Amtek Auto at 6-year high

Amtek Auto is almost the ‘star’ on the BSE today. The stock which had closed yesterday at Rs.221.45, opened a tad higher at Rs.230.55, going on to hit a new 52-week high at Rs.265.70 – a 6-year high.

The stock has hit a new high after FII Nomura stated that it has started coverage on the stock with a ‘buy’ rating, giving a target price of Rs.416. Nomura has called it a leveraged player on a turnaround in the domestic auto sector.

Another factor working in favor of the stock today long with Nomura’s Buy call is the ECB reducing interest rates and launching measures to pump money into the sluggish euro zone economy. With over one third of its revenue coming from Europe, there is hope that the company will benefit if and when Europe revives with these measures.