Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Greaves Cotton- RECO : BUY TP : Rs111
Investment Rationale
§ Growth drivers of Engines segment remain strong – Auto to maintain momentum, Industrial to pick-up and
Agriculture to nudge along
§ In Autos à Break-through with Tata Motors; Increasing penetration with M&M
§ Tata Motors à secured long-term supply contracts for Ace Zip and Ace Magic
§ M&M – single source supplier of single cylinder 3-Wheel vehicle engines
§ Infrastructure segment broke-even in Q2FY11 at EBIT level – after 8 quarters of posting loss
§ Expanding capacity by 160,000 units over next 2 years à To add 80,000 Units under Phase 1 by April 2011
§ Strong cash generation and return rations – ROCE and ROE at +35%
Valuations
§ At CMP, the stock is trading at 13.1X FY11E and 10.7X FY12E consolidated earnings of Rs6.4 per share and
Rs7.9 per share respectively
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Greaves Cotton- RECO : BUY TP : Rs111
Investment Rationale
§ Growth drivers of Engines segment remain strong – Auto to maintain momentum, Industrial to pick-up and
Agriculture to nudge along
§ In Autos à Break-through with Tata Motors; Increasing penetration with M&M
§ Tata Motors à secured long-term supply contracts for Ace Zip and Ace Magic
§ M&M – single source supplier of single cylinder 3-Wheel vehicle engines
§ Infrastructure segment broke-even in Q2FY11 at EBIT level – after 8 quarters of posting loss
§ Expanding capacity by 160,000 units over next 2 years à To add 80,000 Units under Phase 1 by April 2011
§ Strong cash generation and return rations – ROCE and ROE at +35%
Valuations
§ At CMP, the stock is trading at 13.1X FY11E and 10.7X FY12E consolidated earnings of Rs6.4 per share and
Rs7.9 per share respectively
No comments:
Post a Comment