Accumulate Schaeffler India; target of Rs 3696: Asit C Mehta

Asit C Mehta report on Schaeffler India

Schaeffler India Limited (SCHAEFFLER) was incorporated in 1962 and 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. The Company operates through three segments: Automotive, Industrial and Automotive Aftermarket. The Automotive segment is a pioneer in developing and manufacturing technological solutions for passenger cars and commercial vehicles, and tractors. The Industrial segment offers a portfolio of bearing solutions, ranging from high-speed and high-precision bearings with small diameters to large-size bearings. It focusses on smart products and connecting components for a wide sectorial range. The Company’s manufacturing units are located in the State of Gujarat at Vadodara and Savli, in the State of Maharashtra at Talegoan (Pune) and in the State of Tamilnadu at Hosur. It has 8 Sales Offices and 2 R&D facilities across India.

Outlook

Hence, We recommend Schaeffler India Limited with a target price of Rs 3,696 based on CY26E EPS of Rs 85.08, and a forward PE valuation multiple of 43.45x. Hence, we recommend ACCUMULATE rating for the long term.

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