Vijay Kedia, a prominent investor, has made a strategic move in the industrial manufacturing sector, acquiring a stake in a well-established engineering company. This investment signals confidence in the organisation’s potential and market positioning.
Share Price Movement
The share price of Greaves Cotton Limited went up by 15.25 percent to Rs. 245.77 per share on Tuesday, an increase from its previous close of Rs. 213.24 per share. The market capitalisation now stands at approximately Rs. 5,672.55 crore as of December 10, 2024.
What happened
Renowned investor Vijay Kedia, through a block deal on Monday, purchased 12 lakh shares of Greaves Cotton, gaining a 0.52% stake in the company. Acquired via his firm, Kedia Securities, the shares were bought for Rs. 25 crore at an average price of Rs. 208.87 each, marking what appears to be his first investment in the company.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Greaves Cotton’s consolidated revenue from operations has decreased by 3.2 percent YOY from Rs. 727 crore in Q2 FY24 to Rs. 705 crore in Q2 FY25 and increased by 10 percent QoQ from Rs. 640 crore in Q4 FY24.
The company’s consolidated net loss has reduced from a loss of Rs. 375 crore in Q2 FY24 to a loss of Rs. 14 crore in Q2 FY25.
Market Outlook
The electric three-wheelers (L5-3W) industry grew strongly in FY 2023-24, thanks to new BS6 emission rules and better rural infrastructure. Demand for affordable transportation led to a 41% rise in three-wheeler sales, reaching record-high numbers. CNG is the most popular fuel, used in 63% of vehicles, followed by diesel and electric options. E-commerce also increased demand for cargo vehicles. In the future, costs and government policies will play a key role in shaping the market for these vehicles.
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Shareholding Pattern
As of September 2024 shareholding pattern, Greaves Cotton Limited is primarily held by the promoters at 55.88 percent, foreign institutional investors hold 1.04 percent, and the public with 39.23 percent.
About Company
Greaves Cotton Limited, a leading engineering company in India, has been driving innovation since its inception on March 29, 1922. Headquartered in Mumbai, the company rebranded from Greaves Limited in 2003, reflecting its expanded focus. With a diverse product portfolio, including engines, gensets, electric vehicles, and farm equipment, it has established a strong presence across Southeast Asia, Africa, the Middle East, and Europe.
The company operates through key business segments, including fuel-agnostic powertrain solutions, e-mobility, aftermarket services, and auxiliary power. Strategic initiatives like acquiring a majority stake in Ampere Vehicles and launching Greaves Care outlets have strengthened its market position.
Greaves Cotton remains committed to sustainability and innovation, aiming to redefine green mobility and touch a billion lives by 2030. Its enduring legacy and forward-looking strategies ensure it remains a leader in engineering excellence.
Written By Fazal Ul Vahab C H
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