1 LGBBROSLTD share price target reports by brokerages below. See what is analyst's view on LGBBROSLTD share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The stock currently trades at 56.6x FY21e EPS of Rs 3.62 and 8.9x FY22e EPS of Rs 22.97. Unprecedented stress in earnings awaits most autocomponent suppliers this fiscal not least due to record fall in their OEM dispatches. Yet companies like LGB who have modest financial leverage and would post no small free cash flow generation would weather the current shock. Earnings are estimated to rebound sharply next fiscal on modest return on capital. The stock merits a buy recommendation at the current valuation. On balance we set the price target of Rs 276 (previous target: Rs 397) based on 12x FY22 earnings over a period of 9-12 months
The stock currently trades at 10.5x FY20 e EPS of Rs 24.48 and 7.8x FY21e EPS of Rs 33.08. Gloominess over the state of consumer spending trends in India has cast shadow on demand recovery in several industries - textiles, consumer durables, automobiles, to name a few. Yet softening interest rates coupled with recently announced corporate tax cut is expected to revive the private investment cycle (though not sturdily) over the next few quarters. The automobile industry is also expected to turn the corner anytime soon helping the fortunes of auto component suppliers who have been ravaged by demand slowdown. LGB would be no exception for its volumes are estimated to rise by some 10% next fiscal on higher margins. Given modest valuation (compared to historic trends) we advise buy the stock at current levels with revised target of Rs 397 (previous target: Rs 544) based on 12x FY21e earnings.
The stock currently trades at 12.2x FY19e EPS of Rs 31.63 and 9.9x FY20e EPS of Rs 38.87. Apart from higher capacities, the commissioning of Chennai plant sometime early next fiscal would strengthen its OEM engagement. Ample scope exists for capacity ramp up at this plant as and when required. Amplified by modest volume growth (in excess of 10% for both the bossiness) earnings are projected to rise 16.4% on mid-teen growth in revenues. On balance we maintain our buy rating on the stock with target of Rs 544 (previous target: Rs 662) based on 14x FY20e earnings.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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