SCHAEFFLER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | SCHAEFFLER | Market Cap | 63,779 Cr. | Current Price | 4,083 ₹ | High / Low | 4,468 ₹ |
| Stock P/E | 51.0 | Book Value | 393 ₹ | Dividend Yield | 0.86 % | ROCE | 27.9 % |
| ROE | 20.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,058 ₹ | DMA 200 | 3,950 ₹ |
| Chg in FII Hold | -0.20 % | Chg in DII Hold | 0.21 % | PAT Qtr | 320 Cr. | PAT Prev Qtr | 328 Cr. |
| RSI | 49.0 | MACD | -9.92 | Volume | 24,338 | Avg Vol 1Wk | 57,513 |
| Low price | 3,518 ₹ | High price | 4,468 ₹ | PEG Ratio | 4.50 | Debt to equity | 0.01 |
| 52w Index | 59.5 % | Qtr Profit Var | 20.5 % | EPS | 80.0 ₹ | Industry PE | 27.0 |
📊 Financials: SCHAEFFLER has a market cap of ₹63,779 Cr. Quarterly PAT stood at ₹320 Cr. vs ₹328 Cr., showing stability despite a slight dip. ROE at 20.8% and ROCE at 27.9% reflect strong efficiency and return metrics. Debt-to-equity ratio of 0.01 indicates an almost debt-free balance sheet, supporting robust cash flows. EPS at ₹80.0 is healthy, highlighting strong profitability.
💹 Valuation: Current P/E of 51.0 is significantly higher than the industry average of 27.0, suggesting overvaluation. P/B ratio (~10.4) is elevated compared to book value ₹393. PEG ratio at 4.50 indicates expensive growth relative to earnings. Intrinsic value appears lower than CMP ₹4,083, limiting near-term upside.
🏦 Business Model: SCHAEFFLER operates as a global leader in automotive and industrial bearings, precision components, and motion systems. Its competitive advantage lies in technological innovation, global OEM partnerships, and diversified industrial exposure. Strong brand and R&D capabilities provide resilience, though cyclical demand in auto and industrial sectors can impact margins.
📉 Entry Zone: RSI at 49.0 suggests neutral momentum, while MACD at -9.92 indicates mild bearishness. A potential entry zone could be around ₹3,800–₹3,900 for accumulation. Long-term investors may hold, given strong fundamentals and global positioning, but valuation risks remain elevated.
Positive
- 📈 Strong ROCE (27.9%) and ROE (20.8%).
- 💰 Debt-free balance sheet (Debt-to-equity 0.01).
- 🌍 Global presence with diversified industrial and automotive exposure.
Limitation
- ⚠️ High P/E (51.0) vs industry average (27.0).
- 📉 Elevated P/B ratio (~10.4).
- 🔄 PEG ratio at 4.50, indicating expensive growth.
Company Negative News
- 📉 Decline in FII holding (-0.20%).
- ⚠️ Slight dip in quarterly PAT (328 Cr. to 320 Cr.).
Company Positive News
- 📊 Increase in DII holding (+0.21%).
- 📈 Stock trading above DMA 200 (3,950), showing long-term strength.
Industry
- 💹 Industry PE at 27.0, much lower than SCHAEFFLER’s 51.0.
- ⚡ Auto component and industrial machinery demand expanding globally.
- 🏦 Strong OEM partnerships driving sector growth.
Conclusion
⚖️ SCHAEFFLER is a fundamentally strong, debt-free global player with robust returns and technological leadership. However, valuations are stretched, limiting near-term upside. Entry may be considered around ₹3,800–₹3,900 for long-term investors, with confidence in its global positioning and innovation-driven business model.
For deeper insights, you could explore SCHAEFFLER peer comparison or a technical chart analysis to complement this fundamental view.