ICICI Direct's research report on Greaves Cotton
Greaves Cotton’s (GCL) revenues were at Rs 476.8 crore, up 4.1% YoY, below our estimate of Rs 485.8 crore. EBITDA was flat at Rs 61.3 crore YoY (below our estimate of Rs 65.1 crore). EBITDA margins were at 12.8%, down 50 bps YoY, below our estimate of 13.4%. PAT came in at Rs 38.2 crore, down 4.2% YoY (below our estimate of Rs 45.2 crore). For Q1FY20, engines contributed 55% to revenues followed by aftermarket (22%) and others (23%).
Outlook
We value GCL base business at 16x FY21E EPS to arrive at Rs 145/share and revise our rating from HOLD to BUY.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!