⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

SCHAEFFLER - Swing Trade Analysis with AI Signals

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Rating: 4.1

Last Updated Time : 05 May 26, 04:34 pm

📊 Swing Trade Rating: 4.1

Stock Code SCHAEFFLER Market Cap 65,266 Cr. Current Price 4,174 ₹ High / Low 4,468 ₹
Stock P/E 52.2 Book Value 393 ₹ Dividend Yield 0.84 % ROCE 27.9 %
ROE 20.8 % Face Value 2.00 ₹ DMA 50 4,032 ₹ DMA 200 3,927 ₹
Chg in FII Hold -0.20 % Chg in DII Hold 0.21 % PAT Qtr 320 Cr. PAT Prev Qtr 328 Cr.
RSI 53.9 MACD 78.9 Volume 1,86,139 Avg Vol 1Wk 1,77,694
Low price 3,403 ₹ High price 4,468 ₹ PEG Ratio 4.61 Debt to equity 0.01
52w Index 72.4 % Qtr Profit Var 20.5 % EPS 80.0 ₹ Industry PE 27.6

Analysis: SCHAEFFLER shows strong fundamentals and technical momentum. Current price (₹4,174) is above both 50 DMA (₹4,032) and 200 DMA (₹3,927), confirming bullish trend support. RSI at 53.9 indicates neutral momentum, while MACD at 78.9 suggests positive short-term momentum. ROCE (27.9%) and ROE (20.8%) are excellent, reflecting strong operational efficiency. However, high P/E (52.2 vs Industry PE 27.6) and PEG ratio (4.61) indicate expensive valuation. Quarterly PAT is stable (₹320 Cr. vs ₹328 Cr.), showing resilience despite minor decline.

Optimal Entry Price: ₹4,050–₹4,100, near 50 DMA support.

Exit Strategy: If already holding, consider booking profits near ₹4,400–₹4,450 resistance, or exit if price falls below ₹4,000.

✅ Positive

  • Excellent ROCE (27.9%) and ROE (20.8%) show strong efficiency.
  • Debt-to-equity ratio at 0.01 indicates negligible leverage risk.
  • Price trading above both 50 DMA and 200 DMA confirms bullish momentum.
  • Quarterly profit variation (+20.5%) shows growth stability.

⚠️ Limitation

  • High valuation with P/E 52.2 compared to industry PE 27.6.
  • PEG ratio (4.61) suggests limited growth relative to valuation.
  • Minor decline in quarterly PAT (₹328 Cr. to ₹320 Cr.).

📉 Company Negative News

  • FII holdings decreased (-0.20%), showing reduced foreign investor confidence.
  • Stock trading close to upper range may face resistance near highs.

📈 Company Positive News

  • DII holdings increased (+0.21%), reflecting domestic institutional support.
  • EPS at ₹80.0 indicates strong earnings power.
  • Dividend yield at 0.84% provides investor returns alongside growth.

🏭 Industry

  • Industry PE at 27.6, much lower than SCHAEFFLER’s PE (52.2), showing premium valuation.
  • Sector stability supports medium-term swing opportunities.

🔎 Conclusion

SCHAEFFLER is a strong swing trade candidate with excellent fundamentals and bullish technicals. Entry near ₹4,050–₹4,100 offers a safer margin, while exit should be targeted around ₹4,400–₹4,450 resistance. Caution is advised due to high valuation, but strong efficiency and institutional support make it attractive for short-term momentum trades.

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