Ahmednagar Forgings Limited

Stock Opportunities
1

Hi Friends

My growth screeners have thrown an interesting output. I would like to have your view on theAhmednagar Forgings Limited. I have not taken any position yet. Still studying.

http://www.screener.in/company/?q=513335

Number Highlights:

Pros:

Net Sales (Rs. Cr.) 191 358 592 656 501 634 935 1,214 1,718 2,397
Y-o-Y Gr. Rt. - 87.6% 65.5% 10.8% -23.7% 26.6% 47.5% 29.8% 41.6% 39.5%
Return on Equity (%) 31.63 24.36 23.03 17.56 8.06 12.04 18.92 17.71 20.25 18.53
Operating Profit Margin (%) 12.33 15.52 19.48 18.88 18.65 22.89 26.37 24.31 24.23 24.97











P/BV 0.79
PE 4.59

Neutral:

Jun'05 Jun'06 Jun'07 Jun'08 Jun'09 Jun'10 Jun'11 Jun'12 Sep'13 Sep'14
Return on Capital Employed 21.63% 17.43% 18.52% 15.58% 8.49% 9.54% 12.85% 13.17% 10.9% 9.78%

Net Profit Margin (%) 10.84 11.34 11.14 9.93 7.13 9.33 11.57 9.92 10.05 7.97

Cons:

Debt to Equity 0.84 0.44 0.39 0.3 0.64 1.03 0.82 0.91 2.35 2.34

cheers

Puneet

2

Debt is too high along with corporate government issue of promoters buying/siphoning off to Amtek groups other company

3

HiRokrdude

Thanks for your inputs.

Cheers

Puneet

4

One can look into a company in a similar space - Ramakrishna Forgings . While the stock has moved up quite a bit , but I feel it still has some juice left in it.