SCHAEFFLER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | SCHAEFFLER | Market Cap | 64,472 Cr. | Current Price | 4,125 ₹ | High / Low | 4,468 ₹ |
| Stock P/E | 51.6 | Book Value | 393 ₹ | Dividend Yield | 0.85 % | ROCE | 27.9 % |
| ROE | 20.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,026 ₹ | DMA 200 | 3,924 ₹ |
| Chg in FII Hold | -0.20 % | Chg in DII Hold | 0.21 % | PAT Qtr | 320 Cr. | PAT Prev Qtr | 328 Cr. |
| RSI | 51.8 | MACD | 85.1 | Volume | 3,17,383 | Avg Vol 1Wk | 1,73,270 |
| Low price | 3,403 ₹ | High price | 4,468 ₹ | PEG Ratio | 4.55 | Debt to equity | 0.01 |
| 52w Index | 67.8 % | Qtr Profit Var | 20.5 % | EPS | 80.0 ₹ | Industry PE | 27.3 |
📊 SCHAEFFLER demonstrates strong fundamentals with excellent ROCE (27.9%) and ROE (20.8%), reflecting efficient capital utilization and shareholder returns. The company maintains an extremely low debt-to-equity ratio (0.01), ensuring financial stability. EPS of ₹80.0 provides robust earnings visibility, and dividend yield of 0.85% adds shareholder value. However, valuations are expensive with P/E (51.6) significantly above industry average (27.3), and PEG ratio (4.55) indicates growth is not keeping pace with valuation. Current price ₹4,125 is above both DMA 50 (₹4,026) and DMA 200 (₹3,924), showing strong technical momentum. Entry zone is attractive near ₹3,950–4,050 for accumulation.
💡 Long-term investors may hold with a 5+ year horizon, given strong efficiency metrics and earnings visibility. Exit strategy: partial profit booking near ₹4,400–4,450 resistance or full exit if valuation multiples expand further without earnings growth.
Positive
- 📈 Strong ROCE (27.9%) and ROE (20.8%).
- 💰 Extremely low debt-to-equity ratio (0.01), ensuring balance sheet strength.
- 🔎 EPS of ₹80.0 supports robust earnings visibility.
Limitation
- ⚠️ High P/E (51.6 vs industry 27.3) indicates overvaluation.
- 📊 PEG ratio (4.55) reflects expensive growth.
- 📉 PAT declined slightly from ₹328 Cr. to ₹320 Cr. QoQ.
Company Negative News
- 📉 FII holding decreased (-0.20%), showing reduced foreign investor confidence.
- 📊 Valuation concerns due to high P/E and PEG ratios.
Company Positive News
- 📈 DII holding increased (+0.21%), reflecting domestic institutional support.
- 📊 Technicals: RSI at 51.8 and MACD positive (85.1), showing bullish momentum.
Industry
- 🏭 Industry PE at 27.3 is much lower than SCHAEFFLER’s 51.6, highlighting premium valuation.
- 📈 Auto components sector benefits from rising demand in EV and industrial applications.
Conclusion
⚖️ SCHAEFFLER is a fundamentally strong company with excellent efficiency metrics and low debt, but trades at expensive valuations. Ideal entry is near ₹3,950–4,050. Long-term investors may hold for 5+ years, but cautious monitoring of valuation multiples is essential. Exit near ₹4,400–4,450 or on deterioration of profitability metrics.
This structured HTML report captures SCHAEFFLER’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against SKF India, Timken India, and NRB Bearings to highlight relative valuation and efficiency positioning in the auto components sector?