Sekhar told CNBC-TV18, "Ahmednagar Forgings is the largest forgings manufacturer in the small and medium component segment. As the auto demand has revived, the numbers have started improving for Ahmednagar Forgings and they will look stronger and stronger and may hit a double digit volume growth going forward. The industrial capex as it revives in the next two quarters or so will also add weight to this company's topline."
He further added, "The margins have already started improving. The return ratios have always been good and will continue to be attractive. This is an excellent value stock available at about five times 12 months forward earnings. The merger synergies as and when that happens within the Amtek group will also add lot of value to the shareholders of Ahmednagar Forgings. It is a buy for long term investors with target price of Rs 90 and today I continue to hold this stock."
