Please refer to important disclosures at the end of this report
1
FAG Bearings India (FAG India) Limited is an India-based company, which is
engaged in the sale of ball/roller bearings and related components and sale o
f
machines. FAG India has its presence in automotive and across all core
industrial segments. The implementation of stricter emission rules, it may benefit
FAG India as it is turning into an incremental revenue driver for the bearing
industry. FAG Bearings is expected to reap the highest benefit since it is the
market leader in the passenger car segment where volume visibility is the highest
among all the automobile segments its market share in the passenger ca
r
segment is expected to increase in years to come. FAG Bearings has
commissioned a new plant at Savli in Gujarat with an investment of `400crore
and it has potential to generate `1,000crore in revenue at peak utilisation. With
higher utilisation of the new plant and increased proportion of the ne
w
generation bearings in its product mix could help the company boost its margins.
The government’s plan to upgrade railway infrastructure by projects such as
dedicated freight corridors, high-speed trains and metros in major cities can
nearly double the demand for bearings from the railways. The company is
virtually debt free. The company has reported an ROE of 17.55% over the last 5
years. Hence Buy.
BUY
CMP `4,105
Stock Info
Sector
Beta 0.6
Bloomberg Code
Shareholding Pattern (%)
Promoters 51.3
MF / Banks / Indian Fls 34.9
FII / NRIs / OCBs 5.3
Indian Public / Others 8.5
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
FAG Bearings India 1.1 4.2 201.0
Reuters Code FAGB.BO
FAG@IN
10
BSE Sensex 26,150
Nifty 8,074
Face Value (
`
)
Auto Ancillary
Market Cap (
`
cr) 6,822
52 Week High / Low 4998/3707
Avg. Daily Volume 1,516
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
FAG Bearings India
Others |
A
uto Ancillar
y
November 21, 2016
FAG Bearings India|
A
uto Ancillar
y
November 21, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement FAG Bearings India
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)