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Saturday, March 14, 2015

Austin Engineering : Stock Update




About Company:

Austin Engineering Company Limited (AEC) is an ISO 9001:2008 and ISO/TS 16949:2009 certified manufacturer of widest range of ball & roller bearings and its components in India without any foreign collaboration, located near Junagadh in Gujarat State.
Ever since inception in 1973, company has continuously upgraded skills, production capacities, infrastructure and services. From an outfit of 10 workers, that manufactured cylindrical roller bearings and deep groove ball bearings with an outside diameter of up to 50 mm, today it is a global force in the bearings industry. Manufactures almost the entire range of anti-friction bearings up to an outside diameter of 1800 mm. Company exports  bearings to developed countries like the USA, UK, and European Union countries apart from local needs.
Financials: Company should deliver approx. turnover of 98-100 crores by year end 2014-15 and expected EPS should be around Rs10 on small equity base of 3.5 crores. Estimated Top line growth is 15% over previous year and  It is almost debt free company.

Future Business Potential: With improvement in economy and thrust on infrastructure bearing industry should see increase in domestic demand and company can easily deliver increased EPS in range of 14-15 in next 2 years. Company has been paying dividend for last 5 years
Share was recommended in the past at current levels and stock went up but in recent correction it has come down at current attractive levels.
 Long term investor may buy at CMP of 81-83 could easily see 150 levels in longer term

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