Yup, both of them generate cash. But the cash generated by Hero is higher(by multiples) than one generated by Greaves. Hero earns around 3000-3500 Cr per year whereas Greaves earns 150-200 Cr per year. There is simply no comparison. Hero has a better brand name, distribution network, customer recognition and trust. Also has a huge stake in Ather. Also, it seems oil driven two wheelers will take at least a decade to go out of trend, and demand for electrics won’t likely go up exponentially as most people envision.
I don’t mean to say that the company won’t do well. But for it to do well, management has to do extremely well.
The growth rate as of now is of little significance. The market is in its infancy and volumes are low(in a few thousands, it seems). Its easier to have high growth QoQ at low volumes. Much harder to do at scale and especially when competitors come to have a share of the pie.
And It would be safe to say that it is financially weakest (by miles) compared to the giants it is taking on. Every other day I read news about some other competitor(Yamaha, Honda, Bajaj, Ola, TVS, etc) entering this market. Not everyone will do well as there is too much competition. Odds are stacked against it and will be a hell of an achievement if they are standing in the market after a decade.
Betting on the asymmetry provided by this investment should not make one blind to the risks from it.
Disclosure: Not invested but tracking keenly