SCHAEFFLER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

📊 Core Financial Analysis

Profitability & Returns

EPS: ₹64.8 — strong earnings for a ₹4,047 stock.

ROE: 18.5% & ROCE: 25.0% — excellent return metrics, indicating superior capital efficiency.

PAT Qtr: ₹287 Cr vs ₹252 Cr — solid growth, Qtr Profit Var: +17%, showing consistent performance.

Debt & Leverage

Debt-to-Equity: 0.01 — virtually debt-free, a major strength.

Dividend Yield: 0.69% — modest but stable, reflects healthy cash flows.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 62.5 High vs industry PE of 31.2 — premium valuation

P/B Ratio ~11.6 Expensive, but justified by high ROE and brand strength

PEG Ratio Not available Likely high due to valuation, but earnings growth supports it

Intrinsic Value ~₹3,300–₹3,600 Current price is ~10–20% above fair value, reflecting quality premium

🏢 Business Model & Competitive Edge

Leading manufacturer of precision components, bearings, and automotive systems, with strong presence in industrial and mobility sectors.

Backed by global parent Schaeffler Group, giving access to advanced tech and R&D.

Competitive advantage lies in engineering excellence, diversified product base, and OEM relationships.

Beneficiary of EV transition, industrial automation, and infrastructure growth.

📉 Technical & Sentiment Indicators

RSI: 45.4 — neutral zone, no strong momentum.

MACD: 20.3 — bullish crossover, short-term strength.

Volume stable — consistent investor interest.

DMA 50 ≈ Current Price — consolidation zone.

FII slightly up, DII slightly down — neutral institutional sentiment.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹3,500–₹3,700

Closer to intrinsic value and 200 DMA.

Offers better margin of safety for long-term investors.

📈 Long-Term Holding View

Excellent candidate for long-term holding

Debt-free, high ROCE/ROE, and strong global backing.

Positioned well for industrial and automotive growth.

Valuation is rich, but justified by quality and consistency.

Would you like a peer comparison with SKF India or Timken to explore alternatives in the precision engineering space?

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