ACE, my experience in the market is one year and have been learning daily and

learned most from your analysis onlyI come across one stock last week which
attracted me for which I would like to ask your opinion...my understanding is
detailed below and It is purely valuation basis..
Company Name: OMAX AUTO
The Company into three Segments Auto, Railway and Homeware as a
diversification.. Since other two verticals of Railway and Homewares are new and
their revenues are very less compare to over all revenue.. So major revenues are
coming from their Auto devision only.
The Company claims 20% market share for 2 wheeler frame in overall 2
wheeler industry in India
40 % of market share for Piston Rods of Shock Absorbers in overall
Passenger Car Industry in India. The company has almost Ten plants across
India. Mostly for Auto plants.. Seven plants in Gurgaon, Dharuhara (Haryana), One
plant each Lucknow and Bangalore and Uttarakhand
Though OMAX customer list cover all major Two wheeler Brand Companies. Their
Major order flow customer is Hero Motors. So strategically OMAX Auto most
plants are situated near to Hero Motor Company plants at Gurgaon,
Dharuhera. (8 Plants)
Being Auto Component segment is low operating margin business and has less
bargaining power due to tough competition in the market. OMAX OPM is not so high
and also derailed from 9 % from 2005 to 4.95% 2014.
Steel, Aluminum and Cast iron are the major raw materials used in manufacturing of
auto components, since the raw materials cost has down drastically, it will enhance
the operating profit for the coming time.
Debt is been reduced continuously yearly basis from 265 cr (2010) to 115 cr 2014.
Market Capitaital around 100 Cr against Annual Sale of 1000 Cr, Yes Hardly
10% of the total Sales which is rare in Auto sector, where Peers are valued huge.
Promoter holding is good around 55%, No Equity Dilution till date
Continuous dividend for last nine years except 2014 where it was in loss.
Current price Rs. 50 is almost half of the book value.
My Main attraction to this company is, It is continuously showing CFO averagely 50
crore yearly basis since 2005.

The stock life time High is around Rs.171 during 2006... There after it is been
consolidation stage Rs.35 Rs.50 since 2008, the major resistance is Rs.58, Once it
is break out ... It may go to the next level what deserves.
Current price around Rs.50 listed in both exchange.
Though P/E looks high because of last year earnings... the company shown
sustained growth last two quarter giving an indication. Forward Earnings expecting
good which will bring P/E to the reasonable level.
Overall, it is ex these are the below positive trigger may assist to this company for
coming years earnings visibility.
i.
ii.
iii.

Major Raw materials of Steel, Aluminium price drastic downtrend

RBI Interest rate cut may directly help auto vehicles volumes
Economy pick up due to higher GDB projection for the years ahead..

In the last two months. Two Non-Executive Directors and One Whole time
Directors have been resigned.. Though Non-Executive Director does not have
much impact on the operation and even their remuneration was very less. Only
need to access the impact of whole time director Sent a mail to No response
sofar trying to reach CS...
As said, the content is not finished thoroughly, still lot of questions needs to be
clarified through CS and explored Management Quality..
The Interest was started to me by seeing the CFO 50 Crore yearly with the market
capitalizations of around 100 Cr which.
ACE, my draft has other charts of raw materials price trend, Two Wheeler Sales
Volume trend and other financial charts which not able to put in the comments.. I
am forwarding this draft to have your opinion, if I get the positive reply, I will dig
further and may share the complete report to your mail id otherwise I will scrap it..
Disc No Holding... Datas have been taken from Screener and Annual Report.