Wabco In­dia

{Ticker : 533023 { BUY: ₹6205 { Tar­get: ₹7350

Flash News Investment - - RECOMMENDATIONS -

Wabco In­dia is en­gaged in man­u­fac­tur­ing au­to­mo­tive com­po­nents such as air brake ac­tu­a­tion sys­tems for com­mer­cial ve­hi­cles and re­lated ser­vices. It en­joys lead­er­ship po­si­tion with mar­ket share of 85 per cent in the CV air brak­ing sys­tems. It is in­tro­duc­ing new prod­uct line like wiring har­ness, pole wheels, lift axle con­trol etc. which is gain­ing mo­men­tum and also into de­fence, lux­ury bus and trailer seg­ments . The gov­ern­ment’s higher safety norms to pre­vent road mishaps is boost­ing the pro­duc­tion of qual­i­ta­tive air brak­ing sys­tems of the com­pany. On the fi­nan­cial front, although mar­gins are at the same level, improvement is ex­pected once do­mes­tic busi­ness gets sta­bilised and through bet­ter prod­uct mix. The com­pany is vir­tu­ally debt-free and its TTM ROE is 17.2 per cent. Con­sid­er­ing these fac­tors, we rec­om­mend our read­ers to BUY this scrip.

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