Fwd: Greaves Cotton Q2FY12 Result Update; Acceleration round the corner; Reiterate BUY; Target: Rs 103

[Deepak Vaishnav]

 

Greaves Cotton

Acceleration round the corner; Reiterate BUY

 

BUY

 

CMP: Rs89                                        Target Price: Rs103

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n     Net Profit growth at 7% yoy to Rs386 mn meets expectations but (1) Revenues up 16% yoy to Rs4.4 bn and (2) EBITDA margins down 150 bps yoy to 14.4% below expectation

n     Engines deliver despite tough business conditions – Sales up 22% yoy with EBIT margins at 16.6%. Infrastructure revenues fall 21% yoy with EBIT loss of Rs12 mn

n     Commences sales to Tata Motors – supplied 6,000 units in Q2FY12. Expects to supply 30,000 to 35,000 units in H2FY12E

n     Revise earnings down by 2% for FY12E to Rs6.9 and by 4% for FY13E to Rs7.9 per share. Retain BUY raring with price target of Rs103 per share – Reiterate top mid-cap pick

 

Regards,

Pritesh Chheda

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com

Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241

 

 

Prerna Jhavar
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : prerna...@emkayglobal.com
Board No. : +91-22-6612 1212 | Extn. : 337 | DID : 6612 1337 | Mob : +91981935 0593 |