Emkay retains Buy rating on Greaves Cotton

Emkay retains BUY rating on Greaves Cotton Limited with revised price target of Rs90/Share.

3-W Here To Stay, BUY Greaves Cotton

- 3-W Goods Carrier has better economics then 4-W Goods Carrier, both on ownership costs and operating costs.

- Only Tata Ace Zip is comparable to 3-W; Case exists for 3-WGoods carrier cannibalization by Tata Ace Zip, both fitted with Greaves engine.

- Greaves Cotton to regain volume growth momentum in near term, led by (1) favorable base in 3-W and (2) ramp-up in supply to Tata Motors.

- Our earnings estimates of Rs6.0/Share and Rs7.0/Share forFY13E and FY14E have upside bias. Retain BUY rating with revised price target of Rs90/Share.

Source : Equity Bulls

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