India Motor Parts
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
India Motor Parts & Accessories Limited (IMPAL) is navigating a stable growth trajectory, bolstered by management's focus on expanding its presence in smaller cities and rural markets. Recent commentary from management highlights a resilient aftermarket segment, supported by the broader Indian economic growth. The implementation of a new ERP system is expected to enhance operational efficiency, which aligns with Vista's forecast of improving margins and stable revenue growth. Despite the competitive pressures and supply chain dependencies inherent in the auto ancillary sector, the company's strong relationships with OEMs position it favorably. Vista's financial outlook anticipates a modest revenue growth consistent with historical performance, alongside an expected margin expansion to approximately 9.77%. The automotive ancillary industry is benefiting from a shift towards electric vehicles and government incentives, which could further enhance market dynamics. However, challenges such as rising commodity prices and geopolitical tensions may impact profitability. Over the next 12-24 months, key opportunities include leveraging the electric vehicle trend and expanding product offerings, while watchpoints include maintaining competitive positioning and managing supply chain risks
Why We Like This Stock
- Management's focus on expanding into smaller cities and rural markets enhances revenue potential
- The new ERP implementation is expected to improve operational efficiency and support margin expansion
- The automotive ancillary sector's shift towards electric vehicles presents significant growth opportunities
Things To Watch Out For
- Competitive pressures and supply chain dependencies pose risks to market share and profitability
- Rising commodity prices may impact margins despite improving pricing power
- Geopolitical tensions could create uncertainties affecting operational stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 741 | 789 | 837 | 893 | 953 |
| Profit Before Tax (Cr.) | 79 | 95 | 114 | 113 | 123 |
| PBT Margin | 10.7% | 12.0% | 1362.0% | 12.7% | 12.9% |
| Net Profit (Cr.) | 64 | 78 | 97 | 95 | 103 |
| Earnings Per Share | 51.0 | 62.7 | 77.7 | 76.2 | 82.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
India Motor Parts & Accessories Limited sells and distributes automobile spare parts and accessories in India. The company offers oil seals, gaskets, hydraulic brake parts and brake fluid, clutch cover assembly and clutch driven plate, car fuel system components, fuel injection parts, crown wheel pinion, differential and transmission gears, auto cables, fan belts, radiators, shock absorbers, struts, engine bearings, filters, and PCVL rings, AC delco products, brake drums, head and tail lamps, axles shafts, and auto electrical components. It also provides clutch plates and cover assemblies, instrument clusters and dashboard instruments, rod ends and steering joints, valves and valve guides, automotive bearings, brake and clutch facings, air brake components, high tensile fasteners, socket head cap screws, powders, and metallurgy products, water and oil pumps, automotive rubber components, tyres and tubes, turbos chargers, spokes, nipples and kits, UJ crosses, wheel rims, prop shafts and components, and steering assembly and components. The company was incorporated in 1954 and is based in Chennai, India.