Fundamental Analysis

IGARASHI MOTORS INDIA LTD.

Ticker : 517380
BUY: Rs.252.50
Target: Rs.288



Igarashi Motors India Limited is engaged in the business of auto components for automobiles, offering electric micro motors and motor components. On the standalone financial front, the net sales for Q2FY20 came in at Rs. 138.20 crores, which is a decrease of nearly 20 per cent compared to net sales of Rs. 172.73 crores for Q2FY19. The profit before depreciation, interest, and tax for Q2FY20 is reported to be Rs. 23.96 crores, which is a decrease of 34.81 per cent from Rs. 36.76 crores reported in Q2FY19. For Q2FY20, the net profit of Igarashi Motors India dropped by 59.14 per cent due to shortfall in demand to Rs. 8.08 crores from Rs. 19.77 crores gained in Q2FY19. As the auto industry looks towards revival, an increase in Chinese automotive volumes will lead to significant growth in the company. Hence, we recommend a BUY.