SKF India Ltd., incorporated in the year 1961, is a Mid Cap company (having a market cap of Rs 11647.58 Crore) operating in Auto Ancillaries sector.
Financials
For the quarter ended 31-12-2020, the company reported a Standalone sales of Rs 818.72 Crore, up 16.42 % from last quarter Sales of Rs 703.24 Crore and up 15.75 % from last year same quarter Sales of Rs 707.34 Crore Company reported net profit after tax of Rs 128.11 Crore in latest quarter.
Investment Rationale
Taking cognisance from the recent auto numbers, recovery in industrials, the brokerage revises estimates upwards. It introduces FY23E numbers and pencil in 17%, 24.5% & 25.9% revenue, EBIDTA & PAT CAGR for FY21E-23E, respectively. Hence, with improved outlook and enhance visibility, it upgrades the stock from HOLD to BUY valuing the stock at 33x FY23E earnings with a target price of Rs 2890/share (earlier Rs 1615).
