HI-TECH GEARS

Hi Tech Gears is engaged in the business of manufacturing an auto component. The company is part of Hi–Tech Group that has business interest in area of robotics, artificial intelligence and machine vision technologies. The company posted a set of very good numbers for Q4FY15. Net sales for the quarter rose 16% at Rs.107 crore. EBITDA was up 62% at Rs.13 crore and improvement in margins was pretty good at 12.15% v/s 8.69%. The company’s interest cost has come down 58%. It ended Q4 with a net profit of Rs.7 crore, up 75%. It ended FY15 with a net profit at Rs.18 crore, up 12%.

The company’s market cap stands at Rs.550 crore. The stock does not seem to have caught any fancy with the FIIs as they do not have a single share in the company. Promoters stake is at 55.30%. EPS for Fy15 stood at 29.3 and this discounts the current price by around 29 times. It competes directly with Kirloskar Oil Engines and Sundaram-Clayton.