Greaves Cotton Limited (GREAVESCOT) AI Stock Analysis

• Market Cap: ₹49.76B
• Dividend Yield: 0.94%
• Average Volume (3M): 312.28K
• Price to Earnings (P/E): 61.2
• Beta (1Y): 1.92
• Revenue Growth: 11.83%
• EPS Growth: N/A
• Country: IN
• Employees: 1,712
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 1.42
• Shares Outstanding: 232,844,590
• 10 Day Avg. Volume: 726,598
• 30 Day Avg. Volume: 312,284
• 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: ₹226.00
• Price Target Upside: 5.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ₹226.00 ▲(5.61% Upside)

Greaves Cotton Limited's overall stock score is driven by solid financial performance with strong revenue growth and a robust balance sheet. However, challenges in cash flow management and a high P/E ratio weigh on the score. Technical indicators show moderate bullish momentum, but long-term resistance remains a concern.

Greaves Cotton Limited Business Overview & Revenue Model

Company Description

Greaves Cotton Limited (GREAVESCOT) is a diversified engineering company in India, primarily engaged in the manufacturing and distribution of engines, engine applications, and power solutions. Established in 1859, the company operates across several sectors, including automotive, industrial, and agriculture. Its core products include diesel and petrol engines, generator sets, and pump sets, catering to a wide range of industries and consumer needs.

How the Company Makes Money

Greaves Cotton Limited generates revenue through the sale of its engines and related products to various industries, including automotive manufacturers, industrial equipment producers, and agricultural businesses. The company also earns from providing after-sales services and maintenance for its products, ensuring customer satisfaction and long-term engagement. Additionally, Greaves Cotton has strategic partnerships with OEMs (Original Equipment Manufacturers) and other industrial players, which enhance its market reach and contribute to its earnings. Its diversified product portfolio and extensive distribution network further support its revenue generation capabilities.

Greaves Cotton Limited Financial Statement Overview

Summary

Greaves Cotton Limited exhibits mixed financial performance. While revenue growth is promising and the balance sheet is strong with low leverage, the negative operational cash flow presents a challenge. Maintaining profitability and improving cash flow generation from operations are crucial for future stability.

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	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	29.18B	29.18B	25.86B	26.99B	14.93B	16.97B
Gross Profit	8.30B	9.31B	7.69B	7.29B	4.08B	4.32B
EBITDA	1.75B	1.36B	-1.79B	1.88B	535.70M	472.40M
Net Income	376.30M	584.00M	-1.35B	780.30M	-187.80M	-353.00M
Balance Sheet
Total Assets	25.52B	25.52B	24.64B	27.24B	12.90B	16.44B
Cash, Cash Equivalents and Short-Term Investments	3.22B	2.55B	4.78B	11.36B	2.81B	4.55B
Total Debt	812.40M	812.40M	807.50M	282.60M	202.50M	2.57B
Total Liabilities	9.66B	9.66B	7.90B	7.57B	5.08B	8.95B
Stockholders Equity	14.06B	14.06B	14.40B	15.87B	7.83B	7.49B
Cash Flow
Free Cash Flow	0.00	-647.70M	-3.12B	-2.14B	978.40M	-1.29B
Operating Cash Flow	0.00	-225.20M	-1.53B	-1.35B	1.47B	-627.80M
Investing Cash Flow	0.00	497.10M	2.32B	-7.58B	-1.08B	-2.32B
Financing Cash Flow	0.00	-399.80M	-256.20M	8.89B	-199.90M	2.10B

Greaves Cotton Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 214 is above the 20-day moving average (MA) of 208.21, above the 50-day MA of 204.18, and below the 200-day MA of 215.87, indicating a neutral trend. The MACD of 2.27 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 28.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	67 Neutral	₹130.08B	27.55		0.73%	8.02%	-0.95%
INGERRAND	66 Neutral	₹113.73B	42.97		2.22%	11.03%	20.30%
Sector *	66 Neutral	€10.82B	25.68	6.80%	2.53%	4.18%	-30.62%
GREAVESCOT	62 Neutral	₹49.76B	61.24		0.94%	11.83%	―
KIRLOSBROS	―	₹149.28B	35.83		0.37%	―	―
LLOYDSENGG	61 Neutral	₹100.12B	81.34		0.35%	43.43%	19.88%
KSB	59 Neutral	₹137.68B	53.61		0.50%	10.55%	17.96%

Greaves Cotton Limited Corporate Events

Greaves Cotton’s 106th AGM Sees All Resolutions Passed

Greaves Cotton Limited announced that all items of business were approved at its 106th Annual General Meeting held on July 30, 2025. The voting results, which include remote e-voting and e-voting during the AGM, were disclosed as per regulatory requirements, indicating strong shareholder support for the resolutions presented.

Greaves Cotton Limited Announces Board Restructuring and Financial Results

Greaves Cotton Limited announced significant changes in its board of directors, including the resignation of Mr. Firdose Vandrevala as a Non-Executive Independent Director, effective October 14, 2025, and the appointment of Mr. Jehangir Ardeshir as an Additional Director. These changes are part of the company’s strategic board restructuring efforts. The board also approved the standalone and consolidated unaudited financial results for the quarter ended June 30, 2025, reflecting the company’s ongoing commitment to transparency and regulatory compliance. The new appointment and resignation are expected to impact the company’s governance structure, potentially influencing its strategic direction and stakeholder relationships.

Greaves Cotton Limited Announces 106th AGM with E-Voting Facility

Greaves Cotton Limited has announced its 106th Annual General Meeting (AGM) scheduled for July 30, 2025, to be conducted via video conferencing. The company has provided digital access to its Annual Report and AGM notice to shareholders, ensuring compliance with regulatory requirements. The AGM will include provisions for e-voting, allowing shareholders to participate in decision-making processes remotely, which reflects the company’s commitment to transparency and stakeholder engagement.