Buy Banco Products; target Rs 50: Sunidhi Securities
Sunidhi Securities is bullish on Banco Products (India) and has recommended 'Buy' rating on the stock with a price target of Rs 50 in its October 05, 2013 research report.
October 07, 2013 / 17:57 IST
Sunidhi Securities' report on Banco Products (India)
"BPIL has been a dedicated supplier of high quality engine cooling components and engine sealing gaskets to the automotive industry for over four decades. It offers complete line of radiators, intercoolers, oil-coolers and all types of engine gaskets. Both radiator and gasket product groups have sound manufacturing facilities which have been constantly upgraded and are supported by sophisticated research and development facilities for new projects or models OEM and other customers come up with.""BPIL is India’s largest exporter of aftermarket radiators to the Europe with a growing presence in the North American/Middle-Eastern/African and South American markets. As its products are designed to meet OE standards, it provides exceptional quality and product range for the aftermarket repair trade. Moreover, BPIL is known for its quality products and it is expanding its business to global market and also opening new avenues across the world especially in Asian and European countries. The Indian market conditions are acting as a catalyst for luxury and premium carmakers, which receive a boost from new launches and numerous offers from carmakers, thereby giving impetus to the auto components industry.""BPIL has been developing new markets both in India and abroad, substantially broad basing export sales, penetrating existing markets and launching new products and building ‘Banco’ brand. In addition, there is an increased focus on achieving greater efficiency through cost reduction initiatives and better supply chain management. At the current market price of Rs 36, the share is trading at a P/E of 3.4x on FY14E and 3.0x on FY15E. We recommend BUY with a target price of Rs 50 in the medium term," says Sunidhi Securities research report.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. 
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