Greaves Cotton stock hits record high, zooms 31% in 3 days; here's why

The average trading volumes at the counter jumped over two-fold with a combined 30.9 million shares representing 13.3% equity of the company changing hands on the NSE and BSE till 02:57 pm.

Shares of Greaves Cotton hit a new high after a gap of nearly three years after the stock gained 3 per cent at Rs 259.50 on the BSE in Wednesday’s intra-day trade amid heavy volumes. The stock has bounced back 8 per cent from its intra-day low of Rs 239.85. It surpassed its previous high of Rs 258.85 registered on January 21, 2022.

 

At 02:57 pm; Greaves Cotton was trading 1.5 per cent higher at Rs 255.50, as compared to 0.02 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over two-fold. A combined 30.9 million shares representing 13.3 per cent equity of the company changed hands on the NSE and BSE.

 

In the past three days, the stock price of Greaves Cotton has zoomed 31 per cent after investor Vijay Kedia-led Kedia Securities bought over 1 million shares of the company in the open market. 

 

On Monday, December 9, Kedia Securities purchased 1.2 million shares, representing a 0.52 per cent stake in Greaves Cotton, via open market deals on the NSE, the exchange bulk deal data showed. Kedia Securities acquired shares at a price of Rs 208.87 per share. The names of the sellers could not be ascertained immediately.

 

Meanwhile, Greaves Retail, a division of Greaves Cotton, today announced the launch of its new range of high-performance electrified light construction equipment at bauma CONEXPO India 2024. This strategic move into the Construction Equipment Sector underscores the company's commitment to delivering innovative, reliable solutions that prioritise environmental responsibility and sustainability, the company said in a press release.

 

In the mobility ecosystem, Greaves Retail and Distribution provides clean mobility and energy solutions in the e3W, ICE 3W, and SCV segments. Greaves Retail comprises ventures such as Greaves Care, Greaves Spares, and AutoEVmart. 

 

Greaves Care offers a comprehensive range of maintenance services and spares for small commercial vehicles (SCVs) and 3-wheelers (diesel, petrol and electric) across multiple brands. Greaves Spares, through its network of 250+ distributors, 10,000+ retailers and 25,000+ mechanics, offers various 3W, e3W and SCV multi-brand vehicle parts to end customers (mechanics, garages, fleet operators etc.). AutoEVmart is a one of its kind electric vehicle (EV) megamart for electric 2-wheelers and 3-wheelers.

 

Greaves Cotton is a diversified, multi-product, multi-fuel, and multilocation engineering company. Originally renowned for its single-cylinder diesel engines, Greaves Cotton has transformed into a fuel-agnostic, end-to-end mobility solutions provider, driven by the purpose of touching a billion lives by 2030 and enabling a sustainable transition to green mobility.

 

Through its five separate business units—Greaves Engineering, Greaves Electric Mobility, Greaves Retail, Greaves Finance, and Greaves Technologies—the company has combined agility with strategic focus to deliver innovation and enhance accessibility for consumers. With significant investments in technology and human capital, the company is positioned to lead in India's EV and sustainable mobility markets.

 

The Indian diesel genset market is projected to grow at a compound annual growth rate (CAGR) of 6.9 - 8.6 per cent from 2023 to 2030. The market de-grew in Q2FY25 on account of the emission regime transition to CPCB 4+ norms; it is indicated to have impacted growth to flat in FY25 on an annual basis due to multiple factors.

 

The driving factors for the growth of the power-genset sector include increasing electricity demand, urbanisation, and industrialisation. The infrastructure, reality, retail and commercial sector holds the major share and is projected to maintain its position in coming years, Greaves said in an investor presentation.

 

Greaves Electric Mobility (GEM) is a key player in the electric 2-wheeler (2W) and 3-wheeler (3W) segments, focusing on affordable mobility solutions to promote "Har Gully Electric."

 

In Q2FY25, GEM’s retail sales surged by 30 per cent in 3W and 20 per cent in e2W quarter-on-quarter, driven by a remarkable festive season with 30X website traffic growth and doubled customer visits, resulting in a 30 per cent month-on-month increase in retail sales.