Yuken India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Yuken India's management has expressed cautious optimism regarding the company's outlook, driven by the resilience of the Indian economy and government capital expenditure. The focus on operational efficiency, automation, and digitalization is expected to enhance competitive positioning and mitigate rising input costs. Vista's forecast anticipates accelerating revenue growth beyond historical trends, supported by stable profit margins and a fair valuation aligned with intrinsic value. However, potential headwinds such as global economic volatility and pricing pressures remain pertinent. The industrial equipment sector's sunrise growth state, characterized by improving pricing power, further bolsters Yuken's prospects. Over the next 12-24 months, key opportunities include leveraging technological advancements and capitalizing on stable demand, while watchpoints include navigating supply chain disruptions and regulatory changes that could impact profitability
Why We Like This Stock
- Management's focus on operational efficiency and digitalization is expected to enhance competitive positioning
- The industrial equipment sector's improving pricing power supports Yuken's revenue growth potential
- Stable profit margins and a fair valuation indicate a solid financial foundation for future expansion
Things To Watch Out For
- Global economic volatility poses risks to demand stability and pricing power
- Rising input costs and potential regulatory changes could impact profitability
- Supply chain disruptions may hinder production capabilities and operational efficiency
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 423 | 457 | 462 | 529 | 586 |
| Profit Before Tax (Cr.) | 27 | 32 | 22 | 27 | 29 |
| PBT Margin | 6.4% | 7.0% | 4.8% | 5.0% | 5.0% |
| Net Profit (Cr.) | 20 | 29 | 17 | 21 | 23 |
| Earnings Per Share | 14.8 | 21.4 | 12.7 | 15.4 | 16.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Yuken India Limited, together with its subsidiaries, engages in the manufacture and sale of oil hydraulic equipment in India and internationally. The company offers pumps, such as piston, vane, and gear pumps; chip compacting machines; customized and hydraulic cylinders; accumulators; and hydraulic and compact power units; flanges, accessories, and ASR and ASE pumps; and pressure, flow, directional, and modular controls, as well as logic, proportional, servo, and cartridge valves. It also provides directional control, throttle check valve, variable displacement vane pumps, solenoid operated directional valves with monitoring switch, cartridge check valves, DSMG 01 valve, HPV43 double vane pump, diaphragm accumulators, HMV1 EI sheet, and compact power unit, as well as training services. In addition, the company offers precision ferrous castings, solenoids, precision ground spools, and hydraulic accessories, as well as tooling for the foundry. It serves defence, construction, steel, capital goods, power, machine tools, agriculture, and other infrastructure sectors. The company was incorporated in 1976 and is headquartered in Bengaluru, India.