⚠ 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.
SCHNEIDER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | SCHNEIDER | Market Cap | 21,443 Cr. | Current Price | 900 ₹ | High / Low | 1,055 ₹ |
| Stock P/E | 81.9 | Book Value | 27.5 ₹ | Dividend Yield | 0.00 % | ROCE | 40.9 % |
| ROE | 74.0 % | Face Value | 2.00 ₹ | DMA 50 | 821 ₹ | DMA 200 | 784 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.00 % | PAT Qtr | 114 Cr. | PAT Prev Qtr | 52.3 Cr. |
| RSI | 58.0 | MACD | 28.2 | Volume | 80,907 | Avg Vol 1Wk | 92,044 |
| Low price | 517 ₹ | High price | 1,055 ₹ | PEG Ratio | 0.79 | Debt to equity | 0.80 |
| 52w Index | 71.2 % | Qtr Profit Var | 16.6 % | EPS | 10.2 ₹ | Industry PE | 33.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹52.3 Cr. to ₹114 Cr. (16.6% growth YoY).
- Margins: ROE at 74.0% and ROCE at 40.9% → exceptional efficiency.
- Debt: Debt-to-equity ratio of 0.80 → moderately high leverage.
- Cash Flow: Strong, supported by rising profitability.
- Return Metrics: EPS at ₹10.2, showing consistent earnings power.
💹 Valuation Indicators
- P/E Ratio: 81.9 vs Industry PE of 33.0 → highly overvalued.
- P/B Ratio: Price ₹900 / Book Value ₹27.5 ≈ 32.7.
- PEG Ratio: 0.79 → valuation expensive but supported by growth.
- Intrinsic Value: Current valuation stretched, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in electrical equipment and energy management solutions.
- Competitive advantage lies in strong brand presence and diversified product portfolio.
- High ROE and ROCE reflect strong operational efficiency.
- Challenges include high valuation and moderate debt levels.
📈 Entry Zone Recommendation
- Technicals: RSI at 58.0 (neutral to slightly overbought), MACD positive, price above 50DMA (821) and 200DMA (784).
- Entry Zone: Attractive accumulation near ₹850–880 for long-term investors.
- Holding Guidance: Suitable for long-term holding given strong fundamentals, but valuation risk persists.
✅ Positive
- Exceptional ROE (74.0%) and ROCE (40.9%).
- Quarterly PAT growth of 16.6% YoY.
- Strong technical momentum with MACD positive.
⚠️ Limitation
- High P/E (81.9) compared to industry average (33.0).
- High P/B ratio (32.7).
- No dividend yield (0.00%).
- Debt-to-equity ratio moderately high (0.80).
📉 Company Negative News
- FII holdings decreased (-0.06%).
- DII holdings flat (0.00%).
- Stock corrected from ₹1,055 to ₹900.
📈 Company Positive News
- Quarterly PAT improved to ₹114 Cr.
- Strong ROE and ROCE highlight operational efficiency.
- MACD positive, showing bullish technical momentum.
🌐 Industry
- Electrical equipment industry benefits from infrastructure growth and energy efficiency demand.
- Industry PE at 33.0 indicates sector trades at lower valuations compared to SCHNEIDER.
- Government focus on renewable energy and electrification supports long-term opportunities.
🔎 Conclusion
- SCHNEIDER shows excellent fundamentals with strong profitability and efficiency.
- Valuations are stretched, limiting near-term upside.
- Best considered for long-term investors with entry near ₹850–880; holding depends on sustained earnings growth and debt management.