Geojit Financial Services' is bullish on Banco Products has recommended buy rating on the stock with a target price of Rs 233 in its research report dated March 16, 2017.
Geojit Financial Services' research report on Banco Products
After a sluggish H1FY17, we expect domestic CV industry to pick up in FY18 on the implementation of BS-IV emission norms by 1st April 2017. BPIL registered a consolidated revenue growth of 9%YoY for the period 9MFY17 whereas standalone revenue has grown by 8%YoY.
Considering the near term headwinds from the surge in raw material price we lower our PAT estimate for FY18E by 1.5% respectively. We roll over our valuation to FY19E EPS and value at a P/E 11x (3yr historical average) with a revised target price of Rs 233 and maintain our Buy rating.
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