HomeNewsBusinessStocksBuy ZF Commercial Vehicle Control System; target of Rs 10,530: ICICI Direct

Buy ZF Commercial Vehicle Control System; target of Rs 10,530: ICICI Direct

ICICI Direct is bullish on ZF Commercial Vehicle Control System has recommended buy rating on the stock with a target price of Rs 10,530 in its research report dated August 05, 2022.

August 07, 2022 / 12:12 IST
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"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

ICICI Direct's research report on ZF Commercial Vehicle Control System

ZF Commercial Vehicle Control Systems India (ZFCV) (erstwhile Wabco India), now part of the ZF Group, is the market leader in CV braking space and a technology-focused complete solutions provider. FY22 sales channel mix – OEM ~45%, aftermarket ~14%, exports ~41% • FY22 Product mix: Sale of products ~91%, Services ~9%.

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Outlook

We retain BUY on ZFCV amid introduction of advanced technologies, solutions for electric buses & well charted path on content/vehicle front. Upgrading our estimates, we now value the company at Rs 10,530 i.e. 50x P/E on FY24E EPS (earlier target price Rs 9,600).

For all recommendations report, click here