Angel Research has maintained Buy on Amtek India in its Feburary 1 2008 report. " Amtek India has announced robust 2QFY2008 results, with Net Sales and Profits increasing 41% and 26% to Rs 248 crore and Rs 36 crore, respectively. On a consolidated basis, for 2QFY2008 Amtek reported in-line results. Amtek reported a robust 28% growth in Topline to Rs 304 crore. Operating Margins improved to 24.5% (22.9%). Amtek reported a 22% growth in Net Profit to Rs 39 crore. We had estimated Rs 307 crore Net Sales and Rs 40 crore Net Profit for 2QFY2008. We estimate Amtek to clock a CAGR growth of 25% in Topline and around 22% in Bottom-line over the next two years. Further, going ahead, on the back of capacity ramp up, improvement in capacity utilisation and robust exports, the company would be able to clock higher profitability. However, integration risks, given the acquisition driven growth strategy, pose a downside risk to our Revenue and Earning estimates. On a consolidated basis, the stock is trading at 11.8x FY2008E and 9.5x FY2009E Earnings. We maintain a Buy on the stock, with a target Price of Rs 190."says Angel Broking Research report.
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