ScoreWhy is Greaves Cotton Ltd. ?
1
Flat results in Jun 26
- PAT(Q) At Rs 25.77 cr has Fallen at -11.2% (vs previous 4Q average)
- OPERATING PROFIT TO NET SALES (Q) Lowest at 5.78%
- PBT LESS OI(Q) Lowest at Rs 16.11 cr.
2
Despite the size of the company, domestic mutual funds hold only 0.66% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
3
Below par performance in long term as well as near term
- Along with generating -11.69% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Greaves Cotton should be less than 10%
- Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Greaves Cotton for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Greaves Cotton
-1.05%
-0.27
43.63%
Sensex
-11.8%
-0.48
13.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.43%
EBIT Growth (5y)
35.42%
EBIT to Interest (avg)
3.25
Debt to EBITDA (avg)
1.65
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
1.86
Tax Ratio
79.18%
Dividend Payout Ratio
43.48%
Pledged Shares
0
Institutional Holding
5.54%
ROCE (avg)
3.24%
ROE (avg)
6.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
45
Industry P/E
51
Price to Book Value
3.41
EV to EBIT
36.29
EV to EBITDA
19.49
EV to Capital Employed
3.87
EV to Sales
1.27
PEG Ratio
1.57
Dividend Yield
0.95%
ROCE (Latest)
10.85%
ROE (Latest)
8.11%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CF(Y)
Highest at Rs 32.58 Cr
NET SALES(Latest six months)
At Rs 1,974.38 cr has Grown at 25.90%
ROCE(HY)
Highest at 9.88%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 563.53 cr
-13What is not working for the Company
PAT(Q)
At Rs 25.77 cr has Fallen at -11.2% (vs previous 4Q average
OPERATING PROFIT TO NET SALES (Q)
Lowest at 5.78%
PBT LESS OI(Q)
Lowest at Rs 16.11 cr.
NON-OPERATING INCOME(Q)
is 40.44 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Greaves Cotton
Operating Cash Flow - Annually
Highest at Rs 32.58 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Latest six months
At Rs 1,974.38 cr has Grown at 25.90%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 563.53 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Greaves Cotton
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 16.11 cr has Fallen at -38.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 26.07 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 25.77 cr has Fallen at -11.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 29.02 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 5.78%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 16.11 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 40.44 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
