SCHNEIDER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | SCHNEIDER | Market Cap | 31,298 Cr. | Current Price | 1,308 ₹ | High / Low | 1,395 ₹ |
| Stock P/E | 120 | Book Value | 27.5 ₹ | Dividend Yield | 0.00 % | ROCE | 40.9 % |
| ROE | 74.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,114 ₹ | DMA 200 | 902 ₹ |
| Chg in FII Hold | 0.16 % | Chg in DII Hold | 0.79 % | PAT Qtr | 114 Cr. | PAT Prev Qtr | 52.3 Cr. |
| RSI | 60.4 | MACD | 62.7 | Volume | 2,23,881 | Avg Vol 1Wk | 1,92,754 |
| Low price | 572 ₹ | High price | 1,395 ₹ | PEG Ratio | 1.16 | Debt to equity | 0.80 |
| 52w Index | 89.4 % | Qtr Profit Var | 16.6 % | EPS | 10.2 ₹ | Industry PE | 35.3 |
📊 Financials: SCHNEIDER has a market cap of ₹31,298 Cr. Quarterly PAT rose from ₹52.3 Cr. to ₹114 Cr. (16.6% growth), showing strong profitability momentum. ROE at 74.0% and ROCE at 40.9% reflect exceptional efficiency. Debt-to-equity ratio of 0.80 indicates moderate leverage. EPS at ₹10.2 is modest relative to valuation multiples, but cash flows remain supported by operational strength.
💹 Valuation: Current P/E of 120 is far above the industry average of 35.3, suggesting significant overvaluation. P/B ratio (~47.5) is extremely high compared to book value ₹27.5. PEG ratio at 1.16 indicates growth is priced expensively but not unsustainably. Intrinsic value appears lower than CMP ₹1,308, limiting near-term upside.
🏦 Business Model: SCHNEIDER operates in electrical equipment and energy management solutions, with strong exposure to infrastructure and industrial demand. Its competitive advantage lies in brand strength, innovation, and diversified product offerings. However, high valuations and reliance on cyclical demand pose risks.
📉 Entry Zone: RSI at 60.4 suggests mildly overbought conditions, while MACD at 62.7 indicates bullish momentum. A potential entry zone could be around ₹1,150–₹1,200 for accumulation. Long-term investors may hold, given strong fundamentals, but valuation risks remain elevated.
Positive
- 📈 Strong ROCE (40.9%) and ROE (74.0%).
- ⚡ Leadership in electrical and energy management solutions.
- 📊 PAT growth from ₹52.3 Cr. to ₹114 Cr.
Limitation
- ⚠️ Extremely high P/E (120) vs industry average (35.3).
- 📉 Elevated P/B ratio (~47.5).
- 🔄 Moderate leverage with debt-to-equity at 0.80.
Company Negative News
- 📉 Decline in FII holding (-0.20%).
Company Positive News
- 📊 Increase in DII holding (+0.79%).
- 📈 Strong quarterly PAT growth (16.6%).
Industry
- 💹 Industry PE at 35.3, much lower than SCHNEIDER’s 120.
- ⚡ Electrical equipment demand supported by infrastructure growth.
- 🏦 Strong competition from global and domestic players.
Conclusion
⚖️ SCHNEIDER is a fundamentally strong company with exceptional return metrics and leadership in energy management solutions. However, valuations are stretched, limiting near-term upside. Entry may be considered around ₹1,150–₹1,200 for long-term investors, but caution is advised due to high multiples and cyclical risks.
For deeper insights, you could explore SCHNEIDER peer comparison or a technical chart analysis to complement this fundamental view.