SCHNEIDER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Let’s decode Schneider Electric Infrastructure (SCHNEIDER) — a strong player in energy management and power distribution, surging on operational leverage and sectoral tailwinds ⚡🏗️

📘 Financial Performance & Returns

Profit Momentum

PAT surged from ₹97.3 Cr. to ₹54.6 Cr. (note: this indicates a QoQ decline), yet the Qtr Profit Variation is 1,607%, suggesting powerful YoY recovery, likely from a loss-making or low base.

EPS: ₹11.2, reflecting improved operational scalability.

Return Metrics

ROE: 65.8%, ROCE: 39.7% — exceptionally high, indicating fantastic capital efficiency.

Debt-to-Equity: 0.93 — moderate leverage; comfortable but must be tracked.

💸 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 94.2 Richly valued; premium vs. industry PE of 55.2

P/B Ratio ~42.6 Stretched above fundamentals

PEG Ratio 0.91 Acceptable — growth justifies valuation to an extent

Intrinsic Value ~₹850–₹900 Currently overvalued relative to fair range

🟥 Price reflects future growth expectations. Market likely pricing in sustained capex cycle, digital infra demand, and improved margins.

🔌 Business Model & Strategic Positioning

Core offerings in medium voltage power distribution, smart grids, and substation equipment.

Riding on India’s energy infra push — renewables, transmission modernization, and smart city projects.

Operates under Schneider Electric’s global umbrella — benefits from tech edge and brand credibility.

FII holding marginally up (+0.10%), DII trimmed (-0.25%) — mixed institutional sentiment, possibly profit booking after a strong run.

📉 Technical Trends & Entry Zone

RSI: 77.0 — overbought zone; caution warranted.

MACD: +46.3 — strong bullish momentum.

Price trades well above DMA 50 (₹831) and DMA 200 (₹740) — momentum intact.

🎯 Suggested Entry Zone

Wait for correction toward ₹850–₹900 for a safer entry.

Avoid entry near current highs unless pursuing momentum strategy.

⏳ Long-Term Holding Perspective

✅ Strong ROE/ROCE, sectoral growth triggers, brand edge

⚠️ Lofty valuation and short-term price overheating

🟢 Ideal for long-term portfolios aligned to infrastructure, green energy, and industrial automation

Want me to compare SCHNEIDER against peers like ABB India, Siemens, or CG Power on metrics like ROE, earnings growth, and valuations? That matrix could be electric ⚙️🔍

Edit in a page