Buy Competent Auto; target of Rs 115: Firstcall Research

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

“Competent Automobiles Company Limited was incorporated in 1985 and is engaged in trading and servicing Maruti Suzuki vehicles in India. The company operates in two segments, Showroom and Services & Spares. The Showroom segment is involved in the purchase and sale of vehicles manufactured by Maruti Suzuki India Limited. The Services & Spares segment is engaged in servicing of Maruti vehicles, and sale of its spare parts. The company operates five showrooms and three workshops in Delhi; two showrooms and a workshop in Haryana; and two showrooms and two workshops in Himachal Pradesh. Maruti Genuine Accessories (MGA) is new initiative offered by Maruti Suzuki for high quality accessories at reasonable rates. It has approved and certified by Maruti Suzuki for compatibility with various models. The MGA consists of wide variety and also range of the products.”

“Competent Automobiles Company Limited was incorporated in 1985 and is engaged in trading and servicing Maruti Suzuki vehicles in India has reported its financial results for the quarter ended 31 December, 2014. The company’s net profit jumps to Rs. 36.17 million against Rs. 28.69 million in the corresponding quarter ending of previous year, an increase of 26.09%. Revenue for the quarter rose by 12.91% to Rs. 2655.00 million from Rs. 2351.50 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 5.89 a share during the quarter as against Rs. 4.67 over previous year period. Profit before interest, depreciation and tax is Rs. 75.89 million as against Rs. 60.73 million in the corresponding period of the previous year.”

“At the current market price of Rs. 100.50, the stock P/E ratio is at 5.53 x FY15E and 4.75 x FY16E respectively. Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 18.19 and Rs. 21.17 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 6% and 19% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 3.33 x for FY15E and 3.06 x for FY16E. Price to Book Value of the stock is expected to be at 0.68 x and 0.60 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs. 115.00 for Medium to Long term investment”, says Firstcall research report.

Read More