Bharat Seats is a JV between India’s Relan group, Maruti Suzuki and Suzuki Motors for manufacturing of car seats for Maruti Suzuki. It also makes moulded floor carpets and Two Wheeler Seats for Maruti and Suzuki. The total promoter stake is at 74.34% of which MSIL and SMC hold 14.81% each. Another group company of Bharat Seats, Sharda Motors holds 28.66%.

For Q4FY15, the company posted a 22% (YoY) rise in net sales at Rs.190 crore and ended the quarter with a 43% rise in net profit at Rs.2.48 crore. EBITDA was at Rs.9 crore, up 12% and margins were lower at 4.74% v/s 5.16%. The company ended the fiscal with a net profit of Rs.8 crore, up 14%.

This company makes products mainly for Maruti and Suzuki thus its fortunes are tied deeply with them. It remains a small cap company with an equity of Rs.6.28 crore and market cap of just Rs.110 crore. It is sitting on a reserve of Rs.40 crore. Its margins are wafer thin and that is the biggest dissuading factor in this stock – NPM of the company is always just marginally above 1% but less than 1.5%. NPM for current Q4 was also thin at 1.3% and that for the fiscal at 1.15%.