Amtek Auto Share Price trading near its 3month high

Amtek Auto Share price has touched a 52 Week high of Rs. 176.05 on 03- Aug-15 and 52 week low of Rs. 25.20 on 04-Sep-15. The company made its current 3month high of Rs. 43.25 on 28 Apr 2016 and is trading near this price in recent trading sessions.

Amtek Auto has shown sharp fall of 78 per cent in last one year,

Due to the poor performance of the company from June quarter ending 2015,

The stock was removed from the derivatives list.

There are market rumours of the company being on the verge of a default on its huge debt payment.

Amtek Auto Ltd was incorporated in the year 1988 is headquartered in New Delhi, is one of the largest integrated automotive component manufacturers in India with a strong global presence. The company has world class facilities in Europe, North America and India. The company has significant expertise in forging, gravity and high-pressure aluminum die casting, grey and ductile iron casting and machining and sub-assembly. The company`s products and services include connecting rods assly/ piston assly, case component assemblies and forging. Amtek Auto also manufactures components for non-auto sectors such as the specialty vehicles, aerospace, railways, agricultural and heavy earth moving equipment. The Company operates in segments which includes Automotive Components.

Forging division has manufacturing facilities in:

Maharashtra

Northern Capital Region

Madhya Pradesh.

Automotive Machining Division has facilities in:

Rajasthan

Uttrakhand

Maharashtra

Missouri

Financial update

During the quarter ended 31st March 2016, the net sales of the company reported a decline of 46.65 per cent on Y-o-Y basis to Rs.651.02 cr as against Rs.954.68 cr during the corresponding quarter last year.

The operating performance of the company witnessed a loss of Rs. 26.69 cr on Y-o-Y basis as against a profit of Rs.133.31 cr in the same quarter last year. This is mainly due decline in sales of the company by 46.65 per cent.

The company has reported a net loss of Rs.(-528.69) cr as on quarter ended 31st March 2016, compared to a net profit of Rs.129.82 cr during the corresponding quarter last year.

The Fii’s have reduced their position form 13.17 per cent to 3.22 per cent which give us sign of alert for the stock.

During the quarter ended 31st March 2016, the interest paid by the company has increased to Rs. 289.81 cr as against Rs.171.70 cr during the corresponding quarter last year.

Rising interest cost depicts that the company has increased its debt. However, proper deployment of debt is important along with rise in sales and profit otherwise rising interest will eat the profitability of a company.

Amtek Auto share price has been consistently trading at a very low range since September 2015 and has not shown much signs of recovery. Therefore, unless the fundamentals of the company recover and Amtek Auto share price show strength it will be wise to wait before investing in the Company.

A writer by day and a passionate reader by night. Writing just doesnot fill my pocket but it also fills my heart. With over 4 years experience in Stock Market, I am a full time content writer with www.dynamiclevels.com