Dynamatic Technologies Q1 Review - Global Aerospace Supply Chain Issues, A Near-Term Drag: ICICI Securities

ICICI Securities Report

Dynamatic Technologies Ltd. Q1 FY25 performance was stable.

Key points:

1. Ebitda of Rs 401 million (up 8% YoY) was aided by the aerospace division.

2. Hydraulics division recovered sequentially while the metallurgy division continues to transition from automotive to aerospace.

3. India performance was better than overseas.

4. Net debt, at Rs 3.78 billion, was down 4.8% QoQ.

Despite intermittent hiccups stemming from ongoing supply chain issues, leading to rationalisation of build rates at OEMs, we remain positive on the Dynamatic Technologies prospects as the new contract wins in Q4 FY24 are likely to reflect in earnings from FY27.

We maintain 'Buy' and our target price of Rs 10,250, based on 45 times FY26E earning per share.

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