SCHNEIDER - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials Analysis

Profitability

ROE of 74.0% and ROCE of 40.9% are exceptionally strong, indicating highly efficient use of capital.

EPS of ₹10.9 is decent, though not aligned with the high valuation.

PAT declined from ₹54.6 Cr to ₹41.2 Cr QoQ, showing a 14.9% drop, which raises short-term concerns.

Balance Sheet Health

Debt-to-equity ratio of 1.27 is high, suggesting elevated financial leverage.

No dividend yield, which may disappoint income-seeking investors.

Cash Flow & Stability

Book Value of ₹20 vs Current Price ₹900 implies a very high P/B ratio (~45) — extreme premium.

PEG ratio of 0.84 suggests reasonable valuation if growth sustains.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 87.0 Extremely high vs industry PE of 49.5

P/B Ratio ~45.0 Indicates aggressive pricing

PEG Ratio 0.84 Fairly valued based on growth

Intrinsic Value ~₹750–₹800 Slightly below current price

The stock is overvalued, but not irrationally so if earnings growth resumes.

⚡ Business Model & Competitive Edge

Sector: Schneider Electric Infrastructure Ltd specializes in power distribution and automation solutions, including Ring Main Units (RMUs), switchgears, and smart grid technologies.

Strengths

Strong brand and global parentage (Schneider Electric SE)

High return metrics and strategic expansion in manufacturing

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Institutional interest remains stable (FII +0.10%)

Risks

High debt load

Declining quarterly profits

No dividend payout

The company benefits from India's infrastructure and electrification push, but its valuation demands consistent execution.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹780–₹820

Near 200 DMA (₹781) and below current price

RSI at 54.4 suggests neutral momentum

MACD positive, indicating mild bullish trend

🧭 Long-Term Holding Guidance

Hold if Already Invested: Strong fundamentals and sector tailwinds support long-term potential.

Wait for Better Entry if New Investor: Valuation is stretched; a dip would offer better margin of safety.

Watchlist Triggers

EPS recovery

Debt reduction

Institutional accumulation

Schneider Electric Infrastructure is a high-quality play in the power distribution space, but its premium pricing calls for patience and precision.

You can explore deeper insights on TopStockResearch’s fundamental dashboard or Trendlyne’s stock report for more granular data.

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