Dalal Street Investment Journal - - QUERY BOARD -

Amtek Auto is an in­te­grated com­po­nent man­u­fac­turer with au­to­mo­tive oper­a­tions. On the fi­nan­cial front, Amtek Auto posted 23.25 per cent de­crease in its rev­enue to ₹424.64 crore in Q1FY18, as against rev­enue of ₹553.26 in Q1FY17. The com­pany posted an op­er­at­ing profit of ₹22.20 crore in Q1FY18, down by 4.45 per cent on a year-onyear ba­sis. Fur­ther, the com­pany re­ported a mas­sive net loss of ₹889.58 crore in the first quar­ter of FY18. The com­pany had posted a net loss of ₹319.68 crore in the first quar­ter of FY17 as well. On an an­nual ba­sis, the com­pany’s rev­enue in­creased by 29.55 per cent to ₹1,950 crore in FY17 from ₹6.65 crore in the pre­vi­ous fis­cal. The com­pany’s op­er­at­ing profit stood at

₹395.77 crore in FY17, up by 33.53 per cent from ₹296.40 crore in the pre­vi­ous fis­cal. In line with the quar­terly re­sults, the com­pany posted a mas­sive loss of ₹1,623.99 crore in FY17. The net loss of the com­pany stood at ₹738.36 for the fi­nan­cial year 2016. Amtek Auto is im­mensely debt-laden and, more­over, the Na­tional Com­pany Law Tri­bunal has ap­proved the de­ci­sion of beginning in­sol­vency pro­ceed­ings on the com­pany by a con­sor­tium of banks. The fu­ture of the com­pany looks un­cer­tain with a con­sis­tently damp­ened per­for­mance in the stock mar­ket as well. We rec­om­mend our in­vestors to Exit the stock.

I have 500 shares of Amtek Auto bought at ₹40, but now the price is down. Need your sug­ges­tion - Shikha Soni

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