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This Stock Has A Potential To Give 35% Returns In 1 Year: ICICI Direct Recommends

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Brokerage firm ICICI Direct recommended buying the stocks of NRB Bearings, for a target price of Rs. 220. NRB has been chosen as the exclusive supplier for Ola's two-wheeler segment and has been working on customized needle bearings it requires.

 

Target Price

Target Price

The Current Market Price (CMP) of NRB Bearings is Rs. 160. The brokerage firm, ICICI Direct has estimated a Target Price for the stock at Rs. 220. Hence the stock is expected to give a 35% return, within 1 year. ICICI thinks, "NRB has been making strides towards innovation and R&D. The company is going ahead, a boost in e-vehicle sales will help the company to grow."

Stock Outlook
Current Market Price (CMP) Rs. 160
Target Price Rs. 220
1 Year returns 35.00%

Company performance
 

Company performance

NRB Bearings's revenue stood at Rs. 762.4 crore in FY 21, which is expected to grow at Rs. 930.2 crore in FY 22. The company's Net Profit stood at Rs. 54.1 crore in FY 21, which is expected to grow at Rs. 79.2 crore in FY22. NRB Bearings's EBITDA stood at Rs. 103.9 crore in FY 21, which is expected to grow at Rs. 148.8 crore in FY 22. The company has a revenue break-up of 78% from domestic sales and 22% from exports.

Comments by ICICI Direct

Comments by ICICI Direct

According to ICICI Direct, "The company will not only focus on products, which are EV based but also expand to newer areas of business development that includes products for steering systems, hybrid and electrical transmission and other applications for EV and hybrid vehicles. The company is also focusing on new products with the adoption of BS-6 norms." The brokerage firm thinks, "Upcoming e-markets and the company's strategy to have overseas business with organizations having a strong presence in the EV segment" - is a key trigger for future price performance.

About the company

About the company

NRB was incorporated in 1965 as an Indo-French venture and pioneered the production of needle and roller bearings in India. NRB is India's largest needle and cylindrical roller bearings producer, and now 90% of vehicles on Indian roads run on NRB parts.

Disclaimer

The above stock was picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

(Also read: Sharekhan Recommends Buying Tech Mahindra Stocks: See Valuation And Performance)

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Story first published: Friday, December 31, 2021, 6:40 [IST]
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