Schaeffler India Ltd Stock Analysis

BSE: 505790 | NSE: SCHAEFFLER | Bearings | Large Cap

BSE Share Price Jan 24, 12:05
8683.85 -315.55 (-3.51%)

DeciZen - Make an Informed Decision on Schaeffler India

Overall Rating

1. Quality

2. Valuation

Overvalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is Schaeffler India Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Schaeffler India Ltd is a good quality company.

2. Is Schaeffler India Ltd undervalued or overvalued?

The key valuation ratios of Schaeffler India Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Schaeffler India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Schaeffler India Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Schaeffler India:

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
ROCE % 27.2%18.7%12.3%15.7%19.1%14.2%21.1%17.7%13.6%10%-
Value Creation Index NA0.3-0.10.20.40.10.60.30.0-0.3-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 1,3091,4471,4021,6321,7241,7963,9334,5624,3613,7625,311
YoY Gr. Rt. %-10.6%-3.1%16.4%5.7%4.2%119%16%-4.4%-13.7%-
Adj EPS 105.889.668.898.3136.5116.9241144.1123.895.8185.6
YoY Gr. Rt. %--15.3%-23.3%43%38.8%-14.3%106.1%-40.2%-14.1%-22.6%-
BVPS (₹) 438527.9594.2665.2774.6887.61,390.2865.7947.61,004.61,109.1
Adj Net Profit 176149114163227194401451387299580
Cash Flow from Ops. 82.6137162117182193401238510649-
Debt/CF from Ops. 0000000.20.200-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 12.5%16.9%-1.5%-13.7%
Adj EPS -1.1%-6.8%-26.5%-22.6%
BVPS 9.75.3-10.36
Share Price 22.2% 17.4% 17.2% 92.3%

Key Financial Parameters

Performance Ratio Colour Code Guide
Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20TTM
Return on Equity % 2718.512.215.618.914.121.117.913.79.817.6
Op. Profit Mgn % 19.515.313.215.820.216.717.615.315.214.617.2
Net Profit Mgn % 13.410.38.21013.210.810.29.98.9810.9
Debt to Equity 0000000000-
Working Cap Days 1131261481451461491011391541640
Cash Conv. Cycle 193642384248335462600

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 17.60%

Sales growth is good in last 4 quarters at 69.60%

Sales growth has been subdued in last 3 years -1.47%

Net Profit has been subdued in last 3 years -26.49%

Latest Financials - Schaeffler India Ltd.

Standalone Consolidated
TTM EPS (₹) 185.6 -
TTM Sales (₹ Cr.) 5,311 -
BVPS (₹.) 1,109.1 -
Reserves (₹ Cr.) 3,436 -
P/BV 8.11 -
PE 48.50 -
From the Market
52 Week Low / High (₹) 4260.00 / 9640.05
All Time Low / High (₹) 23.00 / 9640.05
Market Cap (₹ Cr.) 28,133
Equity (₹ Cr.) 31.3
Face Value (₹) 10
Industry PE 46.9

Management X-Ray of Schaeffler India :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Schaeffler India Ltd

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
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