Equity Analysis /
India

IN : SKF India Ltd - FY22 annual report analysis

    CGS-CIMB
    18 July 2022
    Published byCGS-CIMB

    Sustaining end-market demand in FY23F, increased market penetration, focus on REP, and continuous recovery in gross margin gel well for earnings growth. Gross margin pressure in FY22 was higher in traded goods, whose share was up by 50bp yoy. Operating leverage and pricing supported EBITDA margin. Maintain Add rating on the stock with a higher target price of Rs4,200.