As of Mar 28, 2026, Greaves Cotton Ltd (Engines) has a deep value score of 38/100 (rated Weak). 1Y return vs Nifty 500: -41%.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
Multi-business turnaround with margin recovery (OPM +180 bps YoY) and debt reduction driven by cost optimization and EV financing growth (AUM ₹445 crore) positions for re-rating.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
First full-year profit after 3 years of losses expected in March results, with 9M PBT already +33% YoY
Impact: +₹2436 Cr revenue
“9M FY26 PBT at ₹111 crore vs ₹83 crore in 9M FY25”
GFL business reaching critical mass with AUM crossing ₹500 crore by June 2026, improving ROE from 8.5% to 12%+
Impact: +₹150 Cr revenue
“Current AUM at ₹445 crore with ₹640 crore cumulative disbursements”
Deleveraging through asset monetization expected to reduce D/E from 0.35x to below 0.3x by Q1 FY27
“Net debt reduced from ₹210 crore to ₹120 crore in last 2 quarters”
Risks that could prevent re-rating or deepen the value trap
Further regulatory changes in Q4
Impact: -100 bps margin impact
Management view: Recognized in Q3 but potential for additional impact in Q4 per management commentary
Monitor: Q4 labor cost as % of revenue
Steel price volatility
Impact: -150 bps margin impact
Management view: Hedging strategies in place but limited protection against sharp moves
Monitor: Steel prices and order book cancellation rates
Forward-looking targets from management for FY27
Revenue Growth Target
15%
Implied PAT Growth
25%
OPM Guidance
7.5%
Capex Plan
₹600 Cr
Credit Growth Target
20%
NIM Guidance
4.5%
Key Milestones
• EV AUM > ₹500 crore by June 2026
• D/E < 0.3x by Sept 2026
• New product launches in Q2 FY27
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +17% | +20% | Stable |
| PAT (Net Profit) | -11% | +80% | Inflection Down |
| OPM | 7.1% | +181 bps | Volatile |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Greaves Cotton Ltd has a deep value score of 38/100 (rated Weak). This score is calculated from three components
Greaves Cotton Ltd's quarterly profit (PAT) growth trajectory
Greaves Cotton Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Greaves Cotton Ltd's earnings momentum is Decelerating — growth rate is slowing.
Greaves Cotton Ltd's valuation metrics
Greaves Cotton Ltd's revenue and margin trends
Greaves Cotton Ltd's trailing twelve month (TTM) performance
Greaves Cotton Ltd key facts
Greaves Cotton Ltd shows limited deep value signals currently — score is 38/100 (Weak). Monitor for improvement.
Engines deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Greaves Cotton Ltd has 3 key growth catalysts identified from recent earnings analysis
Greaves Cotton Ltd has 2 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
