SCHAEFFLER - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

Technical Analysis Report for Schaeffler India Ltd (SCHAEFFLER)

• Trend Status: Consolidating near short-term support
• Moving Averages: Price is slightly above 50 DMA (₹4,006) and 200 DMA (₹3,857) — mildly bullish structure
• RSI: 52.1 — neutral zone, no strong directional bias
• MACD: Negative at -34.3 — bearish crossover, indicating weakening momentum
• Bollinger Bands: Price near mid-band — suggests range-bound movement
• Volume: Slightly above weekly average — moderate interest, not yet breakout strength

Entry & Exit Zones

• Support Levels: ₹3,857 (DMA 200), ₹3,800 (trendline), ₹3,720 (recent swing low)
• Resistance Levels: ₹4,100 (minor resistance), ₹4,250 (supply zone), ₹4,393 (52-week high)
• Optimal Entry: ₹3,850–₹3,900 (on pullback confirmation)
• Optimal Exit: ₹4,250–₹4,390 (near resistance zone)

Positive

• Strong ROCE (25.7%) and ROE (19.2%) — excellent capital efficiency
• EPS of ₹67.7 — robust earnings base
• Debt-to-equity ratio of 0.01 — virtually debt-free

Limitation

• MACD negative — weakening momentum
• High P/E of 59.5 vs industry average of 32.6 — premium valuation
• PEG ratio of 3.76 — expensive on growth-adjusted basis

Company Negative News

• FII holding declined by 0.11% — slight foreign investor pullback

Company Positive News

• DII holding increased by 0.16% — domestic institutional support
• Quarterly PAT improved from ₹265 Cr. to ₹296 Cr. — consistent earnings growth

Industry

• Auto components sector — cyclical with long-term demand from EV and mobility trends
• Industry P/E of 32.6 — Schaeffler trades at a significant premium

Conclusion

Schaeffler India Ltd is currently consolidating near its short-term support levels. While fundamentals are strong and volume is stable, technical indicators like MACD suggest caution. Traders may consider entries near ₹3,850 with exits around ₹4,390, keeping an eye on momentum recovery and institutional flows.