IFSL - Autoline Industries Visit Note

Autoline Industries Ltd. (AIL), a Pune-based fast growing supplier of sheet
metal components and assemblies has been growing at CAGR 65% over the last
four years. We expect the company to grow at a CAGR of 55% in the next two
years, on the back of strong order book and export potential. Presently,
the stock quotes at a PER of 11.7x FYo8E. We believe that at the current
price, the stock is fairly valued.

Though the company has shown robust growth and the management is confident
of growing at the same pace going forward, we are slightly cautious on
growth prospects on back of rising interest rates & softening of demand in
the overall auto sector compared to what was seen in FY07. At CMP of Rs210
the stock is fairly valued as it is trading at 11.7x FY08E earning. At
present we do not have a rating on this stock.

Download here