STOCK TO WATCH

• HOLDING PERIOD – ONE MONTH PLUS

• GREAVES COTTON

• Present Price – Rs.205

• Projected Price – Rs.248-252

Greaves Cotton Ltd (GCL) is an independent diesel engine manufacturer for the three-wheeler segment in the automotive industry (50% of revenues), Infrastructure Equipment manufacturer (25% of revenues), Industrial Diesel Engines for power generation (12% of revenues) and Agricultural Machinery (11% of revenues). During the quarter the company started supplying twin cylinder engines to Piaggio for its newly launched commercial vehicle. We believe the twin cylinder engine and single cylinder engine supplies to Tata Motors that is expected to start from December 2009 would be volume growth driver for the company. With improvement in infrastructure activity, especially road construction and real estate we expect infrastructure segment to bounce back sharply. BUYING IS ADVISED FOR MEDIUM TERM.