Amtek: Focus on overseas buys

ANALYSTS' CORNER

Angel Broking recommends a "buy" on Amtek India. The report states the company's recent overseas acquisitions will help it emerge as a global player.

It recently acquired the Sigmacast Group of UK, one of the largest global suppliers of turbocharer housings. With this acquisition, the company expects to ramp up its export revenue and become a global tier 1 auto supplier.

It is also expanding capacity of its foundry and components divisions to meet the increasing requirements of its existing domestic customers as well as the outsourcing requirements of its subsidiaries.

An automotive components manufacturer, Amtek India specialises in the manufacture of a variety of iron and aluminum castings.

It plans to grow through acquisitions, expansion and upgradation of capacities to build world class manufacturing facilities. It is an original equipment supplier to auto players across segments.

Everest Kanto: Global ambitions

Brics PCG Research recommends a "hold" on Everest Kanto. The report states the company will invest $ eight million to set up a wholly-owned subsidiary in Dubai for manufacturing high-pressure gas cylinders.

The company already has a branch functioning in Dubai with a staff of 150 personnel and has plans to double this headcount shortly. The new 20,000 square meter plant is expected to begin operations in August this year at the Jebel Ali Free Zone, with a capacity of producing 96,000 cylinders.

The new subsidiary will look after operations in the Middle East and the CIS, where company sales touched 90,000 units last year. The CIS market is growing rapidly with two lakh CNG-based vehicles already plying there.

Its major markets in the region are Ukraine, Russia, Armenia and Kazakhstan. It is looking to further expand its overseas footprint and has lined up additional investments for this purpose.

Infotech Enterprises: Engg play

Angel Broking recommends a "buy" on Infotech Enterprises. The company is a specialist engineering services (ES) outsourcing player. The report states that ES is expected to be at the forefront of the next wave of outsourcing.

As per IDC estimates, the global market for ES outsourcing was worth $ 69.8 billion in 2001 and is estimated to grow at a CAGR of 12.2 per cent to touch $ 123.9 billion by 2006 presenting a huge market potential for outsourcing such services.

The company is a specialist player having a significant presence in the automotive, industrial machinery and utilities segments while it enjoys a leadership position among its Indian peers in the aerospace and geographic information services segments.