Sharekhan's research report on Schaeffler India
We expect Schaeffler to benefit from industrial and automobile aftermarkets, strong growth traction in railways and export segments and better prospects for bearings business, amid stricter norms. Earnings likely to grow by 51.7% in CY2021E and 32.9% in CY2022E, driven by a 21.4% CAGR during CY2020E-22E and a 320 bps improvement in EBITDA margin. Stock trades attractively at P/E multiple of 27x and EV/EBITDA multiple of 15.2x its CY2022E estimates.
Outlook
We maintain our Buy rating on Schaeffler India Limited (SIL) with a revised PT of Rs. 5,258, factoring in better multiples on strong traction in business outlook and upgrade in earnings estimates.
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