Sharekhan has given Buy recommendation for Greaves Cotton with a target price of Rs. 110 in its research report issued on Feb 11, 2021
Sharekhan’s research report on Greaves Cotton
Greaves reported strong set of numbers in Q3FY21, ahead of our expectations at both revenue and operational level. We expect Greaves’ earnings to grow robust 92.4% in FY2022E and 35.4% in FY2023E, driven by 19.9% CAGR during FY2021E-FY2023E and 450 bps improvement in EBITDA margin. The stock is trading below its average historical multiple at P/E multiple of 13.6x and EV/EBITDA multiple of 7.5x its FY2023E estimates. We upgrade our rating to Buy call.
We upgrade Greaves Cotton Limited (Greaves) to Buy with a revised PT of Rs. 110, factoring in faster than expected recovery in its business outlook and improved operational performance.