E-Investing India - Online Community for Investors and Traders  

Go Back   E-Investing India - Online Community for Investors and Traders > Stock Markets > Individual Stocks
Read All Rules Contact Site Administrator

Individual Stocks Discussion Forum for Individual Stocks. If you have query/suggestion on more than one stock, which are UNRELATED TO EACH OTHER, USE SEPARATE THREADS.

Reply
 
Thread Tools Display Modes
  #1  
Old 26th August 2008, 01:41 PM
Junior Member
 
Join Date: Jan 2008
Posts: 15
Rep Power: 10
Vn2008 is on a distinguished road
Default Amtek Auto



Today, Amtek Auto touched 52-week low.

This stock has been recommended by many a lot analysts and I keep hearing that it is a fundamentally good company.

Is there more downside left for this stock?

What does the technical chart suggest?
Reply With Quote
  #2  
Old 26th August 2008, 07:37 PM
Administrator
 
Join Date: Sep 2006
Posts: 11,063
Rep Power: 7498
Alchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond repute
Default

There is a merger pending for this company.

Amtek Auto is going to merge with 5 other companies.

Of this, 3 are unlisted.

Listed companies:
Amtek India
Ahmednagar Forgings

Unlisted companies:
Amtek Crankshafts
Amtek Castings
Amtek Ring Gears

Post-merger, the company will have 22.41 crore shares outstanding compared to current 14.1 crore shares.

If we consider the combined entity, the eps for last 4 quarters works out to be around Rs 21.25 (excluding extra-ordinary items).

This is the figure mentioned at the Amtek Auto's website.

At Rs 174, the stock is available at around 8 times TTM (Trailing Twelve Months) earnings.

Many other auto ancillary stocks are trading at similar valuations.

Post-merger, AmteK Auto will be one of biggest auto ancillary company in India, with sales of around $1 billion.

Amtek is also expanding the capacities of its various plants.

This year is expected to be difficult for auto stocks as rising interest rates and inflation will have a negative impact on volumes.

Thus, I feel Amtek Auto may have some more downside left.

6-7 times trailing earnings should be a good entry point (Rs 130 - Rs 150).

One can expect good returns in the next 3-5 years, but nothing extraordinary.

My guess is that this stock can give around 20%-25% CAGR over the next few years.
Reply With Quote
  #3  
Old 4th January 2010, 09:42 AM
Regular Member
 
Join Date: Apr 2008
Posts: 963
Rep Power: 1284
paran has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond repute
Default

Now also it is available at the same price. Looks like it is good to enter at this rate. Planning to buy some @165~170 range.
Any comments from our gurus??

business-standard
Quote:
Amtek is amalgamating five group companies with itself, bringing all the forgings and castings units under the ‘Amtek Auto’ umbrella. This is expected to lead to better integration of operations, clearer efficiencies in sourcing and negotiations, and greater transparency in operations. Amtek Auto is valued at 15x FY11e earnings, which is a 25 per cent discount to the target PE multiple for Bharat Forge. The target price is Rs 254 (without considering the impact of its amalgamation with four other group entities).
Reply With Quote
  #4  
Old 4th January 2010, 09:53 AM
Regular Member
 
Join Date: Aug 2009
Posts: 661
Rep Power: 20
marketmover has a spectacular aura aboutmarketmover has a spectacular aura about
Default

^^^^^

Amalgamation Called off, I heard somewhere that a court ruling has disallowed amtek to merge its group companies, kindly confirm this news before taking any decision
Reply With Quote
  #5  
Old 4th January 2010, 11:29 AM
Regular Member
 
Join Date: Apr 2008
Posts: 963
Rep Power: 1284
paran has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond reputeparan has a reputation beyond repute
Default

Quote:
Originally Posted by marketmover View Post
^^^^^

Amalgamation Called off, I heard somewhere that a court ruling has disallowed amtek to merge its group companies
Hi,
Thanks for the input.
That report also mentions that
Quote:
The target price is Rs 254 (without considering the impact of its amalgamation with four other group entities).
Reply With Quote
  #6  
Old 19th August 2015, 03:26 PM
Senior Member
 
Join Date: Jul 2010
Posts: 1,867
Rep Power: 4706
magnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond repute
Default

Parent of Castek and JMT Auto and Metalyst Forgings (earlier Ahmednagar Forgings) facing the wrath.
Reply With Quote
  #7  
Old 20th August 2015, 01:54 PM
Administrator
 
Join Date: Sep 2006
Posts: 11,063
Rep Power: 7498
Alchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond repute
Default

There is something fishy going on with this group.

It is strange that from last 2 quarters the group companies have suddenly started reporting weak numbers.
Reply With Quote
  #8  
Old 20th August 2015, 03:33 PM
San Yad's Avatar
Senior Member
 
Join Date: Apr 2008
Posts: 1,704
Rep Power: 1123
San Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond repute
Default

Where should we enter for a little risk?

I am sure there are lots of other auto companies which are not doing well also surviving.

What I feel that this company is well known (may be due to FNO segment).

Bottom line is: Is Rs 50 reasonable even fishy balance sheet?

Or just do not touch for good sleep in night.

Happy Investing!
Reply With Quote
  #9  
Old 20th August 2015, 06:31 PM
Senior Member
 
Join Date: Jul 2010
Posts: 1,867
Rep Power: 4706
magnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond reputemagnet has a reputation beyond repute
Default

3 reasons why Amtek Auto crashed 50% in the last 2 days | Business Standard News

Similarly I caught Koutons Retail at 49 from 500 downfall. Then tried to average out at 19,16 and 8 levels. Now what I have is 14 grands not even worth a rupee.
Reply With Quote
  #10  
Old 20th August 2015, 06:46 PM
Senior Member
 
Join Date: Mar 2008
Posts: 1,350
Rep Power: 781
ramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond repute
Default

Quote:
Originally Posted by San Yad View Post
little risk?

just do not touch for good sleep in night.

Happy Investing!
Sanyad jee I wish you won't fall prey to such trades and I know you won't.

ramK
Reply With Quote
  #11  
Old 20th August 2015, 08:52 PM
San Yad's Avatar
Senior Member
 
Join Date: Apr 2008
Posts: 1,704
Rep Power: 1123
San Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond reputeSan Yad has a reputation beyond repute
Default

Quote:
Originally Posted by ramkasi View Post
Sanyad jee i wish you wont fall pray to such trades and i know you won't.

ramK
Thanks. No Ramji, I would not catch this sharp knife.

My worry is not why it is falling but we have so many similar companies which can show color anytime. Whom to trust and invest then?

Few days ago we were discussing the circuit over circuits on one counter.

What I learnt from this is that just come out as soon as you can of any script which behave abnormal.

PS: I have no investment in this stock.


Happy Investing!
Reply With Quote
  #12  
Old 21st August 2015, 11:26 AM
Administrator
 
Join Date: Sep 2006
Posts: 11,063
Rep Power: 7498
Alchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond repute
Default

Quote:
Originally Posted by San Yad View Post
Whom to trust and invest then?
Sometimes promoters take excessive risks and mess up the finances of their respective companies. Their primary intention is not to defraud investors, but once things start getting really bad, they are tempted to "make things appear better" than they are in reality.

My feeling is Amtek Auto is one such case. The company did quite well in the 2003-2008 economic boom and created lot of wealth for investors. Thereafter it took excessive risks and now is facing serious financial problems.

As mentioned in Business Standard article, the company is already late in making interest payments:

Quote:
The company also did not deny the fact that it has been classified as a SMA-2 (Special Mention Accounts), which is given whenever a company does not make interest payment for over 60 days.
For an investor, I think it is better to wait for some more clarity to emerge before going long on this stock.

Technically the stock is oversold and may bounce back to 80-90.
Reply With Quote
  #13  
Old 4th September 2015, 08:42 AM
Administrator
 
Join Date: Sep 2006
Posts: 11,063
Rep Power: 7498
Alchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond repute
Default

Yesterday there was some real delivery selling in this stock.

Swiss Finance sold 27.39 lac shares and Barclays sold 12.16 lac shares.

Today may be another bad day for the stock.
Reply With Quote
  #14  
Old 4th September 2015, 04:01 PM
Senior Member
 
Join Date: Mar 2008
Posts: 1,350
Rep Power: 781
ramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond reputeramkasi has a reputation beyond repute
Default

Quote:
Originally Posted by Alchemist View Post

Today may be another bad day for the stock.
Unexpectedly stock done well at the end with 4% gain while there is blood bath around.
Reply With Quote
  #15  
Old 7th September 2015, 10:01 AM
Administrator
 
Join Date: Sep 2006
Posts: 11,063
Rep Power: 7498
Alchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond reputeAlchemist has a reputation beyond repute
Default

Quote:
Originally Posted by ramkasi View Post
Unexpectedly stock done well at the end with 4% gain while there is blood bath around.
Mostly day trading happened in this stock on Friday.

Delivery was less than 10%.

Goldman Sachs sold 16.4 lac shares on Friday. At the end of last quarter, Goldman Sachs owned 41.7 lac shares. So it may have more shares to sell.

There are many big institutions holding Amtek Auto and some of them may exit too.

LIC is largest non-promoter holder in Amtek Auto with 84 lac shares.
Reply With Quote
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
ANG Auto Limited MMK Individual Stocks 2 8th April 2008 06:12 AM
Bajaj Auto & ITC (Feeling) BULLS Individual Stocks 3 22nd March 2008 02:53 PM
Porwal Auto Components IPO gouravadv Initial Public Offerings - IPO Market 8 24th December 2007 12:51 PM
Aries Agro, Manaksia, Porwal Auto, Precision Pipes BULLS Initial Public Offerings - IPO Market 3 22nd December 2007 04:20 PM
Lumax Auto IPO Alchemist Initial Public Offerings - IPO Market 0 14th December 2006 08:30 PM


All times are GMT +5.5. The time now is 08:12 PM.


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.6.0
Ad Management plugin by RedTyger