⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SCHAEFFLER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | SCHAEFFLER | Market Cap | 64,022 Cr. | Current Price | 4,100 ₹ | High / Low | 4,468 ₹ |
| Stock P/E | 53.5 | Book Value | 352 ₹ | Dividend Yield | 0.85 % | ROCE | 29.8 % |
| ROE | 22.2 % | Face Value | 2.00 ₹ | DMA 50 | 3,954 ₹ | DMA 200 | 3,891 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.02 % | PAT Qtr | 328 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 52.3 | MACD | 15.7 | Volume | 1,39,668 | Avg Vol 1Wk | 1,02,767 |
| Low price | 2,823 ₹ | High price | 4,468 ₹ | PEG Ratio | 4.75 | Debt to equity | 0.01 |
| 52w Index | 77.6 % | Qtr Profit Var | 31.5 % | EPS | 76.5 ₹ | Industry PE | 25.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹307 Cr. to ₹328 Cr. (31.5% growth YoY).
- Margins: ROE at 22.2% and ROCE at 29.8% → excellent efficiency.
- Debt: Debt-to-equity ratio of 0.01 → virtually debt-free.
- Cash Flow: Strong, supported by consistent profitability.
- Return Metrics: EPS at ₹76.5, robust earnings power.
💹 Valuation Indicators
- P/E Ratio: 53.5 vs Industry PE of 25.0 → overvalued.
- P/B Ratio: Price ₹4,100 / Book Value ₹352 ≈ 11.65.
- PEG Ratio: 4.75 → expensive relative to growth.
- Intrinsic Value: Current valuation stretched, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in automotive and industrial component manufacturing.
- Competitive advantage lies in global presence, strong R&D, and diversified product portfolio.
- Debt-free balance sheet enhances resilience.
- Challenges include high valuation and cyclical demand in auto sector.
📈 Entry Zone Recommendation
- Technicals: RSI at 52.3 (neutral), MACD positive, price above 50DMA (3,954) and 200DMA (3,891).
- Entry Zone: Attractive accumulation near ₹3,900–4,000 for long-term investors.
- Holding Guidance: Suitable for long-term holding given strong fundamentals, but valuation risk persists.
✅ Positive
- Strong ROCE (29.8%) and ROE (22.2%).
- Debt-free balance sheet (Debt-to-equity 0.01).
- Quarterly PAT growth of 31.5% YoY.
⚠️ Limitation
- High P/E (53.5) compared to industry average (25.0).
- High P/B ratio (11.65).
- Dividend yield modest at 0.85%.
📉 Company Negative News
- FII holdings decreased (-0.01%).
- DII holdings decreased (-0.02%).
- Stock corrected from ₹4,468 to ₹4,100.
📈 Company Positive News
- Quarterly PAT improved to ₹328 Cr.
- MACD positive, showing bullish technical momentum.
- Strong operational efficiency with high ROCE and ROE.
🌐 Industry
- Auto components industry benefits from global demand recovery and EV adoption.
- Industry PE at 25.0 indicates sector trades at lower valuations compared to SCHAEFFLER.
- Global OEM partnerships provide long-term opportunities.
🔎 Conclusion
- SCHAEFFLER shows excellent fundamentals with strong profitability and debt-free balance sheet.
- Valuations are stretched, limiting near-term upside.
- Best considered for long-term investors with entry near ₹3,900–4,000; holding depends on sustained earnings growth and industry demand recovery.