NDR Auto Components Reports Strong Growth Amid Management Efficiency Challenges

Mar 19 2025 08:12 AM IST
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NDR Auto Components has recently adjusted its evaluation, reflecting strong financial performance in Q3 FY24-25, with significant growth in net sales and operating profit. The company maintains a low debt-to-equity ratio and a high return on capital employed, though it faces challenges in management efficiency.
NDR Auto Components, a small-cap player in the auto ancillary industry, has recently undergone an evaluation adjustment reflecting its financial standing. The company has reported positive financial performance for the third quarter of FY24-25, showcasing a notable annual growth rate in net sales of 72.89% and an impressive operating profit increase of 139.69%. Over the past nine months, net sales reached Rs 520.74 crore, marking a growth of 22.38%.

The company's financial metrics indicate a low debt-to-equity ratio of 0.02 times, suggesting a conservative approach to leverage. Additionally, the return on capital employed (ROCE) has reached a high of 19.29%, while the profit before depreciation, interest, and tax (PBDIT) for the quarter stood at Rs 18.59 crore.

Despite these positive indicators, NDR Auto Components faces challenges with management efficiency, reflected in a return on equity (ROE) of 9.93%. The stock is currently trading at a premium compared to its peers, with a price-to-book value of 6.5. Notably, domestic mutual funds hold no stake in the company, which may indicate a cautious outlook on its valuation.

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