Buy FAG Bearings, target of Rs 623: Angel Broking

ALSO READ See previous views by Angel Broking See what other Experts & Brokerages are saying about FAG Bearings See messages about FAG Bearings FAG Bearings BSE | NSE 13/02/12 Are Mutual Funds betting on FAG Bearings?

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.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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