Morgan Stanley Overweight on Amtek Auto

Morgan Stanley in a report continues to be OVERWEIGHT on Amtek Auto.

F3Q08 numbers in line with estimates. Consolidated revenues came in at Rs13.2bn, 1.6% above our Rs13.0bn estimate while EBITDA came in at Rs2.3bn, 12.2% below our Rs2.6bn estimate. This excludes one-time Rs297.1m profit on sale of shares booked by Amtek Siccardi (one of the subsidiaries) in F3Q08. Adjusted EBITDA margin came in at 17.2%, 270 bps below 19.9% estimate and 280 bps below last year’s 20%, primarily driven by higher raw material costs.

Consolidated reported PAT came in at Rs1.2bn exactly in line with our estimates and 14% above last year’s Rs1.0bn. Standalone revenues and margins came in at Rs3.3bn and 26.2%, below Rs3.4bn and 28.2% estimates, respectively.

Morgan Stanley expects Amtek Auto to report an EPS of Rs 30.18 for FY08 ending in June and Rs 35.26 for FY09. Continues to be overweight with a target price of Rs 500.