Mehabe score: 6 G Factor: 4 Piotski Score: 7 The stock has a rating 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 4 and Piotski score of 7.
Description
Schaeffler India Ltd is engaged in the development, manufacturing and distribution of high-precision roller and ball bearings, engine systems and transmission components, chassis applications, clutch systems and related machine building manufacturing activities.[1] Site:SCHAEFFLER Main Symbol:SCHAEFFLER
Stock trades at 1977.0, above its 50dma 1813.65. It also trades above its 200dma 1568.93. The stock remains bullish on techicals
The 52 week high is at 2000.00 and the 52week low is at 964.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 26.18%
Weakness
– Stock is trading at 8.46 times its book value
– has a low return on equity of 13.87% for last 3 years.
Competition
– The industry trades at a mean P/E of 38.1x. Vishal Bearings trades at the industry’s max P/E of 167.4x. SCHAEFFLER trades at a P/E of 49.1x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 8.0. SCHAEFFLER has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 10.1%. The max 1- month return was given by NRB Indl Bearing: a return of 17.78 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 1523.0 cr compared to Rs 1274.0 cr for period ended Dec 2020, a rise of 19.5% .
vis-vis 229.0 for period ended Dec 2020 .
Operating Margins expanded 87.0 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 287.0 cr for period ended Dec 2021 and operating profit margin at 18.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 12.2 compared to Rs 10.93 for previous quarter ended Sep 2021 and Rs 9.06 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5561.0 cr for period ended Dec 2021 vis-vis sales of Rs 3762.0 cr for the period ended Dec 2020, a healthy growth of 32.4%. The 3 year sales cagr stood at 6.8%.
Operating margins expanded to 17.0% for period ended Dec 2021 vis-vis 14.0% for period ended Dec 2020, expansion of 300.0 bps.
Net Profit reported at Rs 629.0 cr for period ended Dec 2021 vis-vis sales of Rs 291.0 cr for the period ended Dec 2020, rising 53.7%.
Company recorded a healthy Net Profit CAGR of 14.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is 48% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 116% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 5.16% vis-vis 4.99% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 5.53% vis-vis 5.33% for Sep 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 26.18% – Stock is trading at 8.46 times its book value
– has a low return on equity of 13.87% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1813.65 and is trading at 1977.0, thus bullish price action wise.
