Brokerwatch FAG Bearings India Initiated at 'Accumulate' at Angel Broking

Angel Broking Ltd said it has started coverage on FAG Bearings India Ltd with an 'accumulate' rating and 12-month price target of 801 rupees.

FAG Bearings, a unit of Germany's FAG group, manufactures bearings for automotive and industrial applications.

The broker said it expects FAG to record a compounded annual growth rate (CAGR) of 14 pct in volumes, which will drive revenues and profits growth over 2007-09, given the company's good long-term growth opportunities, impressive clientele, strong parent and sustained operating margins of over 20 pct.

High and sustainable return ratios are another positive for the company, it added.

At 1005 GMT, the stock was trading up 1.27 pct at 670 rupees on the Bombay Stock Exchange, while the benchmark index was up 1.45 pct at 20,640.26 points. TFN.newsdesk@thomson.com ypv/jro/ms1

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