Buy Amtek India; target of Rs 76: Firstcall Research

3399 Investors following Amtek India. Share this News with them.

0

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

Buy Amtek India; target of Rs 76: Firstcall Research

Firstcall Research is bullish on Amtek India and has recommended buy rating on the stock with a target of Rs 76 in its September 28, 2010 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about Amtek India See messages about Amtek India Amtek India BSE | NSE 31/05/12 Are Mutual Funds betting on Amtek India?

Firstcall Research is bullish on Amtek India and has recommended buy rating on the stock with a target of Rs 76 in its September 28, 2010 research report.

"Amtek India (AIL), one of the flagship companies of Amtek group, is an integrated automotive component manufacturer with facilities for casting, machining, and sub- assemblies at locations in India and the UK. The company was incorporated in 1992. The Company plan to expand its casting capacities from 1,05,000 t.p.a. to 2,25,000 t.p.a. And also planning to foray into high precision components like cylinder blocks of bigger engines, cylinder heads, transmission covers etc. This will ensure sustainability of higher margins in the years to come. The company's net sales and net profit are expected to grow at a CAGR of 18% and 25% over FY09 to FY12E."

"At the market price of Rs 63.45, the stock is trading at 8.88 x and 7.54 x for FY11E and FY12E respectively. On the basis of EV/EBDITA, the stock trades at 2.47 x for FY11E and 2.20 x for FY12E. Price to book value of the company is expected to be at 0.49 x for FY11E and 0.46 x for FY12E respectively. EPS of the company is expected to be at Rs 7.15 and Rs 8.41 for the earnings of FY11E and FY12E respectively. We recommend 'BUY' this stock with a target price of Rs 76 for medium to long term investment," says Firstcall 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