Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Buy Schaeffler India: target of Rs 2650: Sharekhan

Sharekhan is bullish on Schaeffler India has recommended buy rating on the stock with a target price of Rs 2650 in its research report dated April 27, 2022.

April 29, 2022 / 12:44 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Schaeffler India

SIL’s Q1CY2022 performance was led by higher-than-expected expansion in EBITDA margin, though revenue marginally missed expectations. Exports is a high-growth area for SIL, given the pedigree of its parent company. Greater localisation and focus on market share gains would aid revenue and EBITDA growth going forward. We expect its earnings to report a 33.4% CAGR during CY2021-CY2023E. The stock trades at a P/E of 31.3x and EV/EBITDA of 19.8x its CY2023E estimates.


Outlook

We retain our Buy recommendation on Schaeffler India Limited (SIL) with a revised PT of Rs. 2,650, led by a strong outlook for its automotive and industrial businesses and continuous improvement in margin profile.