Greaves Cotton share may rise by 30% in next one year

The management of Greaves Cotton has commented that the company is at the start of a successful beginning of translating a future facing business strategy not only reflecting the market demand for its products but also positioning the company as an attractive investment destination to global investors. Recently, its flagship electric vehicle two wheeler product, Ampere rolled out its 50,000th unit from its assembly line at the company’s EV plant in Tamil Nadu from its commencement of operations. The E-Mobility registered sales volumes of 29000 units during the current quarter while Auto Engines volumes achieved its highest growth to nearly 40000 units. There has been a recent investment of Rs 1,171 crore by a global investor into Greaves Electric Mobility which should add significant momentum to expanding capability, the product portfolio and market reach, acquiring new technology and building leadership. Greaves Cotton Limited is a diversified engineering company and a leading manufacturer of CNG, Petrol and Diesel engines, generator sets, farm equipment, E-Mobility and aftermarket spares and services. It is a multi-product and multi-location company with a rich legacy and brand trust of over 162 years. The company today manufactures world-class products and solutions under various business units and is backed by comprehensive support from over 500 Retail centres and around 6300 smaller spare parts retail outlets across the country. In the mobility segment, the company manufactures around 4 lakh engines annually which is almost one engine per minute. In 2018, Greaves Cotton augmented its clean technology portfolio in the mobility segment by manufacturing the affordable electric vehicle two wheeler with the launch of Ampere Vehicles. Greaves is a leader in the auto engine segment having re-imagined the last mile mobility landscape in India with its wide array of Fuel Agnostic Powertrain Solutions. The BS VI compliant engines deliver high fuel efficiency, low TCO, superior performance and long-term assurance. The engines come in different fuel types of diesel, petrol, CNG/LPG and are suitable for passenger and cargo last mile small commercial vehicle applications. Greaves Automotive Engines are a popular choice among leading Automotive OEMs. In the non-engine segment, the company manufactures a wide range of industrial generator sets from 10 kVA to 2500 kVA powering critical installations and multifarious applications. In the agri segment, Greaves manufactures a wide range of pump sets, power tillers and light agri equipment that are powerful, reliable, low maintenance and fuel efficient. With the use of Greaves light agri equipment, mechanised farming has become easier enhancing productivity at every stage of the crop cycle with mechanised equipment to help farmers in a big way. The Q1FY23 financial highlights have been very good for the company as it posted its highest ever quarterly revenue of Rs 660 crore with the electric mobility segment contributing nearly 43% of the overall revenue. The electric vehicle two wheeler Ampere is one of the fasted growing e mobility brand with year on year growth of around 1800% and quarter on quarter growth of around 19%. On the other hand, non-auto engine segment registered year on year growth of 53% while the engine business registered year on year growth of 88%. EBITDA stood at Rs 38 crore for the first quarter of 2022-23. Most of equity analysts and portfolio fund managers are quite bullish on the company and expect the share price to appreciate by 30% in the next one year time frame.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.