Buy Clutch Auto: P-Sec

P-Sec report on Clutch Auto:

Clutch Auto posted strong topline growth of 84% on back of robust domestic and exports demand. EBIDTA margins remained flattish at 15.3% during the quarter. While bottomline grew by 76% during the quarter. Going ahead the company has given robust guidance for topline of around Rs.3500mln, 50% growth y-o-y and EBIDTA margin improvement on account of better sales mix. Given the robust guidance and the company’s de-risked business model we believe the company is well placed to grow despite the any domestic slow down. The stock trades at 7x its FY08P earnings, we maintain BUY.