Sharekhan has given Buy recommendation for Schaeffler India with a target price of Rs. 5900 in its research report issued on Feb 17, 2021
Sharekhan’s research report on Schaeffler India
estimates. It was yet another strong quarter, beating our earnings estimates by 17%, led by robust revenue growth and better-than-expected rise in EBITDA margins. Given a robust outlook, we expect its earnings to grow at 38.6% CAGR from CY2020-22E, driven by a 21.4% revenue CAGR during CY2020-22E and a 240 bps improvement in EBITDA margins. The stock trades below its historical average at P/E of 28.7x and EV/EBITDA of 16.4x its CY2022E estimates.
Outlook
We retain a Buy rating on Schaeffler India Limited (SIL) with a revised PT of Rs. 5,900, led by a strong outlook for its automotive and industrial businesses, and an upgrade in earnings