Sharekhan's research report on Schaeffler India
estimates. It was yet another strong quarter, beating our earnings estimates by 17%, led by robust revenue growth and better-than-expected rise in EBITDA margins. \Given a robust outlook, we expect its earnings to grow at 38.6% CAGR from CY2020-22E, driven by a 21.4% revenue CAGR during CY2020-22E and a 240 bps improvement in EBITDA margins. The stock trades below its historical average at P/E of 28.7x and EV/EBITDA of 16.4x its CY2022E estimates.
Outlook
We retain a Buy rating on Schaeffler India Limited (SIL) with a revised PT of Rs. 5,900, led by a strong outlook for its automotive and industrial businesses, and an upgrade in earnings
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