Buy WABCO India, target price Rs 9135: ICICI Securities

ICICI Securities has buy call on WABCO India with a target price of Rs 9135. The current market price of WABCO India Ltd. is Rs 7481.65. Time period given by analyst is one year when WABCO India Ltd. price can reach defined target.
WABCO India Ltd., incorporated in the year 2004, is a Mid Cap company (having a market cap of Rs 14171.35 Crore) operating in Auto Ancillaries sector.

WABCO India Ltd. key Products/Revenue Segments include Air Assist/Full Air Actuation Systems (Auto/Non-Auto) and Elements The, Spares And Others, Other Services, Software Services, Other Operating Revenue and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 503.81 Crore, down -29.92 % from last quarter Total Income of Rs 718.91 Crore and up 180.88 % from last year same quarter Total Income of Rs 179.37 Crore. Company reported net profit after tax of Rs 21.38 Crore in latest quarter.

Investment Rationale
Valuations are likely to remain industry leading for WIL considering its dominant India market share, strong export opportunities, and best-in-class technology support from parent (ZF group). The brokerage introduces FY24E and rollover to Sep’23E. Its earnings for FY22E / FY23E by 6.4%/ 2.6%, and maintain target multiple at 40x Sep’23E EPS of Rs228. It upgrades the stock to BUY from ADD with revised target price of Rs9,135 (earlier: Rs7,629).

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 0.67 per cent, DIIs 16.24 per cent.