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SCHAEFFLER - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.4

Stock Code SCHAEFFLER Market Cap 63,779 Cr. Current Price 4,083 ₹ High / Low 4,468 ₹
Stock P/E 51.0 Book Value 393 ₹ Dividend Yield 0.86 % ROCE 27.9 %
ROE 20.8 % Face Value 2.00 ₹ DMA 50 4,058 ₹ DMA 200 3,950 ₹
Chg in FII Hold -0.20 % Chg in DII Hold 0.21 % PAT Qtr 320 Cr. PAT Prev Qtr 328 Cr.
RSI 49.0 MACD -9.92 Volume 24,338 Avg Vol 1Wk 57,513
Low price 3,518 ₹ High price 4,468 ₹ PEG Ratio 4.50 Debt to equity 0.01
52w Index 59.5 % Qtr Profit Var 20.5 % EPS 80.0 ₹ Industry PE 27.0

📈 Chart & Trend Analysis

  • Moving Averages: Current price (₹4,083) is above both 50 DMA (₹4,058) and 200 DMA (₹3,950), confirming bullish momentum.
  • RSI: At 49.0, the stock is neutral, neither overbought nor oversold.
  • MACD: Negative (-9.92), suggesting mild bearish divergence despite price strength.
  • Bollinger Bands: Price is near the mid-band, indicating consolidation.
  • Volume Trends: Current volume (24,338) is below 1-week average (57,513), showing weak participation.

📊 Momentum & Signals

  • Short-term momentum: Neutral, with price holding above moving averages but MACD showing weakness.
  • Support Zone: ₹4,050 – ₹4,070 (near-term support).
  • Resistance Zone: ₹4,150 – ₹4,200 (recent highs and psychological barrier).
  • Entry Zone: ₹4,060 – ₹4,090 (near support, cautious entry).
  • Exit Zone: ₹4,150 – ₹4,200 (resistance levels).

📉 Trend Status

The stock is currently in a consolidation phase with price strength above moving averages but weak MACD signals. A breakout above ₹4,200 could confirm continuation of the uptrend.

✅ Positive

  • Strong ROCE (27.9%) and ROE (20.8%) indicate excellent efficiency.
  • Low debt-to-equity ratio (0.01), showing financial stability.
  • EPS of ₹80.0 reflects strong earnings power.
  • Dividend yield of 0.86% provides income stability.

⚠️ Limitation

  • High P/E ratio (51.0) compared to industry average (27.0), making valuation expensive.
  • PEG ratio at 4.50, suggesting costly growth valuation.
  • Volume participation is weak, limiting breakout strength.

📰 Company Negative News

  • PAT declined slightly (₹320 Cr vs ₹328 Cr previous quarter).
  • FII holding decreased (-0.20%), showing reduced foreign investor confidence.

🌟 Company Positive News

  • DII holding increased (+0.21%), reflecting domestic institutional support.
  • Quarterly profit variation (+20.5%) shows strong growth momentum.

🏦 Industry

  • Industry PE at 27.0, much lower than SCHAEFFLER’s 51.0, suggesting peers are cheaper.
  • Auto components sector benefits from global demand recovery and industrial expansion.

📌 Conclusion

SCHAEFFLER is in a consolidation phase with strong fundamentals and price above moving averages but weak MACD signals. Entry near ₹4,060 – ₹4,090 with exit around ₹4,150 – ₹4,200 is optimal for short-term traders. Long-term investors should weigh strong efficiency metrics against high valuations and weak trading volume momentum.

Technical Analysis
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