AMTEK AUTO
Equity : 26.69 Cr, BSE Code : 520077, CMP : 417
BUY AMTEK AUTO @ 415 / 418 Target
455 / 458
Amtek Auto Limited (AAL), which was incorporated as a public limited
company (under the name ��A.M.Metal Cast Limited�) in 1985, is among the
largest manufacturer of Forgings in India.
The Company produces more than 300 varieties of components and
assemblies for use in engine, transmission and suspension systems. The major
categories of components include connecting rod assemblies (largest in India),
steering knuckles, suspension and steering arms, CV joints, crankshaft
assemblies for two wheelers, torque links, machined aluminum case components
and a wide range of precision forgings. In order to take advantage of new
business opportunities & to penetrate & expand in some of the most
developed markets of the world, the company has done more than 10 acquisitions
in the last decade. The company (including its subsidiaries) has 26
manufacturing facilities spread across India, UK, USA and Germany.
Global structural changes in automobile industry have thrown up huge
outsourcing opportunities for Indian Forging companies. Indian Forging
Industry�s exports grew by almost 30% to around $250 million in 2005 and are
expected to increase to US $3 billion by 2015. Moreover, the domestic demand
for Indian Forging companies is also expected to grow in double digits on
account of strong demand for automobiles led by continued expansion in the
Indian Economy.
� Amtek Auto in order to benefit from the large global demand for
forgings has been aggressively expanding its capacities in India
by installing world class forging & machining units on one hand, on the
other hand it has been very aggressive in acquiring forging companies &
capacities across various geographies. The company has done more than 10
acquisitions in the last decade with consolidated sales growing at a CAGR of
59% (from FY1996 to FY2005).
Amtek Auto is expanding capacities to meet the demand of overseas subsidiaries
and domestic demand.
Sales and NP for year ended 06 � 07 were 1195.7 Cr & 235.8 Cr. Sales and NP for latest Quarter 311.7 Cr & 63.8 Cr.
On
YOY basis NP has increased by 45 % & based on quarter latest its increased by 25 %