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SCHNEIDER - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.7

Last Updated Time : 04 May 26, 11:42 am

Fundamental Rating: 3.7

Stock Code SCHNEIDER Market Cap 29,737 Cr. Current Price 1,244 ₹ High / Low 1,250 ₹
Stock P/E 114 Book Value 27.5 ₹ Dividend Yield 0.00 % ROCE 40.9 %
ROE 74.0 % Face Value 2.00 ₹ DMA 50 965 ₹ DMA 200 838 ₹
Chg in FII Hold 0.16 % Chg in DII Hold 0.79 % PAT Qtr 114 Cr. PAT Prev Qtr 52.3 Cr.
RSI 77.0 MACD 80.4 Volume 2,69,122 Avg Vol 1Wk 2,22,670
Low price 517 ₹ High price 1,250 ₹ PEG Ratio 1.10 Debt to equity 0.80
52w Index 99.1 % Qtr Profit Var 16.6 % EPS 10.2 ₹ Industry PE 37.9

📊 SCHNEIDER demonstrates exceptional efficiency metrics with ROCE (40.9%) and ROE (74.0%), reflecting strong capital utilization and shareholder returns. EPS of ₹10.2 supports earnings visibility, and quarterly PAT growth (+16.6%) highlights operational strength. However, valuations are extremely stretched with P/E (114) far above industry average (37.9), and debt-to-equity (0.80) adds moderate financial risk. Current price ₹1,244 is at its 52-week high, suggesting limited immediate upside. Entry zone is attractive near ₹1,050–1,100 for long-term investors seeking margin of safety.

💡 Long-term investors may hold with a 3–5 year horizon, given strong fundamentals, but should monitor valuation multiples closely. Exit strategy: partial profit booking near ₹1,250–1,280 or full exit if ROE/ROCE weaken or debt rises further.

Positive

  • 📈 Strong ROCE (40.9%) and ROE (74.0%).
  • 💰 EPS of ₹10.2 supports earnings visibility.
  • 📊 PAT growth (+16.6% QoQ) highlights operational strength.

Limitation

  • ⚠️ Extremely high P/E (114 vs industry 37.9) indicates overvaluation.
  • 📉 Debt-to-equity ratio of 0.80 adds moderate financial risk.
  • 📊 Dividend yield of 0.00% offers no passive income.

Company Negative News

  • 📉 Valuation concerns due to stretched multiples.
  • 📊 RSI at 77.0 indicates overbought conditions.

Company Positive News

  • 📈 DII holding increased (+0.79%), reflecting domestic institutional support.
  • 📊 FII holding increased (+0.16%), showing foreign investor confidence.
  • 📊 Technicals: MACD positive (80.4), volume above weekly average, showing strong momentum.

Industry

  • 🏭 Industry PE at 37.9 is much lower than SCHNEIDER’s 114, highlighting premium valuation.
  • ⚡ Electrical equipment sector benefits from infrastructure growth and renewable energy adoption.

Conclusion

⚖️ SCHNEIDER is a fundamentally strong company with outstanding ROCE and ROE, but trades at extremely high valuations. Ideal entry is near ₹1,050–1,100. Long-term investors may hold for 3–5 years, but cautious monitoring of valuation and debt metrics is essential. Exit near ₹1,250–1,280 or on deterioration of profitability metrics.

This structured HTML report captures SCHNEIDER’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a sector overlay benchmarking SCHNEIDER against Havells, ABB India, and Siemens to highlight relative valuation and efficiency positioning in the electrical equipment sector?

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