Buy SKF India; target of Rs 723: Firstcall Research

3824 Investors following SKF India. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy SKF India; target of Rs 723: Firstcall Research

Firstcall Research is bullish on SKF India and has recommended buy rating on the stock with a target of Rs 723 in its June 25, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate Coal India; target of Rs 403: Aditya Birla Money Buy Essel Propack; target of Rs 61: Nirmal Bang Buy Dabur India; target of Rs 139: A C Choksi ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about SKF India See messages about SKF India SKF India BSE | NSE 31/05/12 Are Mutual Funds betting on SKF India?

Firstcall Research is bullish on SKF India and has recommended buy rating on the stock with a target of Rs 723 in its June 25, 2011 research report.

"SKF Group is the leading global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. SKF and Bombardier Aerospace have entered into a long-term contract for SKF to supply over 40 different rod assemblies and titanium bearings for Bombardier's all new CSeries aircraft. SKF delivers critical components to flywheel systems and is now entering a project with Volvo Car Corporation and Volvo Group aimed at taking flywheels to mass production. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 38% over 2009 to 2012E. SKF India has posted profit of Rs 609.50 million for the quarter ended on March 31, 2011 as against Rs 435.70 million in the same quarter last year, an increase of 39.89%. It has reported net sales of Rs 6332.30 million for the quarter ended on March 31, 2011 as against Rs 5042.80 million in the same quarter last year, a rise of 25.57%. During the quarter, it reported earnings of Rs 11.56 a share."

"At the current market price of Rs 640, the stock is trading at 15.43 x CY11E and 13.70 x CY12E respectively. Earning per share (EPS) of the company for the earnings for CY11E and CY12E is seen at Rs 41.47 and Rs 46.73 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 38% over 2009 to 2012E respectively. On the basis of EV/EBITDA, the stock trades at 10.12 x for CY11E and 9.10 x for CY12E. Price to Book Value of the stock is expected to be at 3.16 x and 2.57 x respectively for CY11E and CY12E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 723 for Medium term investment," says Firstcall research report.

Public holding more than 90% in Indian cos

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