Cluster: Apple Green
Recommendation: Buy
Price target: Rs178
Current market price: Rs128
(O)MAXimum returns
- Omax Auto is a leading manufacturer of sheet metal, machined and tubular components, and precision components. The company supplies its products to auto majors like Hero Honda Motors, Maruti Udyog, TVS Motor Company, Eicher Motors etc as their chief vendor.
- Omax has strategically re-structured its business model by diversifying its both domestic client base and product portfolio as well as by focusing on exports.
- The company's globally competitive manufacturing facilities will maintain its leadership status in the domestic market, apart from positioning itself strongly in the export market.
- Omax is aggressively scaling up its capacity to capitalise on the domestic and global outsourcing opportunities in the country.
- The company's top line and bottom line are expected to grow at a compounded annual growth rate (CAGR) of 23.5% and 26.1% respectively during FY2005-07E.