Amtek Auto in fast lane
Shares of Amtek Auto are up 7.6% or by Rs. 12 per share, and are currently trading at Rs. 169, when broader markets are marginally in the green, trading higher by 50 basis points. Over 24 lakh Amtek Auto shares have changed hands on the NSE till noon, as against 2 week average daily volume of about 10 lakh shares. Other group companies trading higher are Amtek India (up 5% at Rs. 66) and JMT Auto (up 2% at Rs. 148) and while Ahmednagar Forgings remains weak (down 2% at 306).
Following September year end for financial reporting, Amtek Auto’s first quarter ended 31st December 2014 consolidated revenue grew 29% QoQ to Rs. 4,788 crore while EBITDA grew 68% QoQ to Rs. 1,024 crore. However, higher depreciation burden and interest outgo reduced consolidated net profit by 13% QoQ to Rs. 172 crore. Thus, Q1 consolidated EPS stands at Rs. 7.87, as against Rs. 39.33 for FY14. Company has secured new order wins to the tune of Rs. 2,600 crore in the previous quarter.
Amtek Auto is a global auto component giant with presence spanning Asia, Europe and America. Huge debt (Rs. 15,000 crore as of 30th September 2014, on consolidated level) has marred its bottomline lately. Hence, at a PE multiple of around 5 times, it remains one of the cheapest auto component manufacturer in the listed space.