Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy NRB Bearings; target of Rs 110: ICICI Direct

ICICI Direct is bullish on NRB Bearings recommended buy rating on the stock with a target price of Rs 110 in its research report dated December 17, 2020.

December 17, 2020 / 03:47 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on NRB Bearings

NRB registered a rebound in its Q2 performance led by improved production levels at domestic OEMs on account of festive stocking. The performance was further aided by higher exports and strong traction in tractors. Revenue for Q2 came in at Rs 197.7 crore, down 4.6% YoY (vs. I-direct estimate of Rs 195.8 crore). Gross margins expanded sharply by ~610 bps. Consequently, EBIDTA margins improved ~530 bps to 15.4%. NRB registered absolute EBIDTA of Rs 30.4 crore, up 60% YoY. Even though tax rate for the quarter was at 34.7%, ensuing PAT came in at Rs 11 crore after adjusting for minority interest. During H1FY21, NRB generated CFO to the tune of ~Rs 63 crore. Further, debt reduced by ~ Rs 58 crore during H1.


Outlook

We estimate an EPS of Rs 7.4/share for FY23E, implying earnings yield of 8% at the CMP. Reflecting the improved outlook for NRB, we upgrade the stock from HOLD to BUY ascribing a 15x multiple to FY22E EPS to arrive at a target price of Rs 110/share.

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.


Broker Research
first published: Dec 17, 2020 03:47 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347