Greaves Cotton up 10% on strong volume, and the stock approaching a record high

Greaves Cotton shares rose 10% to Rs 166.90 on the BSE in intraday trade on Thursday, owing to large volumes in an otherwise range-bound market and expectations of a solid business outlook.

The stock was trading at its highest level since July of last year. On May 4, 2017, it reached a record high of Rs 178. Trading volumes on the counter nearly doubled, with a total of 9.9 million shares changing hands on the NSE and BSE as of 11:22 a.m. The S&P BSE Sensex, on the other hand, was down 0.20 percent at 52,400 points.

Greaves Cotton’s market price has risen 23% in the last week as the government boosted the subsidy on electric two-wheelers by 50% under the second phase of the FAME India initiative, making them more affordable.

Greaves Cotton is a multi-faceted engineering firm that specialises in cleantech powertrain solutions (CNG, Petrol, and Diesel Engines), generator sets, agricultural equipment, e-mobility, aftermarket supplies, and services. Greaves Cotton added Ampere Vehicles to its clean technology portfolio in the last mile inexpensive 2W personal mobility market in 2018.

The government amended the scheme for faster adoption and manufacturing of electric vehicles in India Phase II (FAME India Phase II), increasing the demand incentive for electric two-wheelers to Rs 15,000 per KWh from the previous uniform subsidy of Rs 10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids, except buses.

Greaves Cotton’s management stated on May 4 that the firm’s new business (e-mobility and non-auto industry) continues to develop and contributes 30% to the entire business of the company. Greaves E-mobility has witnessed more growing velocity, with Ampere gaining popularity as demand for its electric two-wheelers (electric scooters) and electric three-wheelers has increased (electric rickshaws).

NEWS SOURCE

ALSO READ : MindTickle is the newest to enter India’s unicorn count, which now stands at 50