Sona Koyo Steering: Buy (The Hindu Business Line 11th Feb 20011)Investors with moderate return expectations and a perspective of three years or more can consider exposure to Sona Koyo Steering, which produces steering systems and other driveline products for the passenger cars industry. Its major customer, Maruti, brings in more than 50 per cent of the revenues. Mahindra and Mahindra, Hyundai, Toyota and Tata Motors chip in with the rest. The company’s market leadership position, healthy order flows, superior product-mix and localisation efforts indicate that earnings can gain traction over three-five years. Considering that the stock has been on a steady move upwards in the last few months, the sharp fall in market price in the recent correction presents a good opportunity to buy. At the current market price of Rs 54, the stock trades at a PE of around 15 times the trailing 12-month earnings.Financials For the quarter December 2007, sales stood at Rs 172 crore, growing by 14 per cent...
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