Buy Amtek India: Edelweiss

Edelweiss research has come out with report on Amtek India . It has maintained buy rating on the stock, in a report dated on October 31, 2007.

"Amtek India (AIL) reported strong Q1FY08 numbers, with consolidated revenues at INR 2.8 billion, growing 38.6% Y-o-Y. EBITDA (including other income) grew 54.6% Y-o-Y to INR 718 million. EBITDA margins grew 263bps Y-o-Y and 13bps Q-o-Q to 25.5%. Net profit for the quarter stood at INR 383 million, up 47.7% Y-o-Y. The company is likely to amalgamate Amtek Castings (a promoter-held company) with itself to further augment its capacity by another 25,000 tpa. Finally, the company is looking at all the possibilities for the eventual merger with Amtek Auto, the group’s flagship company. Clarity on the merger is likely to come by early CY08. At CMP of INR 168, the stock is trading at a P/E of 13.7x and 10.8x our EPS estimate of INR 12.3 and INR 15.7 for FY08E and FY09E respectively. We continue to maintain our ‘BUY’ recommendation." says Edelweiss research report.  

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