SCHNEIDER - Investment Analysis

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

Investment Rating: 4.2

📊 Fundamental Analysis

Strengths

Outstanding ROE (65.8%) & ROCE (39.7%): Indicates exceptional capital efficiency and profitability — top-tier metrics.

PEG Ratio (0.91): Suggests valuation is reasonable relative to growth — a green flag for long-term investors.

Strong EPS (₹11.2): Solid earnings base for a mid-cap industrial player.

Quarterly Profit Surge (1,607%): Massive YoY growth — signals strong operational turnaround.

Technically Bullish

Price well above both 50 DMA (₹831) and 200 DMA (₹740) — strong uptrend.

MACD positive (46.3): Momentum favors upside.

RSI at 77.0: Overbought — signals short-term caution but confirms strength.

Concerns

Very High P/E (94.2) vs Industry (55.2): Valuation is steep — priced for aggressive growth.

Zero Dividend Yield: Not suitable for income-focused investors.

Decline in PAT: From ₹97.3 Cr to ₹54.6 Cr — needs monitoring for consistency.

High Debt-to-Equity (0.93): Acceptable, but leverage should be watched.

DII Selling (−0.25%): Slight reduction in domestic institutional interest.

💡 Is It a Good Long-Term Investment?

Yes — with valuation discipline. Schneider Electric Infra is a high-growth, capital-efficient player in the energy and automation space. Its PEG ratio and return metrics support a long-term thesis, but the current valuation demands caution.

🎯 Ideal Entry Price Zone

Fair Value Zone: ₹850–₹900 This range offers a better margin of safety and aligns with the 50 DMA.

Aggressive Entry: ₹750–₹800 Near the 200 DMA — ideal for long-term accumulation during market dips.

🧭 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: 3–5 years to benefit from compounding ROE and sectoral tailwinds.

Exit Strategy

Partial Exit near ₹1,050–₹1,100 if valuation stretches further without earnings support.

Full Exit if PEG rises above 1.5 or ROE drops below 30%.

Re-evaluate if RSI crosses 80 or MACD turns sharply negative — could signal short-term peak.

Would you like a comparison with peers like ABB India or Siemens to assess competitive positioning and valuation dynamics?

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