Edelweiss Research's Amit Mahawar and Swarnim Maheshwari released a note on Greaves Cotton (GCL) today with a Buy rating and a Rs 129 price target. The analysts gave four driving reasons for the rating:

1. Greaves Cotton's Q4FY15 revenue (down 10% YoY) belied our estimate primarily due to 10% fall in agri business volumes and flat growth in 3 wheeler (3W) auto engines. However, PAT adjusted for inventory write offs of INR98mn in the DG set business was broadly in line.

2. Key highlight of the quarter was GCL's enhancement of capability to manufacture 3.5tonnage engines versus less than 1tonnage earlier. The company stated that it estimates infra business losses (legacy) to subside completely going forward.

3. We believe, GCL is in a sweet spot to benefit from recovery in the small commercial vehicle (SCV) cycle by virtue of its cost-based leadership in the low-ticket vehicle segment.

4. We remain confident of the company's potential to add new OEM in the higher tonnage category in coming quarters. 

Shares of the company gained Rs 1.05, or 0.81%, to trade at Rs 130.30. The total volume of shares traded was 2,425 at the BSE (3.17 p.m., Monday).

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.