IIFL is bullish on Amtek Auto and has recommended buy rating on the stock with a target of Rs 212 in its July 8, 2010 research report.
"Amtek Auto has a diversified business profile, catering to a vast customer base (top five customers contributing less than 15% of revenues). Consolidated revenues have witnessed a CAGR of 34% over the last five years and we expect it to grow by 11% and 10% in F6/11 and F6/12 respectively (PAT CAGR of 45.6% over F6/09 to F6/12). Concerns on international business are largely in the price, in our opinion. Over the past one year, Amtek Auto has under performed its peers (Bharat Forge, Bosch, Motherson Sumi) by a huge margin. Even based on our bear case scenario, the stock trades at a P/E of 12x (P/E of 8x based on bull case). We initiate coverage with buy rating with a target of Rs 212; upside of 19.1% in 6-9 months," says IIFL 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.
