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Schaeffler India Ltd Stock Analysis

Large Cap
Evaluated by 2214 users | BSE: 505790 | NSE: SCHAEFFLER |
Bearings

Schaeffler India encompasses the Indian operations of Schaeffler Group. The post-merger combined entity offers a vast and diversified mix of products to its automotive and industrial customers. Schaeffler India manufactures these products across its four...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Schaeffler India Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20TTM
Return on Capital Employed 27.15%18.66%12.32%15.69%19.08%14.17%21.12%17.67%13.62%9.95%-
Value Creation Index 0.310.24-0.180.050.27-0.060.410.18-0.09NA-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,3091,4471,4021,6321,7241,7963,9334,5624,3613,7624,944
Y-o-Y Gr. Rt.-10.6%-3.1%16.4%5.7%4.2%119%16%-4.4%-13.7%-
Adjusted EPS (Rs.) 105.7589.668.7798.34136.46116.94241.03144.11123.7695.75167.23
Y-o-Y Gr. Rt.--15.3%-23.3%43%38.8%-14.3%106.1%-40.2%-14.1%-22.6%-
Book Value per Share (Rs.) 437.95527.92594.17665.17774.56887.581,390.2865.68947.591,004.571054.44
Adjusted Net Profit 176149114163227194401451387299523
Net Op. Cash Flow (Rs. Cr.) 82.6137162117182193401238510649-
Debt to Cash Flow from Ops 0000000.170.2400-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Schaeffler India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.5%16.9%-1.5%-13.7%
Adjusted EPS -1.1%-6.8%-26.5%-22.6%
Book Value per Share 9.75.3-10.36
Share Price 17.9% 12.3% 10.4% 101.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20TTM
Return on Equity (%) 26.9618.512.2315.5918.9214.0621.0817.9113.659.8116.24
Operating Profit Margin (%) 19.4515.2713.1515.7720.1616.6717.6215.2915.1714.5916.96
Net Profit Margin (%) 13.4310.298.1510.0113.1510.8210.189.888.877.9610.57
Debt to Equity 0000000.030.02000
Working Capital Days 113126148145146149101139154164229
Cash Conversion Cycle 19364238424833546260147
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Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.13%
Institutions 20.57%
Non-Institutions 5.31%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworks4me indicates that Schaeffler India Ltd is a good quality company.

Schaeffler India Ltd's earnings have declined by -6.8%, whereas share price has appreciated 12.3% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Schaeffler India Ltd share price has appreciated 19.7% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that Schaeffler India Ltd is a good long term investment. However, you need to ensure you buy at a right price to earn good returns.

Schaeffler India encompasses the Indian operations of Schaeffler Group. The post-merger combined entity offers a vast and diversified mix of products to its automotive and industrial customers. Schaeffler India manufactures these products across its four state-of-the-art facilities in India. The Company also has two dedicated R&D facilities in India that roll out innovative products for the Indian market. Through its thriving after-market network, the

Schaeffler India encompasses the Indian operations of Schaeffler Group. The post-merger combined entity offers a vast and diversified mix of products to its automotive and industrial customers. Schaeffler India manufactures these products across its four state-of-the-art facilities in India. The Company also has two dedicated R&D facilities in India that roll out innovative products for the Indian market. Through its thriving after-market network, the Company serves its customers across both the automotive and industrial segments. The company also provides best-in-class training services to important groups such as garages and fleet workshops under the automotive aftermarket and industrial distribution segments. The Company enjoys a prominent position in all its business segments. It has a balanced revenue mix between its automotive and industrial businesses.

Established in 1946, Schaeffler Group is a global automotive and industrial supplier. It manufactures high-precision components and systems for engine, transmission and chassis applications in the automotive segment. The Group also produces rolling and plain bearing solutions for a variety of industrial applications.

The Group owns majority stake in Schaeffler India. With effect from 2018, INA Bearings India Private Limited and LuK India Private Limited merged with Schaeffler India Limited (erstwhile FAG Bearings India Limited). The objective of the merger was to consolidate the Group’s India businesses and optimise the potential of the merged entity. Schaeffler AG, the Group’s flagship company, is a publicly listed stock corporation incorporated under the German law, with its registered office in Herzogenaurach.

Business area of the company

Schaeffler is actively engaged in innovating and shaping the global pace of change. With innovative technologies, products, and services for CO2-efficient drives, electric mobility, Industry 4.0, digitalization, and renewable energies, the company is a reliable partner for making motion and mobility more efficient, intelligent, and sustainable.

Products & solutions

Automotive OEM:

  • Chassis components and systems
  • Clutches and transmission systems
  • Engine components and precision products
  • Drives for hybrid and Electric Vehicles (EVs)

Industrial:

  • Rolling and plain bearings
  • Linear guidance system
  • Maintenance products
  • Maintenance services
  • Mechatronics
  • Digital services

Automotive Aftermarket Replacement parts for:

  • Transmission
  • Engine components
  • Chassis components
  • Intelligent solutions for Repair and service points via platforms such as REPXPERT

Awards

  • 2017: Aisin: Quality Achivement Performe Certificate
  • 2017: Honda: Quality and Delivery Award
  • 2017: Inova - LUK Desempenho Empresarial 2017
  • 2018: Bosch - Certificate of Recognition
  • 2018: Clarus Technology: Destaque Sustentavel
  • 2018: CNH: Suppliers Excellence Awards
  • 2018: Inova - LUK Desempenho Empresarial 2018
  • 2018: Inova - LUK Embreagem 2018
  • 2018: NEI Magazine - NEI Top Five
  • 2018: Quality Achivement Performe Certificate
  • 2018: Sindirepa - FAG Best of the year
  • 2018: Sindirepa - INA Best of the year
  • 2018: Sindirepa - LUK Best of the year
  • 2019: GM: Supllier Quality Excellence Award
  • 2019: Makita: Performance Certificate
  • 2019: Bosch - Supplier Quality Excellence Award
  • 2019: Sindirepa - FAG Best of the year
  • 2019: Sindirepa - INA Best of the year
  • 2019: Sindirepa - LUK Best of the year
  • 2019: VW: Supllier Quality Excellence Award
  • 2020: Sindirepa: FAG Best of the Year 2020
  • 2020: Sindirepa: INA Best of the Year 2020
  • 2020: Sindirepa: LUK Best of the Year 2020

Milestones

  • 1962: Incorporation of Company
  • 1969: FAG Germany acquired shares from Norma Hoffman
  • 1975: Expansion: Railway Bearing plant was commissioned
  • 1986: Name of the company changed to FAG Bearings India Limited
  • 1992: Brand Name changed from NORMA to FAG
  • 1997: JV between LuK and Rane for clutch systems in India
  • 1997: Commissioned export oriented unit for Cylindrical Roller Bearings
  • 1999: Commissioned India's first Wheel Bearing Plant at Vadodara
  • 1999: Production of clutches for Tractors at LuK, Hosur
  • 2001: INA plant set up at Pirangut, Pune
  • 2001: FAG becomes part of Schaeffler Group
  • 2001: Acquisition of Rane LuK to become LuK India
  • 2007: Production of HLA/RFF started at INA, Talegaon
  • 2007: New INA plant inaugurated at Talegaon, Pune. Introduced E1 Spherical Roller Bearings
  • 2011: Commissioned 3rd Generation Wheel Bearing plant at Vadodara
  • 2012: FAG Savli plant inaugurated with advanced Gen C production
  • 2012: LuK : 2nd Plant extension
  • 2012: Production of Hydraulic CRS at LuK, Hosur
  • 2013: Production of OAP started at INA, Talegaon
  • 2015: Schaeffler India - Schaeffler Technology Center
  • 2017: FAG Bearings India Ltd renamed as Schaeffler India Ltd
  • 2017: Announcement of merger
  • 2017: Production of Heavy clutches (Dia 395 and 430) at LuK, Hosur
  • 2018: Closure of merger to form one strong Schaeffler entity in india
  • 2019: Established corporate HQ in Pune
  • 2020: Schaeffler steps up its involvement in Rear Wheel Steering
  • 2020: Schaeffler India signs MoU with Tata Institute of Social Sciences to impart skills training to youth for employability
  • 2020: Schaeffler India’s Automotive Aftermarket division launches wide range of automotive lubricant under the Schaeffler TruPower brand
  • 2020: Schaeffler India launches ‘OPTIME’ making condition monitoring cost-effective for all plant assets
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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