Buy Schaeffler India; target of Rs 5000: JM Financial

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26 Aug, 2025 12:21

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JM Financial's research report on Schaeffler India

Schaeffler Group announced merger of its unlisted subsidiaries i.e. INA Bearings (INA) and Luk India (LuK) into the listed subsidiary Schaeffler India (SCHFL), to form a single India wide entity.  The consideration will be paid through share swap, resulting in an increase in parent  company’s holding to 74.1% (vs 51.3 %).The transaction value  is pegged  at INR 62bn, valu ing the combined entity at  PE of  48x CY16 (32% premium to  SCHFL ) and EVE of 23x  CY16 (8% premium to SCHFL ).

Outlook

We continue to maintain BUY rating with TP of INR 5,000 as we forecast 11% /19% sales/net  profit CAGR over CY16 - 18E.

For all recommendations report, click here

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