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ICICI Securities Report
Dynamatic Technologies Ltd.'s Q4 FY24 performance undershot our estimates mainly due to hydraulics division. Key points:
Ebitda of Rs 429 million (down 13%) was impacted by production pause in UK (hydraulics division);
aerospace division saw both earnings and margin growth;
net debt stood at Rs 3.96 billion (down 19% QoQ), following utilisation of proceeds from the sale of land in Coimbatore for debt reduction; and
capex stood at Rs 749 million in FY24.
Going ahead, we believe both aerospace and hydraulics divisions are likely to drive earnings growth as production is back on track. Besides, the recently won orders in aerospace may also drive margins.
We maintain Buy on Dynamatic Technologies with an unchanged target price of Rs 10,250 based on 45 times FY26E earnings per share.
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