Buy Amtek Auto; target of Rs 158: Asit C. Mehta

6067 Investors following Amtek Auto. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Amtek Auto; target of Rs 158: Asit C. Mehta

Asit C. Mehta is bullish on Amtek Auto (AAL) and has recommended buy rating on the stock with a target of Rs 158 in its February 15, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Sanghvi Movers; tgt of Rs 201: Anand Rathi Securities Buy BGR Energy; target of Rs 812: Way2Wealth Buy Pratibha Inds; target of Rs 108: Anand Rathi Securities ALSO READ See previous views by Asit C. Mehta See what other Experts & Brokerages are saying about Amtek Auto See messages about Amtek Auto Amtek Auto BSE | NSE 31/05/12 Are Mutual Funds betting on Amtek Auto?

Asit C. Mehta is bullish on Amtek Auto (AAL) and has recommended buy rating on the stock with a target of Rs 158 in its February 15, 2011 research report.

"Amtek Auto (AAL) reported better than expected numbers for Q2 FY11.AAL's revenue grew by 27.1% on YoY basis to Rs 11,483.9 million. EBIDTA margins improved 200 bps on YoY basis to 25.7% .Net profits increased 59.8% on YoY basis to Rs 931.7 million."

"For Q2 FY11, AAL's revenue increased to Rs 11,483.9 million from Rs 10,728.5 million in Q1 FY11 - an increase of 7% on q-o-q basis. The EBIDTA margins in Q2 FY11 stood at 25.7%. The margins declined marginally by 50 basis points on q-o-q basis. AAL reported EBIDTA of Rs 2,946.8 million as compared to 2,807.7 million in Q1 FY11. Decline in margins is attributable to decline in margins of its overseas subsidiaries Amtek Investments U.K. Ltd and Amtek Deustchland Gmbh ltd. Net Profit recorded was Rs 931.7 million as against Rs 917.1 million in previous quarter."

"The scenario in the domestic market is encouraging. However, given sluggishness expected in European market, we assign multiple of 9x to its FY12 EPS of Rs 16.6 to arrive at value of Rs 149 per share. We have valued AAL 26.3% stake in Amtek India at Rs 9 per share (20% discount to Current market cap). We thus arrive at value of Rs 158 per share for AAL. We give "Buy" recommendation on the stock for a target price of Rs 158. At CMP of 119, the stock trades at a P/E of 10.4x its FY11 EPS and 7.2x its EPS of FY12," says Asit C. Mehta research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment