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Last Updated : Feb 26, 2016 12:37 PM IST | Source: CNBC-TV18

Buy Jubilant Food; like Timken India, NRB Bearings: Rahul Arora

Watch the interview of Rahul Arora, CEO at Nirmal Bang Institutional Equities with Ekta Batra & Anuj Singhal on CNBC-TV18, in which he shared his readings and outlook on the market, specific stocks and sectors.

Rahul Arora, CEO at Nirmal Bang Institutional Equities told CNBC-TV18, "I am still getting a price target of about Rs 1,450-1,500 in Jubilant Foodworks which is still 45-50 percent upside. So I would still be a buyer in the stock. I have not concerns with the franchise, of course a large part of it is discretionary in nature, so it may or may not play out in the immediate short-term but I still think it is a great stock to be holding on to." 

"About a month back we initiated on the bearing sector, it is fairly under research sector. We like Timken India, NRB Bearings and SKF India. These have come down to fairly attractive levels. Timken India has come at about 22 times on FY'18 numbers while NRB is at 13 times. These are all 20 percent return on capital employed (RoCe) businesses with good margin profiles and yesterday's Railway Budget announced three dedicated freight corridors," he said.

"Timken is already doing about 50 percent of its business in railways, so there is revenue visibility in some of these names. TD Power Systems is another one where GE is L1 in the Bihar locomotive factory; the generators would be supplied from there. So there are some names that are happening in the economy that you cannot take a blanket overweight call but if you go sectorwise, there may be opportunities available."

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First Published on Feb 26, 2016 11:49 am
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