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Buy Greaves Cotton; target of Rs 145: ICICI Direct

ICICI Direct is bullish on Greaves Cotton has recommended buy rating on the stock with a target price of Rs 145 in its research report dated August 09, 2019.

August 12, 2019 / 01:43 PM IST
 
 
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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

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Broker Research
first published: Aug 12, 2019 01:43 pm

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