HSBC retains buy on SKF India, cuts target price to Rs 2,450

HSBC has cut target price on SKF India to Rs 2,450 from Rs 2,500 on the back of near term earnings cuts. HSBC has retained buy recommendation in the long term. Shares of SKF India ended up 0.8% at Rs 2191.55 on Thursday while the BSE Sensex closed 77.18 points up at 40,129.05.

Company Financials

For the quarter ended 30-09-2019, the company has reported standalone sales of Rs 747.20 crore, down -3.81 % from last quarter sales of Rs 776.83 crore and down -2.46 % from last year same quarter sales of Rs 766.04 crore. The company has reported net profit after tax of Rs 84.62 Crore in latest quarter.


Investment rationale

The second quarter saw sharp fall in automotive segment and deteriorating mix, cushioned by exports and industrial segment. The industrial segment shows potential and the automotive segment still offers room for share gain, said HSBC.