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Shares of Greaves Cotton surged as much as 8% in Monday’s trade to hit their 52-week high of ₹215 on the NSE. Further, the block deal also pushed the volumes at the counters to over one crore. That compares with an average volume of 36 lakh shares over the last six months. The stock of Greaves Cotton has rallied more than 40% so far in 2024, against 13% gains clocked by the benchmark Nifty50 during the same period.
Additionally, fund houses like Dimensional Fund Advisors, Sundaram Asset Management Company and Motilal Oswal Asset Management also picked up shares in the company during the December quarter, according to Bloomberg data.
Interestingly, the acquisition in Greaves Cotton by Kedia is happening ahead of the proposed listing of its electric vehicle unit. In the first week of December, the board of Greaves Cotton approved the Initial Public Offering (IPO) of its material subsidiary, Greaves Electric Mobility Ltd (GEML). The IPO comprises both a fresh issue of equity shares and an offer for sale by existing shareholders.
GEML, which has been facing stiff competition from the other established players, is expected to achieve revenue growth of 7% and 14%, respectively in FY25 and FY26.
Greaves Cotton reported a net loss of ₹135.3 crore in FY24 against a profit of ₹78 crore in FY23. The net revenue of the company declined by 2.5% to ₹2,633 crore during the year. However, for the first half of FY25, it has managed to report a net profit of ₹13.5 crore. As of Monday’s close, the company commands a market capitalisation of ₹4,957 crore.
Greaves Cotton manufactures internal combustion engines, power generation equipment and power transmission systems. The company also manufactures mining, oilfield, construction and materials handling equipment, integrated systems and electronics. Other products of Greaves Cotton include three-wheeler autorickshaws, polymers and resins.
(Edited by : Ajay Vaishnav)
