Angel Broking has come out with a research report on FAG Bearings. The research firm has recommended a buy on the stock with a target price of Rs 623, in its report dated November 12, 2009.

"Given the good long-term growth opportunities, impressive clientele, strong parent company and good OPMs of around 15-18%, we expect FAG Bearings (FAG) to record a CAGR growth of 8% in volumes, which will drive a CAGR of around 12% and 25% in revenues and profits respectively over FY2009-11E. Its debt free status and high return ratios are other positives in favour of the company. Moreover, the stock is attractively priced, based on relative valuation with its peers. We are rolling over to CY2011E, and have arrived at a target price of Rs 623, at which the stock would trade at 10x CY2011E EPS and 1.6x CY2011E BV. We recommend a buy on the stock", says Angel Broking.

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To read the full report click on the attachment.........