⚠ 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 | 16,757 Cr. | Current Price | 701 ₹ | High / Low | 1,055 ₹ |
| Stock P/E | 68.3 | Book Value | 27.5 ₹ | Dividend Yield | 0.00 % | ROCE | 40.9 % |
| ROE | 74.0 % | Face Value | 2.00 ₹ | DMA 50 | 700 ₹ | DMA 200 | 757 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.00 % | PAT Qtr | 52.3 Cr. | PAT Prev Qtr | 41.2 Cr. |
| RSI | 56.6 | MACD | -9.02 | Volume | 3,65,625 | Avg Vol 1Wk | 5,17,560 |
| Low price | 517 ₹ | High price | 1,055 ₹ | PEG Ratio | 0.66 | Debt to equity | 0.80 |
| 52w Index | 34.3 % | Qtr Profit Var | -3.59 % | EPS | 10.8 ₹ | Industry PE | 35.4 |
📊 Core Financials
- Quarterly PAT at 52.3 Cr vs 41.2 Cr previously, showing sequential growth but YoY decline (-3.59%).
- ROE at 74.0% and ROCE at 40.9% reflect exceptional capital efficiency.
- Debt-to-equity ratio at 0.80 indicates moderate leverage, manageable but worth monitoring.
- EPS at 10.8 ₹ provides a reasonable earnings base, supported by strong margins.
💹 Valuation Indicators
- P/E ratio: 68.3, much higher than industry average of 35.4, suggesting overvaluation.
- P/B ratio: ~25.5 (701 ₹ / 27.5 ₹ book value), showing extreme premium pricing.
- PEG ratio: 0.66, indicating valuation is expensive but growth-adjusted risk is moderate.
- Intrinsic value appears lower than current price, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Schneider Electric Infrastructure operates in power distribution and energy management solutions.
- Competitive advantage lies in global brand strength, advanced technology, and strong presence in India’s power sector.
- Exposure to renewable energy and smart grid solutions provides long-term growth opportunities.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 670–700 ₹ range (near 50 DMA support at 700 ₹).
- Long-term holding viable for investors seeking exposure to energy infrastructure growth.
- Accumulation should be cautious due to stretched valuations and moderate debt levels.
Positive
- Exceptional ROE (74.0%) and ROCE (40.9%).
- Strong global brand and technology leadership.
- Exposure to renewable energy and smart grid demand.
Limitation
- High P/E (68.3) compared to industry average (35.4).
- Very high P/B ratio (~25.5), indicating extreme premium valuation.
- Dividend yield at 0.00%, no income return for investors.
Company Negative News
- FII holdings decreased (-0.06%), showing reduced foreign investor confidence.
- Stock trading below 200 DMA (757 ₹), reflecting medium-term weakness.
Company Positive News
- Sequential PAT growth (52.3 Cr vs 41.2 Cr).
- Strong operational efficiency reflected in high ROE and ROCE.
Industry
- Industry PE at 35.4, much lower than Schneider’s 68.3, highlighting sector undervaluation relative to Schneider.
- Power distribution and energy management sector expected to grow steadily with infrastructure and renewable demand.
Conclusion
- Schneider Electric Infrastructure is fundamentally strong with exceptional returns and global brand strength.
- Valuations remain stretched, making accumulation near 670–700 ₹ more attractive.
- Best suited for long-term investors seeking exposure to energy infrastructure growth, but caution advised due to premium valuations and moderate debt.
I can also extend this into a peer comparison with ABB India and Siemens to highlight how Schneider stacks up in valuation and profitability. Would you like me to draft that next?