Greaves Cotton Limited (GREAVESCOT) AI Stock Analysis

• Market Cap: ₹33.27B
• Dividend Yield: 1.06%
• Average Volume (3M): 111.18K
• Price to Earnings (P/E): 43.8
• Beta (1Y): 2.09
• 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: ₹149.00 ▼(-20.58% 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

A strong equity base and minimal leverage provide enduring financial flexibility. Low debt limits refinancing risk and supports capital allocation for R&D, EV scaling or aftermarket network expansion, enabling the company to fund strategic investments without risking solvency over the next 2–6 months.

Revenue & Margin Improvement

Sustained revenue growth with rising gross and EBIT margins signals improving operational efficiency and pricing power. These trends underpin durable cash generation potential if maintained, supporting reinvestment into product development and aftermarket services across business cycles.

Diversified Mobility & Aftermarket

A multi-pronged business model reduces single-market dependence. Recurring aftermarket revenues stabilize cash flows, while EV and engineering capabilities position the company to capture structural electrification demand, providing a balanced growth and resilience profile over time.

Negative Factors

Weak Operating Cash Generation

Persistent negative operating cash flow constrains the firm’s ability to self-fund capex and working capital needs. Even with a strong balance sheet, ongoing cash deficits may force external financing or slower rollout of EV and aftermarket investments, pressuring execution over the medium term.

Profitability Volatility

Low and inconsistent net margins reflect sensitivity to cost swings and cyclical demand. This variability makes earnings generation less predictable, complicates long-term planning for R&D and distribution expansion, and raises the bar for proving sustainable profitability.

Demand Cyclicality Exposure

Heavy exposure to automotive, industrial and last-mile mobility markets creates structural revenue cyclicality. Demand swings can exacerbate inventory and working capital needs, making capacity planning and steady margin maintenance more difficult during downturns over the coming months.

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 makes money primarily by selling products and services across its mobility and power/engineering businesses. Key revenue streams include: (1) Sale of engines and power solutions: revenue from supplying internal-combustion engines and related power equipment used in applications such as agriculture, industrial, and other utility segments, typically earned through direct sales to OEMs and end customers. (2) Electric mobility sales: revenue generated through its EV-focused businesses (via subsidiaries) from the sale of electric two- and three-wheelers and related mobility offerings, earned through vehicle sales through distribution/dealer channels and institutional/B2B customers where applicable. (3) Aftermarket/parts and services: recurring revenue from spare parts, maintenance, service networks, and consumables supporting both legacy ICE products and mobility offerings, which tends to provide repeat sales over the product lifecycle. (4) Manufacturing/engineering and related offerings: income from engineering/manufacturing activities tied to its product portfolio (and, where applicable, components or systems supplied to other companies). Significant factors influencing earnings include demand trends in automotive and last-mile mobility, adoption of electric vehicles, government regulations affecting emissions and vehicle electrification, distribution reach and service network coverage, and the performance and scaling of its EV subsidiaries. Specific material partnerships and exact segment contribution details are null.

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 156.97, above the 50-day MA of 167.70, and below the 200-day MA of 196.21, indicating a bearish trend. The MACD of -6.00 indicates Positive momentum. The RSI at 33.63 is Neutral, neither overbought nor oversold. The STOCH value of 23.99 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
INGERRAND	66 Neutral	₹120.02B	38.39	―	2.34%	5.68%	9.74%
KIRLOSENG	66 Neutral	₹213.41B	39.78	―	0.50%	11.85%	-3.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KSB	62 Neutral	₹133.66B	48.57	―	0.51%	9.50%	14.52%
KIRLOSBROS	59 Neutral	₹126.24B	25.72	―	0.43%	4.16%	-0.73%
GREAVESCOT	58 Neutral	₹33.27B	43.76	―	1.06%	16.82%	39.89%
LLOYDSENGG	58 Neutral	₹64.74B	33.83	―	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.