This smallcap stock up 109% from June low; Vijay Kedia buys 1.2 mn shares

Greaves Cotton hits 35-monhts high of Rs 232.65, surging 18% in two days after Vijay Kedia-led Kedia Securities bought over 1 million shares of the company via the open market

Shares of Greaves Cotton (Greaves) hit a 35-monht high of Rs 232.65 as they rallied 10 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade amid heavy volumes. In two days, the stock price of this smallcap company has surged 18 per cent after investor Vijay Kedia-led Kedia Securities bought over 1 million shares of the company in the open market. It is trading at its highest level since January 2022.

 

On Monday, December 9, Kedia Securities purchased 1.2 million shares, representing a 0.52 per cent stake in Greaves, via open market 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, within one month, the stock price of Greaves Cotton has soared 47 per cent from the level of Rs 159.05 that it was on, on November 14. It has more than doubled or zoomed 109 per cent from its 52-week low of Rs 112.05 that it touched on June 4, 2024.  The stock had hit a record high of Rs 258.85 on January 21, 2022. The average trading volumes on the counter had jumped over two-fold with a combined 11.1 million shares changing hands on the NSE and BSE till 9:52 AM.

 

Greaves is a diversified, multi-product, multi-fuel, and multilocation engineering company. Originally renowned for its single-cylinder diesel engines, Greaves 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 electric vehicle (EV) and sustainable mobility markets.

 

The Indian diesel genset market is projected 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 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.