Automobile Corporation of Goa - Tata Motors Subsidiery

Automobile Corporation of Goa  (Cmp 740)

Automobile Corporation of Goa Ltd. (ACGL), the first major engineering unit to be set up in Goa, was jointly promoted in 1980 by Tata Motors Ltd (formerly known as Tata Engineering & Locomotive Co. Ltd.), the largest automobile manufacturer in the country and EDC Ltd (formerly known as Economic Development Corporation of Goa, Daman & Diu Ltd.).

The company manufactures Sheet metal components, assemblies and bus coaches at its factories situated at villages Honda & Bhuimpal, Goa.

The company is in operation since 1982 and is a major supplier of pressings and assemblies to Tata Motors' Pune factory. To meet "Just In Time" supplies to the customer, the company has set up a press shop at Jejuri, Pune. The Sheet Metal Division at its three units has high tonnage presses with an output of more than 17,620 tonnes that have ensured complete customer satisfaction.

In 1987, the company entered into a Technical Collaboration Agreement with Fuji Heavy Industries Ltd., Japan, makers of Subaru car for various models of chassis mounted bus bodies and set up a full fledged Bus Body Building Division. The company had a further agreement with FHI Ltd. to build Monocoque buses in 1995.

Products :- 

Fundamentals of Company :- 

1. Company is virtually debt free.
2. Company has been maintaining a healthy dividend payout of 27.17%
3. Company's Last 3 years's ROE is around 10%
4. Market cap  487 Cr.
5. Book value 306, strong candidate of Bonus
6. Face value 10
7. Promoters's Holding 53.50%, wherein Tata motors carrying 46.44%.
8. No pledged Share.

Financial Result :- 

Company declares healthy result from last three years..

Sales, PAT is also increasing YOY...

Technical Analysis :- 

1. Stock is trading above all moving averages
2. RSI is also positive
3. chart shows uptrend
4. Stock has brocken resistance of 740.
5. Ascending triangle breakout...

My view :- 

As per my view stock will up from current level of 740.

AGM is planned On 27/07/2017. Might be some big announcement from the Board of Directors.

Keep investing in AUTOMOBILE CORP OF GOA FOR TARGET OF 800,850 OR MORE in 5-6 months.

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