AKAR TOOLS LTD (530621) - STOCK OF THE WEEK

Dear Investor friends,  today I am discussing  one industrial/ Auto goods segment stock.

AKAR TOOLS LTD (530621)

Akar Tools Ltd, an ISO/TS 16949:2009 certified company is the forward integrated enterprises of R.L. Group of Industries. Company is an India-based company, which is engaged in the manufacturing of automotive components, such as hand tools and commercial automotive forgings, and leaf springs business. 

Company’s plant is situated in Waluj near Aurangabad, Maharashtra, which is one of the major automotive clusters in India with good transport connectivity.

Since, Start of production in 1991, Akar Tools Ltd manufacturer's hi- quality precision engineered forging components, company became a public limited company in 1994.

PRODUCTS

Company's products are falling mainly in four segments.

     1.    Hand Tools

     2.    Tool Kits

     3.    Forging

     4.    Leaf springs

     1.    Hand Tools

Company’s products are branded under the name of “AKAR”. In this segment number of different products are being manufactured mainly are

Spanner / Wrenches

Automotive / Working Tools

Plumbing Tools

Electrical and Electronics Tools

Striking Tools

Lubricating Tools

Tool Apron

Hand Truck

     2.    Tool Kits

These are widely used in automotive industries. Akar manufactures both Automotive and Non-Automotive tool kits.

In this segment Akar products are being used by for Two wheeler, Three wheeler, Four wheeler and Commercial vehicle manufacturers.

     3.    Forging

Here in this category products are for Automotive shafts, Gear Blanks, Steering levers, Pulleys etc. These products are also for Automotive and Non-automotive uses.

     4.    Leaf Springs

Akar manufactures various types of Multi Leaf spring such as Bogie Type, Progressive Type, Single stage, two stages. These leaf springs are widely used for Heavy Duty trucks Special Application Vehicles SUVs & MUVs, LCV & HCVS in Trucks and Buses.

Akar is Equipped with an imported parabolic machine with manufacturing capability from 6mm to 60 mm thickness rolling capacity with minimum Parabolic thickness tolerance. Various type of leaf springs are manufactured and supplied Worldwide.

Akar innovative design and manufacturing capability has resulted in efficient air ride main support members that are both durable and high performing for a variety of suspension designs.

Clients

AKAR Tools is having strong customer base from renowned Auto industries. Some of them are as below.

Company website: Clickhere 

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 73.06%

Company posted 189.35 Cr top line in Last Financial Year.

Net profit is 2.62 Cr bottom-line in the Last Financial year

Stock is trading low PE as compared to industry PE & major peers.

EPS 4.86

Regular dividend paying company

Stock is trading at Rs 97.

Company posted good set of number YOY basis and grown 42 % on bottom-line numbers as compared to previous year numbers. Company products are mainly for Auto industries, as this sector will grow because of lower interest rates this will be a huge positive for the stock. Company is having strong customer base in the Auto industry leaders. Considering above this stock will give good returns to the 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”