SKF India may give 25-30% gains in a year's time, says VK Sharma, Head Private Broking & Wealth Management, HDFC Securities.
Sharma told CNBC-TV18, "SKF India, it is not for the short term. We have looked at these stocks for the longer term and the best thing to look at is the results are tomorrow - one can look at the results what the management has to say and there after there is no need to hurry to buy these stocks because these are effectively long term stocks so even if the stock would tumble down it should look better. From that perspective I think we have looked at SKF primarily for this reason that it is a company which is a play on both autos and industrial and a clean MNC company and the objective is to make India as a base and export from here. We clearly see a good outline, there is every traction in terms of growth which we would expect it to post something like 25% CAGR in the next 2 years so from that perspective it is a safe buy."
He further added, "These are not the stocks which are being recommended today but recommended in the past in your channel as well. There is no need to hurry to buy in SKF. It is low on volumes and maybe from the current levels to around Rs 30-40 lower you can average this out for a return of 25 to 30% in a year's time."
