Company Watch- GKN Invel Transmissions Ltd
Company Website
gkninvel.com
Shareholders
GKN owns majority shares in GKN Invel Transmissions Ltd., and the current shareholding pattern is as follows:
GKN (http://www.gknplc.com/) 51%
IFC Washington 14%
Indian Shareholders (widely held) 35%
(GKN Invel Transmission Ltd. Is quoted on all the leading Stock Exchanges in India.)
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GKN Invel Transmissions
GKN Invel should be one of the major beneficiaries from the auto ancillary industry. The company makes transmissions systems for automobiles. Uni-Cardan, Germany, a part of the GKN group, holds a 51 per cent stake in the company while IFC, Washington holds around 14 per cent.
For the year ended December 1998, the company had achieved sales of Rs 101.19 crore and a net profit of Rs 0.18 crore. In the first six months of the current year its has already achieved sales of Rs 53.02 crore and a net profit of Rs 0.66 crore. Analysts, expect the company to end the year with a net profit of Rs 5 crore.
GKN holds a near-monopoly in the Indian market. Its only competitor, Delphi, largely services only General Motors (GM) in India. However, GKN has made inroads into Delphi's market. It will be supplying components to GM's Corsa model. Initially it will be supplying about 2,000 units which will go up to 5,000 units by 2002.
Even Maruti sources almost 80 per cent of its requirements from GKN. In addition to this, GKN counts Hyundai, the Indica and most other international car majors in India in its client list. The company is also focusing on the export market which is a good thing. At Rs 63 the scrip is a buy.
(Courtesy:The Small Investor [bs]) |
