Expect 30% Upside in SKF India: Phani Sekhar

Resource from: CBCC Likes:2932

Dec 14,2009

Sekhar told CNBC-TV18, "SKF is a blue chip multinational company which is a leader in bearings segment in India. It outsources some of the bearings from its parent while some are manufactured in house. Its growth is highly dependent on the revival and the ultimate performance of the industrial segment in India as well as the auto segment. Expectedly its sales took a hit because of the sudden slowdown in the macro environment but with a pickup in both autos and industrials, its topline has started improving while its margins have already improved in the last couple of quarters because of the fall in commodity price.” He further added, “The return ratios and operating margins have never been a concern from the long term perspective because this business again from an industrial capex and an auto-OEM perspective is mainly going to the organized players and SKF here again is the leader. So one clearly has to see what topline growth that is possible in this company for the next 2-3 years and also for the industry.” “With an 18-20% topline possibility this company is just available at 11-12 times one year forward earnings. It immediately qualifies to be a buy because the PE again is at the historically lower levels. One can expect a 30% kind of upside even after the rally that one has seen in the last one month or so.”

()

【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.

Add to My Favorites

[Close the window]

Previous Dakar Rally as the Birthplace of Modern Throttle Valve Bearings
Next Tapered Roller Bearings "Value" Redefined

BRIEF INTRODUCTION

Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.

Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.

China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.