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Buy Schaeffler India; target of Rs 5900: Sharekhan

Sharekhan is bullish on Schaeffler India has recommended buy rating on the stock with a target price of Rs 5900 in its research report dated February 17, 2021.

February 19, 2021 / 15:16 IST
     
     
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    Sharekhan's research report on Schaeffler India

    estimates. It was yet another strong quarter, beating our earnings estimates by 17%, led by robust revenue growth and better-than-expected rise in EBITDA margins. \Given a robust outlook, we expect its earnings to grow at 38.6% CAGR from CY2020-22E, driven by a 21.4% revenue CAGR during CY2020-22E and a 240 bps improvement in EBITDA margins. The stock trades below its historical average at P/E of 28.7x and EV/EBITDA of 16.4x its CY2022E estimates.

    Outlook

    We retain a Buy rating on Schaeffler India Limited (SIL) with a revised PT of Rs. 5,900, led by a strong outlook for its automotive and industrial businesses, and an upgrade in earnings

    For all recommendations report, click here

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    Broker Research
    first published: Feb 19, 2021 03:16 pm

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