Greaves Cotton Ltd (Engines) — fundamental analysis, earnings data, and key metrics. PE: 27.2. ROE: 4.1%. This stock is not currently in the Nifty 500 momentum outperformers list.
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
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's latest quarterly results (Dec 2025) show
Greaves Cotton Ltd's current PE ratio is 27.2x.
Greaves Cotton Ltd's price-to-book ratio is 2.1x.
Greaves Cotton Ltd's fundamental strength based on key financial ratios
Greaves Cotton Ltd has a debt-to-equity ratio of N/A.
Greaves Cotton Ltd's return ratios over recent years
Greaves Cotton Ltd's operating cash flow is negative (FY2025).
Greaves Cotton Ltd's current dividend yield is 1.57%.
Greaves Cotton Ltd's shareholding pattern (Dec 2025)
Greaves Cotton Ltd's promoter holding has remained stable recently.
Greaves Cotton Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Greaves Cotton Ltd has 3 key growth catalysts identified from recent earnings analysis
Greaves Cotton Ltd has 2 key risks worth monitoring
Greaves Cotton Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Greaves Cotton Ltd may be worth studying
Greaves Cotton Ltd investment thesis summary:
Greaves Cotton Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
