Wabco India - high market share, margins, technology back up - BRICS Research

Wabco India (CMP Rs1,161, NOT RATED)

High market share, margins, technology back up

Wabco India pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With its strong portfolio and technology backup, it has gained a leading position in both OEM markets (85%) and replacement markets (75%).

Wabco India's balance sheet quality has remained very strong, which is reflected in zero debt, high RoCE of 58%, high asset turnover of 3x, and a net fixed asset turnover of 4.6x in FY11.

At its current market price of Rs1,161, the stock trades at 14.5x FY12E and 11.7x FY13E consensus earnings.

We like Wabco India for its strong business placement, large market share, high margin, and strong technology back-up.

Source : Equity Bulls

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