Multibagger stock fell 11% in 5 sessions. ICICI Securities sees gains after Q3

Domestic brokerage and research firm ICICI Securities has said in a note that e-mobility and new initiatives can drive growth in the long run amid sluggish business engine. It has retained its ‘hold’ rating multibagger stockWhich has increased by more than 124% in one year, with the target price 220 per share. However, the stock has lost nearly 11% in the last five trading sessions.

The brokerage note said the transformation strategy to help increase the share of the business of e-mobility and new initiatives to fuel long-term growth and help protect its businesses from risk and exposure. Further, according to ICICI Securities, consolidation of manufacturing operations across megasites may act as a key trigger for future price performance to bring higher operational efficiencies and reduce fixed costs in the long run.

Greaves Cotton’s standalone revenue for the third quarter came in at 300.5 crore, down 31.2% on a year-on-year (YoY) basis, while EBITDA declined 68% from the year-ago quarter, impacted by restructuring, pandemic, higher commodity prices. As a result, standalone adjusted net profit came in at 9.3 crore, a decline of 70.7% annually.

However, from FY 2017 to FY 2011 the new business share increased to around 30%, while auto engines declined to around 37%. Overall, the share of B2C increased to around 60% in FY2011. The brokerage believes that e-mobility is expected to drive future growth.

Separately, ICICI Securities said it also prefers Timken India in its coverage as Timken has a strong balance sheet coupled with good growth prospects. The brokerage’s buy rating on Timken India shares comes with a target price of 2,405 per share.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.