Schaeffler India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Schaeffler India's management has articulated a positive outlook, driven by strategic investments aimed at localization and capturing new opportunities in the E-Mobility sector. The planned investment of ₹3,836 million is expected to enhance operational capabilities and support revenue growth, particularly in automotive technologies and aftermarket solutions. Despite a backdrop of global uncertainties and industrial softness in Europe, the company is well-positioned to benefit from India's robust economic growth and infrastructure development. Vista's financial outlook reflects moderate revenue growth expectations, with stable margins supported by effective capital allocation and operational efficiencies. The anticipated demand in sectors such as Railways and engineering goods further underpins this outlook. However, challenges such as rising inflation and geopolitical tensions could impact performance. Over the next 12-24 months, key opportunities include expanding market share through new product launches and digital solutions, while watchpoints include managing working capital and navigating external economic pressures
Why We Like This Stock
- Significant planned investments in localization and E-Mobility are expected to drive revenue growth
- Sustained double-digit growth in Automotive Technologies and Vehicle Lifetime Solutions indicates strong market demand
- Strategic focus on operational efficiency and capital discipline supports stable margins
Things To Watch Out For
- Global uncertainties and industrial softness in Europe may pose risks to revenue growth
- Rising inflation and geopolitical tensions could impact operational performance
- Increasing working capital requirements to meet demand may affect free cash flow generation
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,226 | 8,076 | 9,395 | 10,067 | 11,098 |
| Profit Before Tax (Cr.) | 1,226 | 1,317 | 1,612 | 1,783 | 1,950 |
| PBT Margin | 17.0% | 16.3% | 1715.8% | 17.7% | 17.6% |
| Net Profit (Cr.) | 911 | 978 | 1,186 | 1,306 | 1,429 |
| Earnings Per Share | 58.2 | 62.5 | 75.8 | 83.5 | 91.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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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.