Amtek Auto surges over 19 pc; Nomura starts with 'buy' rating

Amtek Auto surges as much as 19.3 percent to a six-year high of 264.90 rupees after Nomura initiates coverage on the stock with a "buy" rating and a target price of 416 rupees, citing it as a leveraged play on a turnaround in the domestic automotive industry.

Amtek has been very aggressive with capex and acquisitions in the past which has not paid as a slowdown in the key markets of India and Europe led to a build-up of significant debt, the investment bank says in a report on Friday.

Nomura adds it believes the company's management is now focused on improving return ratios and generating free cash flows, which should be taken positively by the market.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture