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Budget 2021

Associate Partners:

  • SMC
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  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Buy Sundram Fasteners: target of Rs 650: Sharekhan

Sharekhan is bullish on Sundram Fasteners has recommended buy rating on the stock with a target price of Rs 650 in its research report dated December 18, 2020.

December 21, 2020 / 03:13 PM IST
 
 
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Sharekhan's research report on Sundram Fasteners


Interaction with the management indicates that strong growth traction in automotive industry led by growth in sales of passenger cars, light commercial vehicles, tractors and two wheelers, with the exception of MHCVs. Export and non-automotive segments continue to be the focus area with a strategy to de-risk business from cyclicality. We expect SFL’s earnings to grow by 69.4% in FY2022E and 40.6% in FY2023E, driven by a 25.2% CAGR during FY2021E-23E and a 310-bps improvement in EBITDA margin. Stock trades attractively at P/E multiple of 22.1x and EV/EBITDA multiple of 13x its FY2023E estimates.


Outlook


We maintain our Buy rating on Sundram Fasteners Limited (SFL) with a revised PT of Rs. 650, factoring in better multiples on a strong traction in business outlook and an upgrade in earnings estimates.


For all recommendations report, click here


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.

Broker Research
first published: Dec 21, 2020 03:13 pm

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