Angel Broking has maintained its neutral rating on Sona Koyo Steering Systems in its September 16, 2009 research report.
"Sona Koyo is the largest manufacturer of steering systems in India, catering to passenger cars, utility vehicles and light commercial vehicles. The company has technical and financial collaboration with JTEKT Corporation, Japan, which is the largest producer of passenger-vehicle steering systems in the world. Overall, the Auto Industy is exhibiting a positive turnaround over the last few quarters. Hence, on increasing volumes and on improving operating leverage, we expect Sona Koyo to clock an EPS of Rs0.7 in FY2010E and Rs1.5 in FY2011E. At the CMP, the stock is trading at fair valuations of 10.8x FY2011E Earnings. Hence, we maintain a 'Neutral' view on the stock," says Angel Broking's research report.
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