Greaves Cotton Share Price Hits Lifetime High, Outperforms Sector By 14%

Greaves Cotton, a prominent player in the diesel engine sector, reached a lifetime high of Rs 269 on Dec. 27, 2024. The stock surged by 14.40%, significantly outperforming its sector by 14%, and has posted an impressive 80.47% gain over the past year. The stock has risen over 10% in last five days alone and over 44% in past one month.

This uptick in Greaves Cotton's stock comes on the back of positive market sentiment surrounding its electric vehicle subsidiary, Greaves Electric Mobility. Last week, the EV arm filed a draft prospectus for an initial public offering (IPO), aiming to raise Rs 1,000 crore through a fresh issue of shares. Additionally, an offer for sale of up to 18.9 crore shares is set to be conducted by Greaves Cotton and Abdul Latif Jameel Green Mobility Solutions DMCC.

A pre-IPO placement of Rs 200 crore is also being planned, which may reduce the amount raised through the fresh issue, depending on its success. The move to go public underscores Greaves Electric Mobility's growing presence in the EV market, with a portfolio that includes brands like Ampere, Eltra, and Ele. The company operates in both the B2C and B2B segments of the electric two-wheeler and three-wheeler markets.

Greaves Electric Mobility, founded in 2008, is poised to benefit from the increasing demand for electric vehicles in India, aligning itself with the government's push for sustainable transportation. This strategic move towards clean energy, coupled with strong financial performance, has clearly bolstered investor confidence in Greaves Cotton, as reflected in its soaring stock price.

The scrip rose as much as 14.40% to Rs 269 apiece. It pared gains to trade 14.40% higher at Rs 268.90 apiece as of 12:42 p.m. This compares to a 0.38% advance in the NSE Nifty 50 Index.

It has risen 80.47% in the last 12 months. Total traded volume so far in the day stood at 3.6 times its 30-day average. The relative strength index was at 70.06.

Out of three analysts tracking the company, two maintain a 'buy' rating, one recommend a 'hold,' and zero suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside 33%.