Buy Igarashi Motors India with a target at Rs 705: Systematix Shares

Systematix Shares & Stocks revised their rating to accumulate from earlier buy on Igarashi Motors post March quarter results and has also revised its 12-month target price to Rs 705 from Rs 605 earlier.

"We expect FY17/18 will be the strong growth year aided by three new programs. We highlight IGM as a strong play on the emerging global powertrain technology (35% global market share in ETC motors), having the perfect blend of both industry and company specific drivers," said the brokerage note.

The firm expects motor volume and profitability to grow over 2x in the next four years, with upcoming programs and application diversification. It increases FY17e/18e earnings estimates by 5%/6%, led by 1% higher volume and margin assumptions.