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Amtek Auto has shown sharp fall of 78 per cent in last one year. This could be because: The company has shown poor performance from June quarter ending 2015, The stock was removed from the list of derivatives. There are market rumors that the company may be on the verge of a default on its huge debt payment. Amtek Auto Share price has touched a 52 Week high of Rs. 176.05 on 03- Aug-15 and 52 weeks low of Rs. 25.20 on 04-Sep-15. Genesis: Amtek Auto Ltd came into being in the year 1988 with its headquartered in New Delhi. Amtek is one of the large integrated automotive component manufacturers in India. The company has a strong global presence. Amtek has best-in-the-world facilities in Europe, North America, and India. The company has considerable competence in forging, gravity and high-pressure aluminum die casting, gray and ductile iron casting and machining and sub-assembly. The products and services of the company include connecting rods assembly, piston assembly, case component assemblies and forging. Amtek Auto also manufactures parts for non-auto sectors such as the specialty vehicles, aerospace, railways, agricultural and heavy earth moving equipment. The Company works in segments which include Automotive Components. The company’s Forging Division has manufacturing facilities in Maharashtra, Northern Capital Region (NCR), and Madhya Pradesh. Automotive Machining Divisions of Amtek has facilities in Rajasthan, Uttrakhand, Maharashtra, and Missouri. Financial update: Net Sales: During the quarter ended 31st March 2016, the company reported a decline of 46.65 percent of net sales on the Y-o-Y basis to Rs.651.02 cr as against Rs.954.68 cr during the equivalent quarter last year. Operating Performance: The operating performance of the company witnessed a loss of Rs. 26.69 cr on Y-o-Y basis while, a profit of Rs.133.31 cr was reported in the same quarter last year. This is primarily due to the decline in sales of the company by 46.65 percent. Net Loss: The company has reported a net loss of Rs.(-528.69) cr as on Q1 2016, compared to a net profit of Rs.129.82 cr during the corresponding quarter last year. FII: The FII’s have come down tp 13.17 per cent to 3.22 per cent which gives us the sign of alert for the stock. Interest Paid: During the Q1 2016, the interest paid by the company went up to Rs. 289.81 cr as against Rs.171.70 cr during the same quarter last year. Increasing interests show that the company has increased its debt. However, the proper stationing of debt is as significant as the rise in sales and profit. Otherwise, growing interest will eat the profitability of a company. Amtek Auto share price has been persistently trading at a very low range since September 2015 and has not shown any sign of recovery. Therefore, unless the fundamentals of the company recovers and Amtek Auto share price shows strength, it will be wise to wait before investing in the Company.
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