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SKF India has target of Rs 400: G Shah
Gaurang Shah of Geojit Financial Services is of the view that SKF India has target of Rs 400. It is a 53% subsidiary of SKF Sweden and one of the leading manufacturer of both automotive and industrial purpose used bearings. Going forward the parent company is planning to invest about Rs 270 crore in its Ahmedabad plan to increase the production.
Gaurang Shah of Geojit Financial Services is of the view that SKF India has target of Rs 400.
Shah told CNBC-TV18, "SKF India is a 53% subsidiary of SKF Sweden and one of the leading manufacturer of both automotive and industrial purpose used bearings. It has got a well-balanced portfolio in both the segments that is automotive and industrial, which partly offsets the slowdown in the automotive sector as far as two-wheelers are concerned. Going forward the parent company is planning to invest round about Rs 270 crore in its Ahmedabad plan to increase the production in the large industrial bearings segment."
He further added, "They have got plans to invest round about Rs 100 crore in its Pune and Bangalore plan thereby increasing the total capacity upto 30%. The fact that the reduction in excise duty both on two-wheelers and small cars is going to argument well with the SKF products because of the fact the consumption could go up and possibly bring down the cost also. So keeping these facts in mind and understanding that SKF has also got five different technology platforms to better its products that they offer to the industry. We have a price target of round about Rs 400 with a timeframe of 1-1.5 year on the particular stock."
