Buy WABCO India; target Rs 1316: Firstcall Research

1382 Investors following WABCO India. Share this News with them.

0

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

Buy WABCO India; target Rs 1316: Firstcall Research

Firstcall Research is bullish on WABCO India and has recommended buy rating on the stock with a target price of Rs 1316 in its January 3, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Everest Inds; target of Rs 150: Sunidhi Securities Unicon Investment paves road to trade rupee, BHEL, Cairn Buy Nifty future in 4730-4735 range: ICICIdirect.com ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about WABCO India See messages about WABCO India WABCO India BSE | NSE 29/05/12 Are Mutual Funds betting on WABCO India?

Firstcall Research is bullish on WABCO India and has recommended buy rating on the stock with a target price of Rs 1316 in its January 3, 2012 research report.

"WABCO-TVS (INDIA) is a joint venture between TVS Group and WABCO Holdings Inc. The company has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. Net Sales and PAT of the company are expected to grow at a CAGR of 25% and 30% over 2010 to 2013E respectively. WABCO Announces Agreement with IVECO to Supply Anti-Lock Braking Systems with Breakthrough Technology to Certify Electronic Stability Control WABCO-TVS (INDIA) Limited supplies original equipment fitments for vehicles manufactured by Ashok Leyland, TATA Motors etc. During the quarter, the company has reported Net Profit increased to Rs.426.01 million from Rs.337.88 million in previous year same quarter."

"The company disclosed results for the quarter ended Sep 2011. Net sales for the quarter increased by 17% to Rs.2644.22 million as compared to Rs.2259.38 million during the corresponding quarter last year. During the quarter, the company has reported Net Profit increased to Rs.426.01 million from Rs.337.88 million in previous year same quarter. The Basic EPS of the company stood at Rs.22.46 for the quarter ended Sep 2011."

"At the current market price of Rs.1165.00, the stock is trading at 14.52 x FY12E and 12.72 x FY13E respectively. Price to Book Value of the stock is expected to be at 4.10 x and 3.10 x respectively for FY12E and FY13E. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.80.26 and Rs.91.60 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 25% and 30% over 2010 to 2013E respectively. WABCO Announces Agreement with IVECO to Supply Anti-Lock Braking Systems with Breakthrough Technology to Certify Electronic Stability Control WABCO-TVS (INDIA) Limited supplies original equipment fitments for vehicles manufactured by Ashok Leyland, TATA Motors etc. During the quarter, the company has reported Net Profit increased to Rs.426.01 million from Rs.337.88 million in previous year same quarter. On the basis of EV/EBITDA, the stock trades at 9.26 x for FY12E and 8.18 x for FY13E. Buy the stock for target of Rs 1316," says Firstcall Research report.

Bodies Corporate holding more than 50% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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