“Autoline Industries (AIL)’s AGM for FY 2011 has been deferred and would be held anytime upto 31 December 2011 as AIL is in the process of Amalgamation of Nirmiti Auto components Private Ltd and
Western Pressing Ltd with AIL. AIL expects to generate Consolidated topline in the range of Rs 8,500 mn to Rs 9,000 mn during FY 2012. The slowdown in the Auto sector owing to higher interest rates has affected AIL’s business to some extent in the Passenger Vehicle (PV) segment. However AIL is witnessing strong demand in the Commercial Vehicle (CV) segment. During June 2011, AIL received “Mega Project” status for its Chakan Project at Nanekarwadi, Chakan. AIL has not received any benefits yet and we have therefore not factored in any savings due to this. AIL is currently facing pressure from OEM’s to reduce prices. AIL’s expects to generate EBITDA margin of slightly above 10.0% during FY12. AIL owns 51.0% stake in 100 acre land in Chakan. The Company is in talks to sell this Land and no substantial development has taken place on this front.”
“AIL recently received new business from M&M ltd which would contribute to the topline every year from FY13 onwards. AIL would start supplying to Tata Motors Dharwad plant in coming quarters which would contribute to topline from FY13 onwards. For FY12, it is unlikely to contribute any significant amount to the topline of AIL. AIL is expected to generate new business from Volkswagen India by Q3 FY12 onwards. It would also generate business from Ashok Leyland Ltd from FY13.”
“AIL is mid-sized Engineering company manufacturing more than 800 products in Sheet Metal Components and Tubular structure space. AIL is also involved into Value added services that include conceptualizing, styling, design engineering and creating prototypes of Auto Components. AIL is currently facing pressure due to slowdown in Auto Sector primarily in the PV space. However it is constantly adding newer customers which would allow to it to reduce dependence on few customers and thereby maintain growth. AIL’s Net Sales tend to be lower during the start of the year and tend to pick up during the later part of the year. We have maintained our topline and bottomline estimates for FY12 and FY13. At CMP of Rs 107, the stock discounts the FY12E & FY13E EPS of Rs 31.0 & Rs 39.9 by 3.4x & 2.7x respectively. We maintain our BUY rating on the stock at current levels for target price of ` 208 (5.2x FY13E EPS),” says Sushil Finance research report.
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Western Pressing Ltd with AIL. AIL expects to generate Consolidated topline in the range of Rs 8,500 mn to Rs 9,000 mn during FY 2012. The slowdown in the Auto sector owing to higher interest rates has affected AIL’s business to some extent in the Passenger Vehicle (PV) segment. However AIL is witnessing strong demand in the Commercial Vehicle (CV) segment. During June 2011, AIL received “Mega Project” status for its Chakan Project at Nanekarwadi, Chakan. AIL has not received any benefits yet and we have therefore not factored in any savings due to this. AIL is currently facing pressure from OEM’s to reduce prices. AIL’s expects to generate EBITDA margin of slightly above 10.0% during FY12. AIL owns 51.0% stake in 100 acre land in Chakan. The Company is in talks to sell this Land and no substantial development has taken place on this front.”
“AIL recently received new business from M&M ltd which would contribute to the topline every year from FY13 onwards. AIL would start supplying to Tata Motors Dharwad plant in coming quarters which would contribute to topline from FY13 onwards. For FY12, it is unlikely to contribute any significant amount to the topline of AIL. AIL is expected to generate new business from Volkswagen India by Q3 FY12 onwards. It would also generate business from Ashok Leyland Ltd from FY13.”
“AIL is mid-sized Engineering company manufacturing more than 800 products in Sheet Metal Components and Tubular structure space. AIL is also involved into Value added services that include conceptualizing, styling, design engineering and creating prototypes of Auto Components. AIL is currently facing pressure due to slowdown in Auto Sector primarily in the PV space. However it is constantly adding newer customers which would allow to it to reduce dependence on few customers and thereby maintain growth. AIL’s Net Sales tend to be lower during the start of the year and tend to pick up during the later part of the year. We have maintained our topline and bottomline estimates for FY12 and FY13. At CMP of Rs 107, the stock discounts the FY12E & FY13E EPS of Rs 31.0 & Rs 39.9 by 3.4x & 2.7x respectively. We maintain our BUY rating on the stock at current levels for target price of ` 208 (5.2x FY13E EPS),” says Sushil Finance research report.
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