Greaves Cotton - Change in Core Strategy, Retain Buy - Emkay

- Weak performance in Q4FY12; Revenue growth of 5.4% yoy to Rs4.4 bn and APAT decline of 26% yoy to Rs344 mn;

- Engines report lowest revenue growth (5.4% yoy) in last 9 quarters and Infrastructure reports highest loss (Rs41 mn) in last 11 quarters.

- Deviation in engine strategy, looking beyond the last mile transport connectivity market for growth in engines segment.

- Near term earnings risk offset by FCF yield of 8% in FY14, Retain Buy rating with price target of Rs90/Share.

Source : Equity Bulls

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