 "SKF India hits record high")
SKF India has rallied 10% to Rs 1,550, to hit a record high on BSE in intra-day on Wednesday, in an otherwise weak market.
The counter had seen a huge delivery-based trading after the company announced its July-September quarter (Q2FY17) earnings on October 21, post market hours.
According to BSE data, almost 100% of the total traded quantity on Friday, October 28, and Tuesday, November 1, had converted into delivery. LINK
SKF India reported double digit revenue growth in Q2FY17 after 10 quarters. Revenues were at Rs 662 crore, up 10.2% year-on-year (YoY), higher than an average analyst estimate of Rs 654 crore. Net profit came at Rs 60.3 crore, up 20.6% YoY and in line with analyst estimate of Rs 61 crore for the quarter.
EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 12.6% in Q2F17 from 11.8% in Q2FY16.
ICICI Securities recommended a ‘buy’ rating on the stock with a target price of Rs 1,585.
“We expect import substitution of industrial bearings, through ramp up in SKF Technologies, to be a key revenue driver for revenues and margin expansion as SKF is expected to improve its turnaround time while resultant cost saving would lead to market share gains,” the brokerage firm said in a result update.
In the auto segment, the company is witnessing improved demand in HUB-3 bearings with the Indian auto industry moving from the first generation bearing to third generation bearing. As per the management, over the next five years, one in every two cars is likely to use the third generation bearing. Currently, the same ratio is at 1:10 (i.e. one in every 10 car uses third generation bearing), added report.
Antique Stock Broking also maintains a ‘buy’ rating on the stock with a price target of Rs 1,599.
“In the auto segment we expect 2W and PV to continue to do well in coming quarters, on back of improving demand due to healthy rainfall, 7th pay commission pay changes for government employees and reducing interest rates. We believe improvement in mix of Gen next bearings and high growth in railways segment would improve overall business mix potentially,” the brokerage firm said in Q2FY17 results review.
At 01:20 pm, the stock was up 7.6% at Rs 1,520 on BSE, as compared to 0.87% fall in the S&P BSE Sensex. A combined 88,876 shares changed hands on the counter on BSE and NSE so far.
The counter had seen a huge delivery-based trading after the company announced its July-September quarter (Q2FY17) earnings on October 21, post market hours.
According to BSE data, almost 100% of the total traded quantity on Friday, October 28, and Tuesday, November 1, had converted into delivery. LINK
SKF India reported double digit revenue growth in Q2FY17 after 10 quarters. Revenues were at Rs 662 crore, up 10.2% year-on-year (YoY), higher than an average analyst estimate of Rs 654 crore. Net profit came at Rs 60.3 crore, up 20.6% YoY and in line with analyst estimate of Rs 61 crore for the quarter.
EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 12.6% in Q2F17 from 11.8% in Q2FY16.
ICICI Securities recommended a ‘buy’ rating on the stock with a target price of Rs 1,585.
“We expect import substitution of industrial bearings, through ramp up in SKF Technologies, to be a key revenue driver for revenues and margin expansion as SKF is expected to improve its turnaround time while resultant cost saving would lead to market share gains,” the brokerage firm said in a result update.
In the auto segment, the company is witnessing improved demand in HUB-3 bearings with the Indian auto industry moving from the first generation bearing to third generation bearing. As per the management, over the next five years, one in every two cars is likely to use the third generation bearing. Currently, the same ratio is at 1:10 (i.e. one in every 10 car uses third generation bearing), added report.
Antique Stock Broking also maintains a ‘buy’ rating on the stock with a price target of Rs 1,599.
“In the auto segment we expect 2W and PV to continue to do well in coming quarters, on back of improving demand due to healthy rainfall, 7th pay commission pay changes for government employees and reducing interest rates. We believe improvement in mix of Gen next bearings and high growth in railways segment would improve overall business mix potentially,” the brokerage firm said in Q2FY17 results review.
At 01:20 pm, the stock was up 7.6% at Rs 1,520 on BSE, as compared to 0.87% fall in the S&P BSE Sensex. A combined 88,876 shares changed hands on the counter on BSE and NSE so far.