ATS Company Reports: Amtek Access Company Reports here: http://www.adityatrading.in/Research-Reports.aspx

2. Company Details
Amtek Auto Ltd is one of the largest integrated automotive component manufacturers in India with a strong global
presence. The company has world class facilities in India, Europe and North America. They have significant expertise
in forging, grey and ductile iron casting, gravity and high-pressure aluminum die casting and machining and sub-
assembly. They also manufacture components for non-auto sectors such as the railways, specialty vehicles,
aerospace, agricultural and heavy earth moving equipment. The company is headquartered in New Delhi.
The company operates in one segment, which includes Automotive Components. The company's products and
services include connecting rods assly/ piston assly, case component assemblies and forging.
The Company has engineered component product portfolio including the manufacturing of complex components for
engines, transmissions, suspensions and chassis for passenger cars, Two or Three wheelers, light and heavy
commercial vehicles. In June 2013, the Company acquired Neumayer Tekfor Group. In October 2013, Amtek Auto
Limited acquired a 26.61% stake in JMT Auto Ltd.
The current market capitalization stands at Rs 3,785.06 crore. The company has reported a standalone sales of Rs
976.33 crore and a Net Profit of Rs 74.37 crore for the quarter ended Sep 2014.
Market Cap (Rs Cr) – 3785.06
Company P/E – 11.7
Industry P/E – 29.91
Book Value (Rs) – 232.46
Dividend (%) – 25 %
EPS (TTM) – 14.68
Dividend Yield (%) – 0.29%
Face Value (Rs) – 2

3. Shareholding Pattern
Category No. of Shares Percentage
Promoters 107,912,650 48.98
Foreign Institutions 81,757,978 37.11
Other Companies 12,162,350 5.52
Financial Institutions 9,008,256 4.09
General Public 7,297,642 3.31
NBFC and Mutual
Funds
1,107,566 0.50
Others 796,699 0.36
Foreign - NRI 273,287 0.12
Foreign - OCB 1,500 0.00
Mutual Fund Name
City National Rochdale Emerg Mkts Fund(1.38%)
Mackenzie Cundill Recovery Fund(0.98%)
Market Vectors® India Small-Cap ETF(0.83%)
DFA Emerging Markets Value Portfolio(0.70%)
Vanguard Total Intl Stock Idx Fund(0.40%)

4. Industry Info. and Analyst Views
The valuations look reasonable at this stage. Out of 80 auto ancillary stocks, the price-to-earnings, or
PE, ratios of 63 are lower than the figure of 21.36 for the industry as a whole.
The PE ratio shows the price paid for a stock relative to earnings per share. It is used to value
companies.
Experts are bullish on this sector for 2014-15. "The outlook is bright. An uptick in the domestic auto
industry, besides a pick-up in replacement demand, will give a fillip to the auto ancillary industry," says
Silky Jain, research analyst, Nirmal Bang Securities.
Prayesh Jain, vice president research, India Infoline, echoes Silky Jain. "The trend is expected to get
stronger over the next one year as political stability emerges and global markets continue to recover
from the financial crisis. Domestic revenues, too, will pick up from the second half of 2014-15.“
FACTORS TO WATCH
"Factors to be considered while investing in auto ancillary companies are which segment they service
and its growth prospects. A diversified customer base and wide geographical presence are preferable
too. One must also look at the management's record and the company's valuation," says Jain of India
Infoline.
Yaresh Kothari, analyst, automobile, Angel Broking, says, "The economic cycle is an important factor.
One should invest at the start of an upswing in the economy and prefer companies that have a
technological edge, good brands with pricing power, strong relationships with original equipment
manufacturers and a diversified business model.“

5. Balance Sheet
Sep ' 13 Jun ' 12 Jun ' 11 Jun ' 10 Jun ' 09
Sources of funds
Equity share capital 43.72 44.11 46.63 40.34 28.20
Share application
money - - - 215.40 49.88
Reserves & surplus 4,754.12 4,339.18 4,219.11 3,604.47 2,514.62
Loan funds
Secured loans 5,864.77 1,535.00 1,141.76 888.08 880.42
Unsecured loans 167.41 1,964.86 2,126.13 1,827.81 2,472.09
Total 10,830.01 7,883.16 7,533.64 6,576.09 5,945.21
Uses of funds
Fixed assets
Gross block 7,386.88 4,787.38 4,106.51 3,773.93 3,003.35
Less : accumulated
depreciation 1,217.83 952.35 759.85 574.42 410.91
Net block 6,169.05 3,835.03 3,346.66 3,199.51 2,592.45
Capital work-in-
progress 1,003.39 529.16 113.85 263.30 660.25
Investments 1,810.74 1,129.06 1,106.34 745.65 493.50
Net current assets
Current assets, loans
& advances 3,203.04 4,123.44 3,411.16 2,778.80 2,567.38
Less : current
liabilities &
provisions 1,356.21 1,733.52 444.37 411.17 368.37
Total net current
assets 1,846.83 2,389.92 2,966.79 2,367.63 2,199.02
Total 10,830.01 7,883.16 7,533.64 6,576.09 5,945.21

6. Profit and Loss Account
Sep ' 13 Mar ' 02 Mar ' 01 Mar ' 00 Jun ' 12
Income
Operating income 3,019.38 222.23 139.91 89.66 2,310.66
Expenses
Material consumed 1,909.72 139.29 80.79 49.94 1,414.20
Manufacturing expenses 75.21 5.51 3.67 3.64 61.79
Personnel expenses 116.61 12.11 7.10 6.07 92.95
Selling expenses - 1.71 1.00 0.79 -
Administrative expenses 83.52 5.35 4.37 3.40 77.79
Cost of sales 2,185.06 163.97 96.93 63.84 1,646.72
Operating profit 834.32 58.26 42.99 25.82 663.94
Other recurring income 106.60 0.94 0.34 0.36 143.26
Adjusted PBDIT 940.91 59.20 43.33 26.18 807.20
Financial expenses 275.32 15.90 12.80 7.54 185.51
Depreciation 283.74 18.15 12.14 8.22 211.85
Other write offs - 0.26 0.51 0.37 -
Adjusted PBT 381.86 24.89 17.88 10.04 409.84
Tax charges 120.99 8.70 1.47 0.91 118.28
Adjusted PAT 260.88 16.19 16.42 9.13 291.56
Non recurring items 189.85 - -0.27 - -
Reported net profit 450.72 17.17 16.15 9.05 291.56
Earnigs before
appropriation 638.68 18.37 26.23 13.42 299.67
Equity dividend 9.86 1.55 1.26 0.99 10.15
Preference dividend - 2.16 1.13 0.74 -
Dividend tax 1.07 0.22 0.36 0.27 0.78
Retained earnings 627.75 14.44 23.48 11.42 288.74

7. Company Index Comparison

8. Dividend and Bonus History

9. Company Forecast

10. Days BSE NSE
30 200.46 200.57
50 191.43 191.43
150 217.76 217.89
200 198.48 198.61
Short Term Mid-Term Long Term
Trend Neutral Neutral Bullish
Resistance 216 264 264
Spread/Res. -17% -32% -32%
Spread/Supp. 15% 15% 34%
Support 156 156 134
Technical Indicators
MACD – Buy
RSI – Neutral
ROC –Sell
ATR - Buy
Important Ratios
PBIT – 17.61 v/s 18.42
ROCE – 6.06 v/s 7.55
Net Profit Margin – 14.41 v/s 11.88
Return on net worth – 9.39 v/s 6.55
Investment turnover – 4.29 v/s 3.98
Simple Moving Average Support and Resistance

11. Recommendations
Neutral on this stock
When we have better stocks with better growth potential and better fundamentals

12. Conclusion
I prefer Banco Products over Amtek Auto due to the following reasons :
Debt of the company is increasing
Expenses of the company is increasing
Less dividends when compared with Banco
Current assets of the company is decreasing
Better conversion of Sales Turnover into Net Profit ie Amtek had a sales turnover
of Rs.3999.7 Cr and profit of Rs.323.37 Cr while Banco had a sales turnover of
Rs.447.22 Cr and profit of Rs.66.41
Banco have a better Return on Capital Employed, Net Profit Margin, Investment
Turnover and Return on Net Worth