Sharekhan has given Buy recommendation for Greaves Cotton with a target price of Rs. 194 in its research report issued on Jun 22, 2021
Sharekhan’s research report on Greaves Cotton
Greaves is set to benefit from government’s push to speed up adoption of EVs through higher incentives. We expect Greaves to clock a 24% revenue CAGR during FY2021-23E also see a sharp rise in margins, leading to a 245% earnings CAGR. The stock trades below historical averages at a P/E multiple of 20x and EV/EBITDA multiple of 12.1x its FY2023E estimates.
We maintain a Buy on the stock with a revised PT of Rs. 194, factoring better multiples, owing to positive business outlook for mobility business.