FAG Bearings Has Target of Rs 850: Kapadia


Ranjit Kapadia, Head of Research of PCG, Prabhudas Lilladher is of the view that FAG Bearings has target of Rs 850.

Kapadia told CNBC-TV18, "FAG Bearings is currently trading at Rs 644; it's trading at 11 times the current year earnings calendar year 07 and 8.5 times 08 earnings. So the stock has got good potential about 40-45% from this level. The major upside from three different aspects - one is the industrial production, India is showing a double digit growth for last four months and this is likely to continue."

He further added, "Second, the railways have increased the allocation in the Budget and third, the auto segment is showing a steady growth in current year and likely to continue except in the two wheeler segment. So this company's presence is in all the three segments and it's likely to show the growth in topline as well as in the bottomline. My target is about 40% upside from these levels of about Rs 850."

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