Greaves Cotton - Promise Intact, Retain BUY - Emkay

- Q1FY14 results in line with estimates (a) Revenues flat yoy to Rs4.1 bn (b) EBITDA flat yoy at Rs495 mn (b) EBITDA margins at 12% (-10 bps yoy) (c) APAT -6% yoy to Rs289 mn

- 3W volumes drop 4% yoy. However 4W volume growth of 18% led by Tata Motors; auto engine volume decline to 1% yoy

- Positive on Power Tillers and Pumpsets on the back good monsoons. However concerns persist on the Infrastructure business.

- Retain Buy with target of Rs100/ share. Valuations comfortable at 7.5x FY15E earnings and RoE of over 25%

Source : Equity Bulls

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