ICICI Direct has given Buy recommendation for ZF Commercial Vehicle Control with a target price of Rs. 12,160 in its research report issued on Sep 08, 2022

ICICI Direct’s research report on ZF Commercial Vehicle Control

ZF Commercial Vehicle Control Systems India (ZFCV) (erstwhile Wabco India), now part of the ZF Group, is the market leader in the CV braking space and a technology-focused complete solutions provider. FY22 sales channel mix – OEM ~45%, aftermarket ~14%, exports ~41% • FY22 product mix: Sale of products ~91%, Services ~9%.

Outlook

We retain BUY on ZFCV amid cyclical upswing in CV space with ZFCV a key beneficiary, solutions in EV domain and advance technologies supporting its quest for content/vehicle increase. Upgrading our estimates, we now value the company at Rs 12,160 i.e. 54x P/E on FY24E EPS (earlier target price Rs 10,530).

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