Q4Fy24 result has been unexciting, while sales growth has been 16% but it was below expectation of 19-20%. Mgmt has been conservative in giving guidance, giving a sustainable guidance of 15-16% however, they remain optimistic of achieving 19-20% growth in next 2 years. Mgmt has been able to improve its EBITDA margin and is quite optimistic of achieving 13.5% in next 2 years.
Have launched disc brake and guiding for 120Cr rev in Fy25 ramping up to 300Cr by Fy27. E-Cockpit is ready and is being showcased to potential customer. Head-up display is also ready for customer inspection. BMS is seeing slowdown probably due to slowdown in EV sales in US.
Big setback is from export side, earlier targeting for 20% rev from exports, but looking at the current situation in US & EU revised it to 10%.
I am of the view that, mgmt is on track. There is temporary slowdown in EV adoption plus US & EU market is not looking good currently. Going forward I believe; the domestic auto sales will decide the momentum in this stock. At current valuation of 450rs, I believe it is fairly valued & there is no MoS.
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