Stock market analysts have maintained ‘buy’ rating on Amtek Auto Ltd with an intraday target of Rs 197.

According to them, interested traders can purchase the stock above Rs 194.50 with a strict stop loss of Rs 189.50.

If the bourses remain on the positive track, then the stock price will hit a target above Rs 202.

Shares of the company, on Monday (Nov 16), closed at Rs 194.70 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 236 and a low of Rs 42.25 on BSE. Current EPS & P/E ratio of the stock stood at 9.63 & 21.02 respectively.

According to the reports, Amtek Auto has entered into a JV deal with Sumitomo Metals of Japan for manufacture and sale of forged crank shafts for automotive applications in the Indian market.

Moreover, there are reports that Amtek Auto is in advanced talks to get hold of OCL Iron and Steel (OISL) operated by Raghu Hari Dalmia. The deal would value the company approx Rs 3.50 billion.

Amtek Auto, on Nov 16, has bought back and cancelled FCCBs having face value of $9.5 million of June 2010 at a discount compliant with the central bank’s FCCB Buyback rules.

Due to their redemption of FCCBs, Amtek Auto’s outstanding FCCBs as on date stood at $8 million.

Amtek Auto, on Nov 09, has declared that the company’s Allotment Committee allotted 2701846 equity shares at Rs 148.40 a share upon the exchange of FCCB’s worth US $8.245 million.