Buy Schaeffler India; target of Rs 3328: Sharekhan

Sharekhan's research report on Schaeffler India

EV proliferation would double its content per vehicle due to focus on the supply of systems and assemblies. SIL has revised its capex guidance from Rs. 1,000 crores to Rs, 1,500 crore over CY2020-CY2024, indicating a higher focus on localisation for an operating excellence. Management is strategically looking to expand its export business on the group’s relocation strategy, increased localisation, and cost-effective value-added production.

Outlook

We maintain our Buy rating on Schaeffler India Limited (SIL) with an unchanged PT of Rs 3,328 due to rising export revenue, improvement in profitability, and focus on localisation.