SCHAEFFLER - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📈 Chart & Trend Analysis:

SCHAEFFLER is trading at ₹3,850, below its 50 DMA (₹3,949) and 200 DMA (₹3,887), showing short-term weakness. RSI at 37.8 indicates the stock is approaching oversold territory, suggesting potential rebound opportunities. MACD at -55.4 is negative, confirming bearish momentum. Price is mid-range between its 52-week high (₹4,393) and low (₹2,823). Bollinger Bands show price leaning toward the lower band, reflecting downside pressure. Current volume (38k) is slightly above the weekly average (36k), showing moderate activity.

🔑 Momentum Signals:

- RSI near 38 suggests oversold conditions, potential for short-term bounce.

- MACD negative, confirming bearish undertone.

- Price below both DMAs signals weakness.

- Slightly higher volume indicates cautious participation.

🎯 Entry & Exit Zones:

- Support: ₹3,800 – ₹3,820 (near recent lows).

- Resistance: ₹3,950 – ₹4,000 (near 50 DMA).

- Optimal Entry: ₹3,820 – ₹3,850 range for rebound trades.

- Exit/Profit Booking: ₹3,950 – ₹4,000 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with bearish undertones. Oversold RSI may trigger a short-term relief rally, but sustained strength requires price to move above 50 DMA.

Positive

• Strong ROCE (25.7%) and ROE (19.2%) highlight operational efficiency.
• EPS at ₹71.5 reflects solid earnings base.
• Quarterly PAT improved to ₹307 Cr from ₹296 Cr.
• Debt-to-equity ratio at 0.01 ensures financial stability.
• Dividend yield at 0.74% provides modest income return.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish momentum.
• High P/E ratio (53.8) compared to industry average (30.0).
• PEG ratio at 3.40 indicates expensive valuation relative to growth.

Company Negative News

• FII holdings reduced (-0.11%), showing weaker foreign investor confidence.
• Stock struggling near support zones, reflecting short-term weakness.

Company Positive News

• DII holdings increased (+0.16%), showing domestic investor support.
• Quarterly PAT growth of 24.1% YoY indicates improving profitability.
• Stock trading well above its 52-week low (₹2,823), showing resilience.

Industry

• Industry P/E at 30.0, SCHAEFFLER trades at a premium valuation.
• Auto components sector showing cyclical recovery.
• Peers trade at lower multiples, SCHAEFFLER commands premium due to strong fundamentals.

Conclusion

⚖️ SCHAEFFLER is consolidating with bearish undertones. Entry near ₹3,820–₹3,850 offers rebound potential, while resistance at ₹3,950–₹4,000 is critical for trend reversal. Strong fundamentals support medium-term stability, but stretched valuations and weak technicals warrant cautious positioning.