Mehabe score: 6 G Factor: 3 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 5.
Description
Schaeffler India is engaged in the development, manufacturing and distribution of high-precision roller and ball bearings, engine systems and transmission components, chassis applications and related machine building manufacturing activities.Site:SCHAEFFLERMain Symbol:SCHAEFFLER
Stock trades at 5401.0, above its 50dma 5340.8. It also trades above its 200dma 4866.54. The stock remains bullish on techicals
The 52 week high is at 5747.95 and the 52week low is at 3425.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has a low return on equity of 13.17% for last 3 years.
Competition
– The industry trades at a mean P/E of 40.3x. Vishal Bearings trades at the industry’s max P/E of 94.95x. SCHAEFFLER trades at a P/E of 47.9x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. SCHAEFFLER has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 2.2%. The max 1- month return was given by Bimetal Bearings: a return of 17.78 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1233.0 cr compared to Rs 439.0 cr for period ended Jun 2020, a rise of 180.9%
Company reported operating profit of Rs 207.0 cr for period ended Jun 2021, operating profit margin at 16.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 40.99 compared to Rs 44.64 for previous quarter ended Mar 2021 and Rs -13.59 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4944.0 cr for period ended TTM vis-vis sales of Rs 3762.0 cr for the period ended Dec 2020, a healthy growth of 23.9%. The 3 year sales cagr stood at 2.7%.
Operating margins expanded to 17.0% for period ended TTM vis-vis 14.0% for period ended Dec 2020, expansion of 300.0 bps.
Net Profit reported at Rs 523.0 cr for period ended TTM vis-vis sales of Rs 291.0 cr for the period ended Dec 2020, rising 44.4%.
Company recorded a Net Profit CAGR of 7.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 649.0 cr for period ended Dec 2020 vis-vis Rs 510.0 cr for period ended Dec 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 46% on a 1 Year basis vis-vis a return of 1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 4% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 4.78% vis-vis 5.17% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 5.31% vis-vis 5.42% for Mar 2021
Conclusion
– is almost debt free. – has a low return on equity of 13.17% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 5340.8 and is trading at 5401.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
