Shares of Schaeffler India were up nearly 2 percent at Rs 3,646.50 in early trade on September 11 after the company acquired 100 percent shareholding of KRSV Innovative Auto Solutions.
In August, the company had announced the acquisition of KRSV Innovative Auto Solutions Pvt Ltd, or Koovers, for about Rs 142 crore.
Koovers is a Bengaluru-based B2B company (business to business) that offers spare parts solutions in the Indian aftermarket workshops.
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Broking house Sharekhan in its report dated September 6 has maintained the 'buy' rating on the stock with revised price target of Rs 3,928 per share.
The broking house believes that acquiring KRSV would further help it build up a strong online platform in the automotive aftermarket space. Despite headwinds in export markets in the near term, Sharekhan believes Schaeffler Group’s relocation strategy would continue to benefit Scheffler India due to structural fit.
A well-diversified revenue stream on geographically reduces a risk of sharp fall in case of bottlenecks in any individual destination.
The company would benefit from ongoing localization, strategic expansion in export market and strong footprint in the market segment. The successful entry into system solution supply to EVs would enhance earning potential on volume ramp-up and localization, Sharekhan added.
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