Schaeffler India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Schaeffler India's management has articulated a confident outlook, emphasizing agility in navigating geopolitical and supply chain challenges while focusing on market share expansion in automotive technologies. The company's strategic investments, particularly in localization and E-Mobility, are expected to drive revenue growth despite current industry softness in certain segments. Vista's financial outlook reflects a moderate revenue growth trajectory, supported by stable margins and a fair valuation aligned with intrinsic value. The improving pricing power within the forgings and castings industry, coupled with strong demand from key sectors, underpins this forecast. However, potential supply chain disruptions and rising raw material costs present headwinds that could impact margins. Over the next 12-24 months, Schaeffler India is well-positioned to capitalize on growth opportunities in the automotive sector, particularly with government incentives for EVs and infrastructure investments. Key watchpoints include the resolution of capacity constraints and the management of working capital to support ongoing demand. Overall, the combination of strategic initiatives and favorable market conditions supports Vista's positive investment outlook for Schaeffler India
Why We Like This Stock
- Management's focus on localization and E-Mobility positions the company to capture growth in the automotive sector
- Improving pricing power in the forgings and castings industry enhances profitability potential
- Strong demand from key sectors, supported by government incentives and infrastructure investments, underpins revenue growth
Things To Watch Out For
- Potential supply chain disruptions could hinder production capabilities
- Rising raw material costs may pressure profit margins
- Global economic uncertainties and inflationary pressures could temper demand in cyclical sectors
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,226 | 8,076 | 9,395 | 10,055 | 10,906 |
| Profit Before Tax (Cr.) | 1,226 | 1,317 | 1,612 | 1,745 | 1,887 |
| PBT Margin | 17.0% | 16.3% | 17.2% | 17.4% | 17.3% |
| Net Profit (Cr.) | 911 | 978 | 1,186 | 1,279 | 1,383 |
| Earnings Per Share | 58.2 | 62.5 | 75.8 | 81.7 | 88.4 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Schaeffler India Limited engages in the development, manufacture, and distribution of high-precision roller and ball bearings, and related components in India and internationally. The company operates in two segments, Mobility Components and Related Solutions; and Others. It offers ball, plain, and roller bearings; linear guidance systems; cylindrical, spherical, needle, and tapered roller bearings; mounting and dismounting products; and lubrication, alignment, and condition monitoring products, as well as wheel bearings. The company also provides mechatronic products; release system, timing drive, front end auxiliary drive, steering and suspension, wheel bearing, cooling, dampers, valve train, flywheels; and clutch systems for passenger cars, light commercial vehicles, heavy commercial vehicles, and tractors; assembly machines, testing systems, handling technology, machining centers, digitalization services, robotics, and vision systems; and concentric slave cylinder, clutch master cylinder, semi slave cylinder, adapter, and high-pressure pipe assemblies. In addition, it offers engine, gear, chassis, transmission, grease, coolant, hydraulic, and shock absorber oil; spare part solutions; and maintenance, repair, and digital services. The company offers its products under the Schaeffler, LuK, INA, FAG, and Schaeffler TruPower brands. It serves aerospace, productronics, food, beverage and packaging, medical equipment, printing machinery, robotics, construction machinery, agriculture, pneumatic, industrial transmission, fluid, electric motors, rail, wind, water, solar, mining and processing, metallurgical production and processing, and textile machinery, as well as machine tools, two-wheelers, power transmission, raw material, paper, and pulp industries. The company was formerly known as FAG Bearings India Limited and changed its name to Schaeffler India Limited in July 2017. Schaeffler India Limited was incorporated in 1962 and is based in Pune, India.