1 NRBBEARING share price target reports by brokerages below. See what is analyst's view on NRBBEARING 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.
With a dip in growth expected in FY20E and sluggish environment overall, we expect revenue, EBITDA and PAT to de-grow 6.5%, 20.1% and 24.1% CAGR, respectively, in FY19-21E. We expect the recovery to be modest in FY21E but the timing of the same is difficult to envisage. On the whole, lower asset turns and volatile margins will negatively impact RoCEs, which are expected to decline to 12.3% in FY21E from 21% in FY19. The current valuations at 17.1x FY21E P/E mostly capture a recovery in auto demand and leave no upside. We value NRB at ~15x FY21E earnings to arrive at a target price of | 95/share. We have a REDUCE rating (earlier HOLD) on the stock.
With growth moderation expected in FY20E, we expect revenue, EBITDA and PAT to grow at 9.8%, 8.1% and 4.3% CAGR, respectively, in FY19-21E. NRB has executed a capex of ~Rs 50 crore in FY19. The company currently operates at utilisation levels of ~80%. For FY20-21E, NRB has planned a capex ~| 100-150 crore. Debt levels have gone up from ~Rs 173 crore in FY18 to ~Rs 260 crore in FY19. Going ahead, debt levels’ working capital management will be the key monitorable. We value NRB at ~15x FY21E earnings to arrive at a target price of Rs 185 per share. We have a HOLD recommendation on the stock.
In view of the changing market dynamics & NRBBR’s focus on exports revenue, we continue to maintain our positive view on the company. NRBBR is focusing on diversifying its product mix towards a friction solutions provider from bearings. Keeping higher valuations & lower anticipated revenue growth in view, we value NRBBR at 16x (5 year average of one year forward PE) to FY20E EPS of Rs.12.3 with a target price of Rs. 200, an upside of 12% and retain our “HOLD” rating. Slowdown in automotive segment along with volatility in raw material prices may pose threat to the call.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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