The engine and its accessories sector in India plays a pivotal role in driving multiple industries, from automotive to power generation, agriculture, and infrastructure. As the country continues to urbanize and industrialize, the demand for reliable engines and engine-related products, such as power gensets, pumps, and accessories, is expected to grow. This sector has seen innovation with a shift towards energy-efficient solutions, including electric vehicles and green technologies.
Ace investor Porinju Veliyath’s Equity Intelligence India has acquired a 0.5% stake in the company, purchasing shares from the open market at an average price of ₹234.63 per share. Porinju, known for his successful stock-picking strategies, has gained immense popularity due to his keen ability to identify undervalued stocks, long-term growth potential, and his insightful market approach. His investments have consistently outperformed, earning him recognition as one of India’s most trusted and influential investors.
Greaves Cotton is a leading company engaged in the manufacturing of engines, engine applications, and the trading of various related products. The company specializes in diesel, petrol, and CNG engines, as well as power gensets and power tillers.
It provides non-automotive engines ranging from 1.5 HP to 700 HP for diverse applications across industries. In FY24, the engine segment accounted for 61% of its total revenue, down slightly from 64% in FY22, indicating a diversification in its product portfolio.
Additionally, Greaves Cotton is expanding its presence in the electric vehicle (EV) and infrastructure equipment sectors, positioning itself as a key player in India’s growing EV and infrastructure landscape. The company’s diversified offerings cater to a wide range of industries, contributing to its steady growth
The shares of Greaves Cotton Limited are trading at Rs. 250.2 up by 1.65% from its previous close of Rs. 246.15 as of January 28, 2025.
Q3 Performance
Greaves Cotton Ltd. demonstrated strong financial performance in December 2024, with a notable increase in both sales and profitability. Sales grew from ₹665.38 crore in December 2023 to ₹750.60 crore in December 2024, reflecting a healthy revenue growth.
EBITDA also saw a rise, increasing from ₹35.36 crore to ₹39.67 crore, which contributed to an improved operating profit margin (OPM), rising from 4.27% in December 2023 to 5.29% in December 2024.
Net profit showed a significant dip, moving from ₹46 crore in December 2023 to ₹7 crore in December 2024. It’s important to note that the exceptionally high net profit in the previous year was partly due to the sale of exceptional items, leading to a one-time boost.
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