Schaeffler India Limited

Consumer Cyclical — Auto Parts · NSE

₹3,665.00+₹14.70 (+0.40%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Schaeffler India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Schaeffler India Limited engages in the development, manufacture, and distribution of high-precision roller and ball bearings, and related components in India and internationally. The company operates in two segments, Mobility Components and Related Solutions; and Others.

IndustryAuto Parts

SectorConsumer Cyclical

Employees3,120

Annual revenue₹9,550 Cr

How does it make money?

Turns over ₹9,550 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 3,120 employees supports ₹3.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.6% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 13.8% and earnings to grow about 15.4% in the year to 2027. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.8%

Est. earnings growth+15.4%

Analysts5

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +42% while net margin moved -8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+42%

Margin effect-8%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 45.7x is demanding — it needs sustained high growth to justify
✓ P/E is 22% below its own historical median of 58.9x — cheap by its own standards
✗ P/B of 9.34x is a steep premium to book

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

45.7x

4Y Median

58.9x

44 monthly readings · mean 60.1x · range 49.3x–82.4x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 4y median of 58.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 45.7x.

vs. its own history

Cheap

58.9x median over 44 months · -22%

vs. sector peers

Fair

45.7x median of 4 peers · -0%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.5x

PEG

4.88

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 209% over 3 years.
High return on capital employed
ROCE of 25.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 12.3% CAGR
Latest reported year was 17.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹826 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹57,285 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

45.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.34x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹80.2

Profitable

Profitable on a per-share basis

ROE

21.6%

Strong

Strong capital efficiency

ROCE

25.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

17.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.95%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹394 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

36.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

12.3%

Good

Assets are working hard

Operating Margin

14.8%

Average

Average margins

Net Margin

11.9%

Good

Strong bottom-line conversion

Current Ratio

2.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3865.8 / 3955.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

15.5

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹6,742 Cr	₹7,132 Cr	₹8,115 Cr	₹9,550 Cr	+12.3%
EBITDA	₹1,373 Cr	₹1,442 Cr	₹1,563 Cr	₹1,913 Cr	+11.7%
EBITDA Margin	20.4%	20.2%	19.3%	20.0%	—
PAT (Net Profit)	₹879 Cr	₹899 Cr	₹939 Cr	₹1,150 Cr	+9.4%
EPS	₹56.3	₹57.5	₹60.1	₹73.6	+9.3%
ROE	20.5%	18.7%	17.6%	19.0%	—
ROCE	27.1%	25.0%	23.7%	25.7%	—
Total Debt	₹57 Cr	₹51 Cr	₹56 Cr	₹55 Cr	-1.6%
Free Cash Flow	₹267 Cr	₹364 Cr	₹96 Cr	₹826 Cr	+45.6%

🟢 Revenue has grown at 12.3% a year over 3 years.

🟢 EBITDA has grown at 11.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 20.0% over 3 years.

🟢 PAT (Net Profit) has grown at 9.4% a year over 3 years.

🟢 EPS has grown at 9.3% a year over 3 years.

🔴 ROE has fallen from 20.5% to 19.0% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 27.1% to 25.7% over 3 years (-1.5 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.6% a year).

🟢 Free Cash Flow has grown at 45.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹8,213 Cr

Total Liabilities

₹2,165 Cr

Cash & Equivalents

₹964 Cr

Operating Cash Flow

₹1,290 Cr

Capex

-₹464 Cr

Shareholding (proxy)

Institutional Holding

18.6%

Insider Holding

74.3%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹35

Ex-Dividend Date

23 Apr 2026

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹4,823.71

+31.6% vs CMP

Target Range

₹4,225 – ₹5,344

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive3 mixed1 negative1 general

Schaeffler India Share Price near low; fundamentals firm

Univest, 13 Oct

SCHAEFFLER Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Schaeffler India Limited Just Missed Earnings - But Analysts Have Updated Their Models

Simply Wall Street, 25 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Earnings call transcript: Schaeffler India Q2 2026 stock falls on cash flow pressure

Investing.com, 23 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Schaeffler India Ltd Faces Bearish Momentum Amid Technical Downgrade

MarketsMojo, 13 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Schaeffler India jumps 6% on announcing healthy Q4 results, dividend

Business Standard, 25 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑