Buy Schaeffler India; target of Rs 5851: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Edelweiss' research report on Schaeffler India

Schaeffler India’s (Schaeffler) Q1CY18 sales grew 13% YoY (in line with estimate) led by strong rebound in industrial (up ~14% YoY) and spurt in automotive OEM (up ~26% YoY) segments. Distribution segment (~30% of sales) clocked strong double digit growth. Overall EBITDA margin contracted 145bps YoY due to higher raw material cost and dip in share of exports, leading to mere ~4.5% EDITDA growth. We believe, Schaeffler is well placed to gain from the structural and cyclical uptick in both industrial and automotive segments.

Outlook

We maintain ‘BUY’ with TP of INR5,851 (valued at 28x CY19E). Due to impending merger approvals, we have not considered financials as a combined entity. At CMP, the stock trades at 31.0x CY18E EPS and 25.2x CY19E EPS.For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More