SCHAEFFLER - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📉 Current Price: ₹4,165

📊 Optimal Entry Price: ₹4,050–4,080 (near 50 DMA support)

📈 Suggested Exit (if holding): ₹4,350–4,390 (near 52-week high resistance)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 25.7% and ROE at 19.2% reflect efficient capital deployment
• 📉 Low Debt: Debt-to-equity ratio of 0.01 shows excellent financial health
• 📊 MACD Positive: 4.49 indicates bullish momentum
• 📈 Consistent Profit Growth: PAT increased from ₹296 Cr to ₹307 Cr QoQ
• 📈 Above DMA Levels: Price trading above both 50 DMA and 200 DMA supports trend continuation

⚠️ Limitation

• 📉 High P/E: 58.3 vs industry average of 32.8 suggests overvaluation
• 📉 Elevated PEG Ratio: 3.68 implies expensive valuation relative to growth
• 📉 RSI at 56.3: Neutral zone, limited upside without fresh trigger
• 📉 Volume Flat: Current volume (2.74L) only slightly above 1-week average

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 0.11%

✅ Company Positive News

• 📈 Q2FY26 Results: Net profit up 3.7% QoQ, revenue up 6.3%
• 🔧 EV Segment Expansion: Increased focus on electric mobility and smart components
• 📊 DII Buying: Domestic institutional holding increased by 0.16%

🏭 Industry

• 🚘 Auto Components Sector: Benefiting from EV adoption and premiumization trends
• 📈 Global OEM Demand: Strong order flow from European and Indian manufacturers

🧾 Conclusion

Schaeffler is a solid swing trade candidate with strong fundamentals, bullish technicals, and sector tailwinds. While valuation is rich, its low debt and consistent earnings growth support upside potential. Entry near ₹4,050–4,080 offers a favorable setup, with exit near ₹4,350–4,390. Watch for volume breakout or news catalysts to confirm momentum.

I can chart Schaeffler’s price action with support and resistance zones to help you time your trade more precisely.