Greaves Cotton - The new 'Ustad', Retain Buy - Emkay

- Greaves Cotton launches 'Ustad' mini –tractor fitted with a single cylinder 11-12 HP Greaves engine. Priced at Rs0.20-0.24 mn per unit

- Greaves likely to leverage existing tiller distribution network. Risk reward favourable given low capital intensity and an early entrant in the emerging segment

- Lends 2-3% upside to our earnings estimates assuming a 10% market share for Greaves and upsides from use of inhouse engine - though yet not factored

- Recent price correction factors all concerns. Attractive return ratios at +30% levels, FCF yield of 8%. Reiterate Greaves as top pick; Recommend Buy with Rs100 target

Source : Equity Bulls

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