SCHAEFFLER - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | SCHAEFFLER | Market Cap | 59,813 Cr. | Current Price | 3,825 ₹ | High / Low | 4,393 ₹ |
| Stock P/E | 53.5 | Book Value | 352 ₹ | Dividend Yield | 0.73 % | ROCE | 25.7 % |
| ROE | 19.2 % | Face Value | 2.00 ₹ | DMA 50 | 3,795 ₹ | DMA 200 | 3,850 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.02 % | PAT Qtr | 307 Cr. | PAT Prev Qtr | 296 Cr. |
| RSI | 58.2 | MACD | -23.1 | Volume | 81,666 | Avg Vol 1Wk | 67,544 |
| Low price | 2,823 ₹ | High price | 4,393 ₹ | PEG Ratio | 3.38 | Debt to equity | 0.01 |
| 52w Index | 63.8 % | Qtr Profit Var | 24.1 % | EPS | 71.5 ₹ | Industry PE | 28.7 |
📊 SCHAEFFLER shows moderate potential for swing trading. The current price (3,825 ₹) is close to both the 50 DMA (3,795 ₹) and 200 DMA (3,850 ₹), indicating consolidation. RSI at 58.2 suggests neutral-to-positive momentum, while MACD (-23.1) reflects short-term weakness. Fundamentals are strong with ROCE (25.7%) and ROE (19.2%), but the high P/E (53.5 vs industry PE of 28.7) and PEG ratio (3.38) raise valuation concerns. Quarterly PAT improved slightly (296 Cr. to 307 Cr.), showing steady growth, though institutional holdings declined marginally.
💡 Optimal Entry Price: Around 3,750–3,800 ₹ (near DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 4,200–4,300 ₹ (resistance zone close to 52-week high) or if RSI crosses 65 with weakening momentum.
✅ Positive
- Strong ROCE (25.7%) and ROE (19.2%) indicate efficient capital use.
- EPS of 71.5 ₹ supports earnings visibility.
- Debt-to-equity ratio of 0.01 shows virtually no leverage risk.
- Quarterly PAT growth (24.1%) highlights operational strength.
⚠️ Limitation
- High P/E of 53.5 compared to industry PE of 28.7 suggests overvaluation.
- MACD remains negative, signaling weak short-term momentum.
- Dividend yield of 0.73% is modest.
- Institutional holdings declined slightly (FII -0.01%, DII -0.02%).
📉 Company Negative News
- Valuation concerns due to high P/E and PEG ratio (3.38).
- Weak technical indicators (negative MACD).
📈 Company Positive News
- Quarterly PAT improved from 296 Cr. to 307 Cr.
- Strong efficiency ratios (ROCE and ROE).
- Debt-free balance sheet enhances financial resilience.
🏭 Industry
- Industry PE at 28.7 vs SCHAEFFLER’s 53.5 highlights premium valuation.
- Auto components sector remains cyclical but benefits from global demand recovery.
🔎 Conclusion
SCHAEFFLER is a moderately attractive swing trade candidate. Entry near 3,750–3,800 ₹ offers a favorable risk-reward setup, with exit targets around 4,200–4,300 ₹. Strong fundamentals and profit growth support the stock, but high valuations and weak technical momentum suggest cautious trading. Best suited for traders monitoring resistance levels and momentum closely.