Schaeffler India Ltd.
NSE: SCHAEFFLERSchaeffler India Ltd.: A 30-second snapshot
Schaeffler India (₹4,029.6) is an MNC auto-components manufacturer trading above its 200-DMA (₹3,942) but just below its 50-DMA (₹4,044), with a 52-week drawdown of 9.35%. Q1 CY2026 net profit grew 19.7–26% YoY on revenue of ₹25,070 million, supported by a 5-year earnings CAGR of 35.5% and ROE of 20.21%. At a trailing PE of 51.68, the stock carries the highest valuation multiple among the 6 Auto-sector peers benchmarked.
P/E
51.7
Forward P/E
39.9
ROE
+20.2%
Debt / Equity
0.90
Profit Margin
+11.9%
Div. Yield
+0.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
72/100
News
8 headlines · 4 positive · 1 negative
Schaeffler India Q1 CY2026 Net Profit Rises 19.7%; Revenue at ₹25,070 Million - Autocar Professional
Autocar Professional
Schaeffler India Q1 Results | Net profit surges 26% on higher revenue, margin gains - CNBC TV18
CNBC TV18
1750% dividend! This multibagger MNC stock announced highest amount/share in 5 years - Business Today
Business Today
Schaeffler India - Bonus issue, stock split, dividend: 9 stocks to turn ex-record date next week, check details - The Economic Times
The Economic Times
Schaeffler India opens computational research facility in Bengaluru - Manufacturing Today India
Manufacturing Today India
Recent context
- ·Q1 CY2026 (reported 29 April 2026): net profit rose 19.7% per Autocar Professional and 26% per CNBCTV18 on revenue of ₹25,070 million, with margin gains cited as a contributor to the profit outperformance.
- ·Schaeffler India announced a 1,750% dividend per share — described as the highest per-share amount in 5 years (Business Today, 22 April 2026) — alongside bonus-issue and stock-split disclosures flagged in Economic Times (18 April 2026).
- ·A new computational research facility was inaugurated in Bengaluru in May 2026 (Manufacturing Today India), signalling continued investment in the Indian R&D footprint.
Strengths
- +5-year earnings CAGR of 35.5% and revenue CAGR of 27.5% demonstrate sustained top- and bottom-line compounding over the cycle.
- +ROE of 20.21% ranks 2nd of 6 Auto-sector peers, and FCF was positive in 4 of the available years, indicating capital efficiency alongside growth.
- +Quality score of 61 ranks 1st of 6 peers in the Auto sector, with a consistency score of 75 on the persistence model (ROE above 15% in 4 of available years, debt trend flat).
- +Q1 CY2026 results (net profit +19.7–26% YoY) and a 1,750% dividend announcement represent the most recent datapoints reinforcing the earnings trajectory.
Weaknesses
- −Trailing PE of 51.68 is 42–151% above each of the 5 benchmarked Auto peers (range 20.6–36.1), concentrating valuation risk in the event of a growth deceleration or margin compression.
- −D/E of 0.904 with a flat debt trend means leverage is not declining; profit margin of 11.88% leaves limited buffer if input costs or competitive dynamics compress the spread.
- −1-year price return of +2.81% lags the implied earnings growth rate of the business, suggesting the market has been absorbing a valuation derating rather than re-rating upward.
- −Analyst coverage of only 7 analysts limits the breadth of scrutiny relative to large-cap Auto peers, and the forward PE of 39.87 still represents a premium to all peers even on consensus estimates.
Open questions
- ?Does the 35.5% 5-year earnings CAGR reflect a structural competitive advantage in the precision bearings and auto-components segment, or is it partly explained by a cyclical recovery in the broader Auto sector that may mean-revert?
- ?At a trailing PE of 51.68 against peers in the 20–36 range, what rate of earnings growth over the next 3–5 years would be required to justify the current valuation premium, and how does that compare to management guidance?
- ?The D/E of 0.904 has held flat while FCF was positive in 4 of the available years — is the free cash flow being deployed into capital expenditure, dividends, or working capital, and how does that affect the debt trajectory?
- ?How much of the MNC premium (German parent Schaeffler AG) is structural (technology transfer, export access, governance quality) versus cyclical (rupee depreciation tailwind, tariff protection), and what would cause it to compress?
Peer comparison: Auto
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SCHAEFFLER | Schaeffler India Ltd.You're viewing | 51.7 | +20.2% | 61 |
| Industry avg | across 5 peers | 28.0 | +15.0% | 43 |
| EICHERMOT | Eicher Motors Ltd. | 36.1 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.6 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 28.3 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹4,029.60
SMA 50
₹4,043.88
SMA 200
₹3,942.38
RSI (14)
45.3 (neutral)
From 52w high
-9.3%
1Y return
+2.8%
3M return
+6.5%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumTrailing PE of 51.68 is the highest among the 6 Auto-sector peers benchmarked (peer range: 20.6–36.1 across BAJAJ-AUTO, EICHERMOT, M&M, MARUTI, TMPV), placing SCHAEFFLER at a 42–151% valuation premium to each peer; a premium that narrows the buffer if earnings disappoint.
- lowAnalyst coverage pool is limited to 7 analysts (mean rating 1.71, 1–5 scale, lower = more constructive); small sample size reduces statistical confidence in the consensus figure.
- lowpriceChange1Y is null for all 5 peer companies, making relative 1-year price-performance ranking unavailable; SCHAEFFLER rank on that metric is indeterminate.
- lowCurrent price of ₹4,029.6 is marginally below the 50-DMA of ₹4,043.88 (gap of -0.35%), with nearest resistance at ₹4,038 — a cluster that has not yet been cleared on a closing basis.
Cross-section contradictions
- 5-year earnings CAGR of 35.5% and ROE of 20.21% (2nd of 6 peers) reflect strong compounding fundamentals, yet the stock returned only +2.81% over the past 12 months, indicating that the valuation re-rating may have already occurred in prior years and that current PE of 51.68 is pricing in continued high growth.
- Q1 CY2026 net profit rose 19.7–26% YoY with news sentiment tilted 4 positive vs 1 negative, yet RSI sits at 45.3 (neutral) and the stock is below its 50-DMA — recent earnings strength has not translated into near-term price momentum.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days