Greaves Cotton down 52% from January 2022 highs but Sharekhan remains positive; here's why

Greaves Cotton down 52% from January 2022 highs Is it a good time to buy? {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Shares of Greaves Cotton witnessed an unprecedented rally between April 2020 and January 2022, soaring from rupees 79.40 apiece to an all-time high of rupees 258.90. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

However, the stock has since gone through a complete turnaround, falling by approximately 52.44% to rupees 122.70. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Despite the stock being an underperformer, domestic brokerage firm Sharekhan has remained optimistic about the company's long-term prospects. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

The brokerage believes that the company is strategically building up a new business (EVs & retail) for growth and continuing to strengthen its legacy business via the organic route. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

During their visit to the electric two-wheeler manufacturing plant at Ranipet (Chennai), the brokerage noted some positive developments. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

The brokerage stated that the plant has achieved a manufacturing capacity of five lakh units in two shifts {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Currently, EV penetration in India is around 5% and has large room to expand due to cost-effective last-mile transport solution offerings, said the brokerage. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

In light of all growth factors, Sharekhan has retained its "buy" call on the stock with an unchanged target price of rupees 183 apiece {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Click here to know more about Greaves Cotton Check here for more market related stories. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}