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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Schaeffler India Ltd

Basic Stock Data

Last Updated: June 12, 2024, 10:24 pm

Market Cap 68,746 Cr.
Current Price 4,398
High / Low4,749/2,612
Stock P/E74.7
Book Value 308
Dividend Yield0.57 %
ROCE26.7 %
ROE20.0 %
Face Value 2.00
PEG Ratio2.89

Competitors of Schaeffler India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Austin Engineering Company Ltd 74.7 Cr. 215268/14720.3 1750.00 %8.95 %6.24 % 10.0
Deccan Bearings Ltd 13.1 Cr. 60.073.1/33.2 1.050.00 %55.4 %55.4 % 10.0
Benara Bearings & Pistons Ltd 27.8 Cr. 15.726.8/12.0 10.80.00 %2.39 %14.1 % 10.0
NRB Bearings Ltd 3,110 Cr. 321402/17731.9 88.71.55 %14.6 %12.8 % 2.00
Menon Bearings Ltd 711 Cr. 127166/10827.6 26.11.79 %23.0 %18.4 % 1.00
Industry Average787.32 Cr147.7415.9660.330.67%20.87%21.39%6.60

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,3171,2331,4881,5231,5681,7491,7561,7951,6941,8291,8481,8551,849
Expenses1,1041,0261,2231,2361,2591,4271,4371,4491,3791,4871,5061,5271,514
Operating Profit213207264287308322319345315342342328335
OPM %16%17%18%19%20%18%18%19%19%19%18%18%18%
Other Income22131622203123183331312631
Interest1111111111211
Depreciation48485051505152535254565760
Profit before tax186171230257277301290310294318316296306
Tax %25%25%26%26%25%25%26%25%25%25%26%27%26%
Net Profit140128171191207226215231219237235217228
EPS in Rs8.938.2010.9312.2013.2514.4413.7814.7814.0315.1815.0313.9114.57

Last Updated: June 9, 2024, 7:06 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 2:02 am

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales1,4111,3901,6181,7111,7953,9414,5624,3613,7625,5616,8677,2267,382
Expenses1,1901,2061,3751,4051,4953,2573,8213,7263,2254,5885,5715,8996,034
Operating Profit2211842433062996837406355379731,2961,3271,347
OPM %16%13%15%18%17%17%16%15%14%17%19%18%18%
Other Income4545405666554863607292120119
Interest21232118465554
Depreciation3043496664138148159194197206219227
Profit before tax2331852322942995896325343978431,1771,2241,235
Tax %32%34%34%33%35%34%34%31%27%25%25%26%
Net Profit159122153197195388420368291629879909917
EPS in Rs19.1614.6618.4023.7623.4746.7526.8623.5218.6240.2556.2558.1658.69
Dividend Payout %5%8%8%8%10%7%22%30%41%8%43%45%

Profit & Loss Yearly Chart

Unable to calculate Year-wise YoY Net Profit Growth.

Growth

Compounded Sales Growth
10 Years:18%
5 Years:10%
3 Years:24%
TTM:6%
Compounded Profit Growth
10 Years:22%
5 Years:15%
3 Years:46%
TTM:5%
Stock Price CAGR
10 Years:24%
5 Years:29%
3 Years:53%
1 Year:32%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:20%
Last Year:20%

Last Updated: May 1, 2024, 8:33 am

Balance Sheet

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Equity Capital171717171717313131313131
Reserves8639731,0911,2731,4592,3092,6752,9313,1093,6224,2554,784
Borrowings000006958065615751
Other Liabilities2643443273663797861,0046839581,1821,3831,403
Total Liabilities1,1441,3331,4341,6551,8543,1803,7673,6454,1634,8965,7276,269
Fixed Assets2793993703463867447318951,0061,0701,1231,280
CWIP114132052245316216616089249491
Investments44400000000142
Other Assets7479171,0391,2581,4432,3832,8752,5842,9973,7374,3554,356
Total Assets1,1441,3331,4341,6551,8543,1803,7673,6454,1634,8965,7276,269

Reserves and Borrowings Chart

Schaeffler India Ltd Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity 137162117182193401238510649465751900
Cash from Investing Activity -172-52-195-222-139-270-184-366-432-342-535-611
Cash from Financing Activity -21-10-13-17-22-88-52-171-122-127-257-386
Net Cash Flow-56100-91-5732432-2795-4-41-97

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow221.00184.00243.00306.00299.00614.00682.00635.00472.00912.00-56.00-50.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days667665726659605367565553
Inventory Days57697081929211696112115107107
Days Payable729879899191100661201029586
Cash Conversion Cycle514856646760768259686674
Working Capital Days635275696357686652545656
ROCE %29%20%22%25%22%31%26%19%13%25%29%

Financial Efficiency Indicators Chart

Schaeffler India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.13%74.13%74.13%74.13%74.13%74.13%74.13%74.13%74.13%74.13%74.13%74.13%
FIIs5.17%4.78%4.99%5.16%5.05%4.94%5.74%4.81%4.40%4.04%4.51%4.36%
DIIs15.28%15.79%15.55%15.19%15.23%15.34%14.19%15.04%15.57%15.87%15.46%15.68%
Government0.00%0.00%0.00%0.00%0.16%0.17%0.00%0.00%0.00%0.00%0.00%0.00%
Public5.42%5.31%5.33%5.53%5.43%5.42%5.95%6.02%5.90%5.95%5.88%5.83%
No. of Shareholders15,94115,08717,60722,21432,54240,37565,73155,46257,45263,92968,18970,695

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan3,720,4633.091191.661,623,7402024-06-11129.13%
Axis Midcap Fund1,749,3422.28560.311,623,7402024-06-117.74%
SBI Magnum Midcap Fund1,623,7403.36520.081,623,7402024-06-110%
SBI Blue Chip Fund1,314,8700.97421.151,623,7402024-06-11-19.02%
UTI Flexi Cap Fund1,082,3571.31346.681,623,7402024-06-11-33.34%
DSP Mid Cap Fund737,5741.41236.251,623,7402024-06-11-54.58%
Kotak Equity Opportunities Fund - Regular Plan735,0001.32235.421,623,7402024-06-11-54.73%
Kotak Small Cap Fund - Regular Plan633,0331.44202.761,623,7402024-06-11-61.01%
Canara Robeco Emerging Equities489,3250.79156.731,623,7402024-06-11-69.86%
UTI Mid Cap Fund465,4321.52149.081,623,7402024-06-11-71.34%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22
FaceValue2.002.00
Basic EPS (Rs.)57.5056.30
Diluted EPS (Rs.)57.5056.30
Cash EPS (Rs.)71.7969.46
Book Value[Excl.RevalReserv]/Share (Rs.)307.44274.21
Book Value[Incl.RevalReserv]/Share (Rs.)307.44274.21
Revenue From Operations / Share (Rs.)463.91439.37
PBDIT / Share (Rs.)92.5087.78
PBIT / Share (Rs.)78.2374.58
PBT / Share (Rs.)77.6675.31
Net Profit / Share (Rs.)57.5256.25
NP After MI And SOA / Share (Rs.)57.5256.25
PBDIT Margin (%)19.9319.97
PBIT Margin (%)16.8616.97
PBT Margin (%)16.7317.13
Net Profit Margin (%)12.3912.80
NP After MI And SOA Margin (%)12.3912.80
Return on Networth / Equity (%)18.7020.51
Return on Capital Employeed (%)25.1526.80
Return On Assets (%)14.3415.35
Asset Turnover Ratio (%)1.210.00
Current Ratio (X)2.922.89
Quick Ratio (X)1.991.99
Inventory Turnover Ratio (X)2.410.00
Dividend Payout Ratio (NP) (%)41.7228.44
Dividend Payout Ratio (CP) (%)33.4323.03
Earning Retention Ratio (%)58.2871.56
Cash Earning Retention Ratio (%)66.5776.97
Interest Coverage Ratio (X)338.58386.50
Interest Coverage Ratio (Post Tax) (X)212.64244.44
Enterprise Value (Cr.)48464.7341342.01
EV / Net Operating Revenue (X)6.686.02
EV / EBITDA (X)33.5230.13
MarketCap / Net Operating Revenue (X)6.906.25
Retention Ratios (%)58.2771.55
Price / BV (X)10.4210.01
Price / Net Operating Revenue (X)6.906.25
EarningsYield0.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 4,627.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 5.22% compared to the current price 4398

Intrinsic Value: 5,822.19

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 32.38% compared to the current price ₹4398

Last 5 Year EPS CAGR: 25.81%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.75%, which is a positive sign.
  2. The company has higher reserves (2,445.33 cr) compared to borrowings (30.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.38 cr) and profit (326.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 60.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 64.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Schaeffler India Ltd:
    1. Net Profit Margin: 12.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.15% (Industry Average ROCE: 25.07%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 18.70% (Industry Average ROE: 22.09%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 212.64
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.99
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 74.7 (Industry average Stock P/E: 31.88)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Schaeffler India Ltd. is a Public Limited Listed company incorporated on 27/04/1962 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29130PN1962PLC204515 and registration number is 012340. Currently Company is involved in the business activities of Manufacture of bearings, gears, gearing and driving elements. Company’s Total Operating Revenue is Rs. 5560.51 Cr. and Equity Capital is Rs. 31.26 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Bearings15th Floor, Pune Maharashtra 411045info.in@schaeffler.com
http://www.schaeffler.co.in
Management
NamePosition Held
Ms. Eranti V SumithasriChairperson
Mr. Harsha KadamManaging Director & CEO
Mr. Hardevi VaziraniDirector - Finance & CFO
Mrs. Renu ChalluIndependent Director
Mr. Arvind BalajiIndependent Director
Mr. Amit KalyaniIndependent Director
Mr. Andreas SchickNon Exe.Non Ind.Director
Mr. Dharmesh AroraNon Exe.Non Ind.Director
Mr. Jens Sch�lerNon Exe.Non Ind.Director

FAQ

What is the latest fair value of Schaeffler India Ltd?

The latest fair value of Schaeffler India Ltd is ₹4627.75.

What is the Market Cap of Schaeffler India Ltd?

The Market Cap of Schaeffler India Ltd is 68,746 Cr..

What is the current Stock Price of Schaeffler India Ltd as on 12 June 2024?

The current stock price of Schaeffler India Ltd as on 12 June 2024 is ₹4,398.

What is the High / Low of Schaeffler India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Schaeffler India Ltd stocks is 4,749/2,612.

What is the Stock P/E of Schaeffler India Ltd?

The Stock P/E of Schaeffler India Ltd is 74.7.

What is the Book Value of Schaeffler India Ltd?

The Book Value of Schaeffler India Ltd is 308.

What is the Dividend Yield of Schaeffler India Ltd?

The Dividend Yield of Schaeffler India Ltd is 0.57 %.

What is the ROCE of Schaeffler India Ltd?

The ROCE of Schaeffler India Ltd is 26.7 %.

What is the ROE of Schaeffler India Ltd?

The ROE of Schaeffler India Ltd is 20.0 %.

What is the Face Value of Schaeffler India Ltd?

The Face Value of Schaeffler India Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Schaeffler India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE