Q4FY21.pdf
Shares of GREAVES COTTON LTD. was last trading in BSE at Rs.144.35 as compared to the previous close of Rs. 138.2. The total number of shares traded during the day was 168357 in over 1916 trades.
The stock hit an intraday high of Rs. 145.85 and intraday low of 137.85. The net turnover during the day was Rs. 24021442.