Federal-Mogul Goetze
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Federal-Mogul Goetze (India) Limited's recent management commentary highlights a strategic pivot towards advanced engine solutions, particularly in Hydrogen ICE and high-performance technologies, which is expected to enhance revenue growth and competitive positioning. The company's focus on operational excellence through automation and energy conservation aligns with Vista's forecast of stable revenue growth and margins, supported by a conservatively financed balance sheet. However, the company faces challenges, including high energy intensity and the need for skilled labor, which could impact margins and operational efficiency. The auto ancillaries sector is experiencing a sunrise phase, driven by electric vehicle adoption and government incentives, yet headwinds such as rising commodity prices and supply chain disruptions remain pertinent. Over the next 12-24 months, key opportunities include expanding the sintered material portfolio and modernizing manufacturing facilities, while watchpoints include managing operational costs and navigating regulatory requirements. Vista's outlook reflects a cautious stance, with a target price indicating a potential downside, emphasizing the need for careful monitoring of both internal and external factors affecting performance
Why We Like This Stock
- Management's pivot towards advanced engine solutions is expected to drive revenue growth and enhance competitive positioning
- Operational excellence initiatives, including automation and energy conservation, align with Vista's stable margin outlook
- The auto ancillaries sector's growth potential, particularly in electric vehicles, presents significant opportunities for Federal-Mogul
Things To Watch Out For
- High energy intensity and the need for specialized labor pose risks to operational efficiency and margins
- Rising commodity prices and ongoing supply chain issues could impact profitability and demand stability
- Regulatory requirements for capital-intensive upgrades may strain financial resources and operational focus
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,696 | 1,800 | 1,958 | 2,018 | 2,126 |
| Profit Before Tax (Cr.) | 185 | 242 | 259 | 259 | 275 |
| PBT Margin | 10.9% | 13.4% | 13.2% | 12.8% | 12.9% |
| Net Profit (Cr.) | 134 | 170 | 181 | 182 | 186 |
| Earnings Per Share | 23.0 | 29.2 | 31.3 | 31.4 | 33.4 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Federal-Mogul Goetze (India) Limited manufactures, supply, and distributes automotive components for two/three/four-wheeler automobiles in India and internationally. It provides pistons, piston rings, and wet and dry cylinder liners for a range of applications, including bi-wheelers, passenger cars, SUVs, tractors, light and heavy commercial vehicles, locomotive engines, stationary engines, and high output locomotive diesel engines. The company also offers sintered metal products for various engines and automotive applications, such as valve trains, transmission, lubrication pumps, and other engine/structural parts. It exports its products. The company was formerly known as Goetze (India) Limited and changed its name to Federal-Mogul Goetze (India) Limited in 2006. The company was incorporated in 1954 and is based in Gurugram, India. Federal-Mogul Goetze (India) Limited is a subsidiary of Federal Mogul Holding Limited.