Wabco India Q4 Review - Strong Play On Exports, Domestic Truck Revival: ICICI Securities

A welder works on a piece of equipment at the automobile assembly plant in Jacarei, Brazil. (Photographer Dado Galdieri/Bloomberg)

Wabco India Q4 Review - Strong Play On Exports, Domestic Truck Revival: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Wabco India Ltd.’s Q4 FY21 earnings missed consensus profit expectations even as it surprised positively on growth (topline grew 76% YoY).

Ebitda margin contracted 106 basis points YoY to 11.7% due to commodity price inflation (gross margins down 979 basis points).

We structurally like the company’s business on:

  1. dominant market share (more than 85%) in domestic medium and heavy commercial vehicle industry,
  2. domestic truck industry is likely to remain on growth path well into FY24E with scrappage policy also likely to act as a demand buffer during the same period, and
  3. strong technology support (ZF Group) is likely to aid new product/content introductions (e.g. electronic stability control, air disc brakes, services) for both domestic/export market.

Click on the attachment to read the full report:

ICICI Securities Wabco India Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.