BHARAT SEATS LTD(523229) - VALUE FOR MONEY

Today I am expressing my view on one Auto part manufacturing stock.

BHARAT SEATS LTD(523229)

Bharat Seats Ltd is a joint Venture of Suzuki Motor Corporation, Japan, Maruti Suzuki India Ltd and the Relans for the manufacture of complete seating systems and interior components for the automotive and surface transport. 

Incorporated in 1986, Bharat Seats has been a part of the growing automobile scene in the country and today it occupies an eminent position in its field a s it designs and manufactures products which when viewed from the customer’s perspective, provides superior value. The activities of the Company are aimed at Consistent growth, Consistent and steady earnings and Return on stakeholders investments.

Bharat Seats has installed the latest state of the art equipments for the complete range of seating systems such as a High Pressure Polyurethane machines for foam moulding.

State of the art

• PU Moulding lines for making PU Pads
• Conveyerised assembly lines 
• Carpet lamination
• Moulding and punching equipments.
• Pipe End Swaging Machine
• CNC Tube Bending Machine
• Tube End Fine Boring Machine
• Mechanical Press

MAJOR CUSTOMERS INCLUDES

PRODUCTS

Four wheeler seats

Railway seats

Two wheeler seats

Research and Development

Company are backed by a dedicated team of Design and Development engineers with vast experience in the automotive industry. We take up projects from the concept stage through modeling, designing prototyping to testing and validation for the final product. 

Simulation of load and stress conditions at the design stage itself helps us to offer several alternatives to the customer to optimize on the material selection. We use the latest relevant software for designing purposes in our R&D.

 R&D centre is approved by the Ministry of Science and Technology Department of Scientific and Industrial Research.

The proto shop plays a vital role in the development of new models and parts. The prototype shop has the facilities of making in – house, Solid Models, Proto parts, Dies and Moulds and Fixtures and gauges. The State of the Art Vertical Machining centre with 2 meter bed can take up for machining the bigger moulds and fixtures in one setting.

QUALITY AND TESTING

Modern and top of the line – inhouse testing facilities have enhanced our capabilities for quick development and validation of new models and parts. We have testing facilities for Seat Assemblies, Seat Frame & Structures, P.U. Pads andAutomotive floor and luggage carpets.

Testing systems is programmed to test as per all international standards like ECE-R-17,FMVSS, JASO, ADR

Company shares are trading in BSE. Promoter holding in the company is 74.38%.

Company posted 252 Cr top line with over 1% operating margin & Net profit is 4.301Cr in the March qtr.

Stock is trading low PE of 22 against its peers.

Stock is trading at Rs 88.

As the company manufacturing Automobile seats and accessories, and the Automobile industry is in the growth track will be added advantages to this company. Company manufactures seats and accessories to Indian railways as more and more investments are happening to railways will boost the growth of the company.

This stock Will be a wealth creator for investors in near future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”