Greaves Cotton Limited (GREAVESCOT) AI Stock Analysis

• Market Cap: ₹35.13B
• Dividend Yield: 1.06%
• Average Volume (3M): 111.18K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 2.13
• Revenue Growth: 16.82%
• EPS Growth: 39.89%
• Country: IN
• Employees: 1,712
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.96
• Shares Outstanding: 232,896,260
• 10 Day Avg. Volume: 69,488
• 30 Day Avg. Volume: 111,177
• PEG Ratio: -0.60
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 1.71
• P/FCF Ratio: -76.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.9
• Revenue Forecast (FY): ₹32.77B

• Rating: 58 Neutral
• Price Target: ₹157.00 ▼(-16.31% Downside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

Greaves Cotton Limited's stock score is primarily influenced by its mixed financial performance, with strong revenue growth and balance sheet health offset by cash flow challenges. Technical indicators suggest bearish momentum, and the stock's high valuation limits its attractiveness. The absence of earnings call data and corporate events further limits the score.

Positive Factors

Balance-sheet strength

Greaves' capital structure is conservatively positioned with very low leverage and a >55% equity ratio, providing long-term financial flexibility to fund operations, capex or EV investments and to withstand cyclical downturns without forced deleveraging.

Revenue growth and gross margin expansion

Sustained revenue growth coupled with a rising gross margin indicates durable improvement in pricing, product mix or cost control. That combination supports mid‑term earnings resilience and creates capacity to invest in aftermarket and EV businesses.

Diversified business model including EV exposure

A multi-pronged revenue base—legacy ICE engines, aftermarket parts and nascent EV vehicle businesses—reduces single-market dependence. Aftermarket and services provide recurring revenue while EVs offer structural growth optionality as adoption expands.

Negative Factors

Weak operating cash generation

Persistent negative operating cash flow undermines the company’s ability to self‑fund growth and capex. Even with margin gains, weak cash conversion raises reliance on reserves or external financing, constraining long‑term reinvestment and shareholder returns.

Volatile net profitability

Swinging from loss to modest profit signals volatility in end‑market demand or cost structure. Low and unstable net margins limit earnings predictability, making it harder to plan sustained investments in EV scaling or distribution expansion.

Exposure to cyclical end markets and transition risk

Revenue depends on cyclical industrial and mobility markets and on the pace of electrification. Slow EV adoption or adverse regulatory shifts could depress legacy ICE volumes before EV revenues scale, creating mid‑term demand and mix headwinds.

Greaves Cotton Limited Business Overview & Revenue Model

Company Description

Greaves Cotton Limited manufactures and sells engines and engine application products in India. The company offers lightweight diesel/gasoline engines for automotive engine applications, such as 3-wheelers and small 4-wheeled commercial vehicles; non-automotive small engines for agriculture, construction, marine, genset, and other industries; and industrial and firefighting engines. It also provides generator sets; petrol kerosene, diesel, electric, OHV pumpsets; light agri equipment; reaper and rotavator; and drip and sprinklers irrigation systems. In addition, the company manufactures spares, such as engine and electrical parts, lubricants, amsoil, batteries, construction products, tires, and 2 wheeler spares; provides vehicle finance services; and trades in power tillers, spares related to engines, electric vehicles and infrastructure equipment, etc. It also exports its products to the Middle East, Africa, and the South East Asia region. The company operates a network of approximately 400 retail centres and 6300 smaller spare parts retail outlets. Greaves Cotton Limited was founded in 1859 and is based in Mumbai, India.

How the Company Makes Money

Greaves Cotton generates revenue through multiple key streams, primarily from the sale of engines, automotive components, and electric vehicles. The company's revenue model is largely based on manufacturing and distribution, where it sells its products to both original equipment manufacturers (OEMs) and end-users. Additionally, Greaves Cotton has established strategic partnerships with various automotive and industrial companies, enhancing its reach and capabilities. The company also benefits from after-sales services and maintenance contracts, which contribute to a recurring revenue stream. Furthermore, Greaves Cotton's investments in research and development allow it to innovate and introduce new products, tapping into emerging markets and trends, thereby diversifying its income sources.

Greaves Cotton Limited Financial Statement Overview

Summary

Greaves Cotton Limited shows promising revenue growth and improving profitability with a strong balance sheet. However, cash flow challenges persist, indicating a need for better operational cash management.

Income Statement

Greaves Cotton Limited has shown solid revenue growth over the years, with a significant increase in total revenue from 2024 to 2025. The gross profit margin improved to 31.90% in 2025 from 29.73% in 2024, indicating better cost management. However, the company has had fluctuating net income, with a positive net profit margin of 2.00% in 2025 following a negative performance in 2024. The EBIT and EBITDA margins have also shown improvement, with EBIT margin increasing to 20.75% in 2025. The company needs to focus on maintaining profitability to stabilize its income statement performance further.

Balance Sheet

The balance sheet of Greaves Cotton Limited remains strong with a high equity ratio of 55.06% in 2025, indicating a robust equity base relative to its total assets. The debt-to-equity ratio is low at 0.06, showing conservative leverage usage. Return on equity (ROE) has improved to 4.15% in 2025, demonstrating better utilization of shareholder funds compared to previous years. The company has maintained healthy cash reserves, which provides financial flexibility. Overall, the company has a stable capital structure with minimal financial risk.

Cash Flow

Greaves Cotton Limited's cash flow statements indicate some challenges, with negative operating cash flow in recent years. The free cash flow improved but remained negative in 2025. The operating cash flow to net income ratio and free cash flow to net income ratio suggest that cash generation from operations is still an area of concern. Despite this, the company has managed to maintain a reasonable investing and financing strategy. Improving operational cash flow efficiency remains a key focus area.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.24B	29.18B	26.33B	26.99B	17.10B	14.93B
Gross Profit	9.84B	9.31B	8.16B	7.29B	1.61B	4.08B
EBITDA	2.22B	1.36B	-1.79B	1.88B	472.40M	535.70M
Net Income	811.70M	584.00M	-1.35B	780.30M	-353.00M	-187.80M
Balance Sheet
Total Assets	0.00	25.52B	24.64B	27.24B	16.44B	12.90B
Cash, Cash Equivalents and Short-Term Investments	5.46B	2.55B	4.78B	11.36B	4.55B	2.81B
Total Debt	0.00	812.40M	807.50M	282.60M	2.57B	202.50M
Total Liabilities	-15.85B	9.66B	7.90B	7.57B	8.95B	5.08B
Stockholders Equity	15.85B	14.06B	14.40B	15.87B	7.49B	7.83B
Cash Flow
Free Cash Flow	0.00	-647.70M	-3.12B	-2.14B	-1.29B	978.40M
Operating Cash Flow	0.00	-225.20M	-1.53B	-1.35B	-627.80M	1.47B
Investing Cash Flow	0.00	497.10M	2.32B	-7.58B	-2.32B	-1.08B
Financing Cash Flow	0.00	-399.80M	-320.10M	8.89B	2.10B	-199.90M

Greaves Cotton Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GREAVESCOT, the sentiment is Negative. The current price of 187.6 is above the 20-day moving average (MA) of 163.65, above the 50-day MA of 172.14, and below the 200-day MA of 198.06, indicating a bearish trend. The MACD of -5.20 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GREAVESCOT.

Greaves Cotton Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KIRLOSENG	68 Neutral	₹204.92B	37.07	―	0.50%	11.85%	-3.66%
INGERRAND	66 Neutral	₹123.77B	48.74	―	2.34%	5.68%	9.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KSB	62 Neutral	₹129.02B	49.62	―	0.51%	9.50%	14.52%
KIRLOSBROS	59 Neutral	₹121.80B	31.42	―	0.43%	4.16%	-0.73%
GREAVESCOT	58 Neutral	₹35.13B	32.79	―	1.06%	16.82%	39.89%
LLOYDSENGG	58 Neutral	₹67.61B	43.16	―	0.43%	40.02%	26.77%

Greaves Cotton Limited Corporate Events

Greaves Electric Mobility Enters Nepal With Launch of Ampere Nexus Scooter

Greaves Electric Mobility, the EV arm of Greaves Cotton, has entered the Nepal market by launching its flagship Ampere Nexus electric scooter in partnership with STC Auto Solution. Positioned as a terrain-ready premium scooter, the Nexus targets Nepal’s steep, rugged landscapes and intensive daily use, leveraging its performance credentials from challenging Indian routes such as Kolli Hills and Shipki La Pass.

The Ampere Nexus features an LFP battery, strong torque delivery, and a 7-inch TFT touchscreen with Nex.io for full-screen navigation, connectivity, and real-time vehicle monitoring, supported by the Ampere Connect app. This move marks a strategic step in Greaves Electric Mobility’s international expansion and underlines its intent to support Nepal’s transition to clean mobility while building a foothold in other markets within the country over time.

Greaves Cotton Appoints New Chief Strategy & AI Officer

Greaves Cotton Limited has announced the appointment of Mr. Santosh Singh as the Chief Strategy & AI Officer, effective December 15, 2025. This strategic move aims to enhance the company’s execution across emerging business vectors. Mr. Singh, with his extensive experience in strategy, business excellence, and AI-led enterprise transformation, will lead initiatives in strategy, transformation, AI-led enterprise capability building, and business excellence at Greaves Cotton.