NSEI:GREAVESCOT

Stock Analysis Report

Executive Summary

Greaves Cotton Limited manufactures and sells engines and engine application products in India.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.

Risks

  • Greaves Cotton has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Greaves Cotton's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

NSEI:GREAVESCOT

-2.3%

IN Machinery

-2.3%

IN Market


1 Year Return

-17.1%

NSEI:GREAVESCOT

-28.8%

IN Machinery

-14.6%

IN Market

GREAVESCOT outperformed the Machinery industry which returned -28.8% over the past year.

GREAVESCOT underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

GREAVESCOTIndustryMarket
7 Day2.5%-2.3%-2.3%
30 Day-13.8%-9.6%-4.0%
90 Day-16.5%-20.1%-10.1%
1 Year-14.3%-17.1%-27.6%-28.8%-12.9%-14.6%
3 Year-2.1%-12.8%-5.7%-9.2%17.9%11.8%
5 Year9.9%-7.3%33.0%25.6%35.9%23.2%

Price Volatility Vs. Market

How volatile is Greaves Cotton's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greaves Cotton undervalued based on future cash flows and its price relative to the stock market?

18.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Greaves Cotton's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Greaves Cotton's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Greaves Cotton is overvalued based on earnings compared to the IN Machinery industry average.

Greaves Cotton is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Greaves Cotton is poor value based on expected growth next year.


Price Based on Value of Assets

Greaves Cotton is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is Greaves Cotton expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Greaves Cotton's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Greaves Cotton's earnings are expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).

Greaves Cotton's revenue growth is positive but not above the India market average.

Greaves Cotton's earnings growth is positive but not above the India market average.

Greaves Cotton's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Greaves Cotton will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Greaves Cotton performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Greaves Cotton's year on year earnings growth rate has been positive over the past 5 years.

Greaves Cotton's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Greaves Cotton's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.


Return on Equity

Greaves Cotton has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Greaves Cotton used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Greaves Cotton's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Greaves Cotton's financial position?


Financial Position Analysis

Greaves Cotton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Greaves Cotton's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Greaves Cotton's level of debt (1.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 1.1% today).

Debt is well covered by operating cash flow (1305.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 161.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 67.9x debt.


Next Steps

Dividend

What is Greaves Cotton's current dividend yield, its reliability and sustainability?

4.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Greaves Cotton's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Greaves Cotton's dividend is above the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Greaves Cotton's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average board tenure


CEO

Nagesh Basavanhalli 0

2.9yrs

Tenure

₹50,873,000

Compensation

Mr. Nagesh A. Basavanhalli has been Chief Executive Officer and Managing Director of Greaves Cotton Limited since September 27, 2016. Mr. Basavanhalli is a Global Automotive Executive with more than 20 yea ...


CEO Compensation Analysis

Nagesh's remuneration is higher than average for companies of similar size in India.

Nagesh's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Board Age and Tenure

4.2yrs

Average Tenure

65yo

Average Age

The tenure for the Greaves Cotton board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Sanjiv Kumar

    Member of Executive Board & CEO of Automotive Engines Business

    • Tenure: 0.0yrs
  • Neetu Kashiramka (45yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: ₹15.24m
  • T. Furtado

    Group General Manager of Marketing Services

    • Tenure: 0.0yrs
  • Ramachandran Nandagopal

    Member of Executive Board and Chief Executive Officer of Construction Equipment Business

    • Tenure: 0.0yrs
  • Vinay Khanolkar

    Member of Executive Board & CEO of Aftermarket Business

    • Tenure: 0.0yrs
  • Prakash Bhalekar

    Member of Executive Board

    • Tenure: 0.0yrs
  • Nagesh Basavanhalli

    MD, CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: ₹50.87m
  • Gagan Mathur

    Chief Operating Officer of International Business

    • Tenure: 0.0yrs
  • M. Mohanan

    President of Farm Equipment Business

    • Tenure: 0.0yrs
  • Atindra Basu

    Head of Legal & Internal Audit

    • Tenure: 0.0yrs
    • Compensation: ₹10.46m

Board Members

  • Karan Thapar (60yo)

    Non-Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: ₹14.15m
  • Vijay Rai (73yo)

    Non-Executive & Non-Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹1.50m
  • Vikram Tandon (70yo)

    Independent Director

    • Tenure: 12.0yrs
    • Compensation: ₹1.74m
  • Nagesh Basavanhalli

    MD, CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: ₹50.87m
  • Navneet Singh

    Independent Director

    • Tenure: 6.0yrs
    • Compensation: ₹1.64m
  • Vinay Sanghi (50yo)

    Independent Director

    • Tenure: 2.0yrs
    • Compensation: ₹1.50m
  • Arvind Singhal

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: ₹1.69m
  • Kewal Handa

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.90m
  • Sree Patel

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: ₹1.59m

Company Information

Greaves Cotton Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greaves Cotton Limited
  • Ticker: GREAVESCOT
  • Exchange: NSEI
  • Founded: 1859
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹29.366b
  • Shares outstanding: 244.21m
  • Website: https://www.greavescotton.com

Number of Employees


Location

  • Greaves Cotton Limited
  • Unit No. 701, Tower 3
  • 7th Floor
  • Mumbai
  • Maharashtra
  • 400070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
501455BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1999
GREAVESCOTNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1999

Biography

Greaves Cotton Limited manufactures and sells engines and engine application products in India. It offers lightweight diesel/gasoline engines for automotive engine applications, such as 3-wheelers and smal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:48
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.