Techno-Funda Pick Igarashi Motors India

Igarashi Motors is an auto sector company engaged in manufacturing  Micro motors and its accessories. It produces small DC brush motor, geared motor and motor parts. It is a leading manufacturer of micro electric motors in India and derives over 95% of its revenues from exports equally distributed among the USA, Europe and Asia. Despite slow down in US and Europe the company has managed to report strong revenue. With the gradual recovery in Europe and US, the company is expected to increase its revenue.

The promotors have increased their stake to 74.5 % which indicates that promotors are upbeat on solid performance in the coming quaters and years. The company has also reduced debts and has managed to increase the cash flow to 36 crore in March 14 from 2.7 Crore in March 13. The sales has increased from 290 crore to 361 YOY. Annual EPS has increased to 15.16 from 10.46 of previous year. The stock is currently available at a P/E ratio of 24 while the industry P/E is 29.5

igarishi-weekly chart

On the weekly charts the stock is moving up with very good volume in 3rd wave. It has crossed the 1.61 % fibonacci extention levels. The 2.61 time fibonacci levels are suggesting targets of 404 in the stock.

igarashi daily chart

On the daily charts the stock is trading above the ascending triangle resistence level which is suggesting immediate targets of 345. The stock has also breached the uppper bollinger band.

Disclaimer: We have personal interest in this stock and was recommended to clients at 285 levels.

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