Federal-Mogul Goetze
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Federal-Mogul Goetze's recent performance reflects a stable yet moderating growth trajectory, as indicated by management's commentary and the broader industry context. The company's revenue growth is slowing compared to historical performance, which is a critical factor influencing Vista's forecast. Despite this, profit margins are expected to remain stable, supported by a conservatively financed balance sheet with low leverage. This stability is crucial for maintaining financial health in a competitive and fragmented market. The automotive ancillary sector is experiencing a shift towards electric vehicle adoption, which presents both opportunities and challenges. While the industry is in a sunrise phase with improving pricing power, Federal-Mogul Goetze's market share remains modest at 0.56%, necessitating strategic capital allocation to enhance its competitive position. Vista's financial outlook anticipates a fair valuation aligned with intrinsic value, with a target price reflecting limited upside potential. Over the next 12-24 months, the company must navigate the dual pressures of rising commodity prices and the need for innovation in product offerings to capitalize on the electric vehicle trend. Overall, while the macro environment in India is supportive, Federal-Mogul Goetze's ability to adapt to industry changes will be pivotal for its long-term growth prospects
Why We Like This Stock
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Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,696 | 1,800 | 1,958 | 2,007 | 2,004 |
| Profit Before Tax (Cr.) | 185 | 242 | 259 | 261 | 262 |
| PBT Margin | 10.9% | 13.4% | 1322.8% | 13.0% | 13.1% |
| Net Profit (Cr.) | 134 | 170 | 181 | 183 | 177 |
| Earnings Per Share | 23.0 | 29.2 | 31.3 | 31.7 | 31.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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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.