Buy SKF India, target price Rs 2890: ICICI Securities

ICICI Securities has buy call on SKF India with a target price of Rs 2890. The current market price of SKF India Ltd. is Rs 2310.25.

SKF India Ltd., incorporated in the year 1961, is a Mid Cap company (having a market cap of Rs 11455.52 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 852.19 Crore, up 3.02 % from last quarter Total Income of Rs 827.24 Crore and up 29.78 % from last year same quarter Total Income of Rs 656.65 Crore. Company has reported net profit after tax of Rs 104.87 Crore in latest quarter.

Investment Rationale
Taking cognisance of recent auto numbers, recovery in industrials and management commentary, the brokerage broadly maintain estimates. It pencils in 16.5%, 21.1% & 20.6% revenue, EBIDTA & PAT CAGR, respectively for FY21-23E. It maintains BUY rating on the stock. It values the stock at 33x FY23E earnings with an unchanged target price of Rs 2890/share

(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)