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Last Updated : May 17, 2019 06:01 PM IST | Source: Moneycontrol.com

Hold SKF India; target of Rs 1845: ICICI Direct

ICICI Direct recommended hold rating on SKF India with a target price of Rs 1845 in its research report dated dated May 17, 2019.

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ICICI Direct's research report on SKF India


SKF India (SKF) reported weak Q4FY19 results, below our estimates. Revenues grew 6.4% YoY at Rs 748.4 crore. EBITDA margins came in at 14.8% vs. 15.1% YoY. Lower margins were on account of lower gross margins (-190 bps YoY). Other expenses de-grew 2.8% YoY. Accordingly, absolute EBITDA increased 4.6% YoY. PAT came in at Rs 82.2 crore, up 14.9% YoY primarily due to higher other income (forex income of Rs 6.7 crore) and lower depreciation expenses, which grew 55% and 0.3% YoY, respectively.


Outlook


We value the company at 24x P/E on FY21E EPS to arrive at a target price of Rs 1845/share. We have a HOLD recommendation on SKF.


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.



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First Published on May 17, 2019 06:01 pm
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