The Hindu Business Line : Raunaq Auto: Steady accumulation

Raunaq Automotive is being considered as a counter for slow but steady accumulation. According to market sources, a section of domestic investors are picking up the auto component stock in view of sectoral growth and its relatively lower valuation.

The valuation, which has begun to inch forward after its turnaround, is around half its current annual sales figure, observers point out. The company had posted a net profit of Rs 2.56 crore in 2005-06 against a loss of Rs 3.24 crore in 2004-05.

"The company is understood to have been designated as one of the auto component outsourcing points by certain overseas and domestic vehicle manufacturers," said an industry insider. The stock has gained around 27 per cent in the last one month. Its average daily traded quantity on the BSE also showed improvement in the past fortnight at 17,756 shares. The stock closed on Monday at Rs 29.10. On October 19, it had created 52-week high at Rs 32.50.

The market expects an EPS between Rs 9 and Rs 11 at the end of this fiscal.

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