Schneider Electric Infrastructure Limited

Industrials — Electrical Equipment & Parts · NSE

₹1,157.00−₹7.00 (−0.60%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Schneider Electric Infrastructure Limited designs, manufactures, builds, and services products and systems for electricity distribution in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,447

Annual revenue₹2,870 Cr

How does it make money?

Turns over ₹2,870 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 1,447 employees supports ₹1.98 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.98 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. 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 24.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 27.4% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 35.4% and earnings to grow about 80.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+35.4%

Est. earnings growth+80.5%

Analysts3

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 +63% while net margin moved +6% 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+63%

Margin effect+6%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 150.5x is demanding — it needs sustained high growth to justify
✗ P/E is 39% above its own historical median of 108.4x — expensive by its own standards
✗ P/B of 35.68x is a steep premium to book

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

23/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

150.5x

3Y Median

108.4x

40 monthly readings · mean 104.0x · range 61.9x–167.4x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 39% above its 3y median of 108.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 69% above the peer median of 88.8x.

vs. its own history

Expensive

108.4x median over 40 months · +39%

vs. sector peers

Expensive

88.8x median of 3 peers · +69%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

71.0x

PEG

7.60

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.7% to 13.6% over 3 years.
Cash generation is improving
Free cash flow is up 141% over 3 years.
High return on capital employed
ROCE of 24.8% 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 Attention2

Return on equity is falling
ROE has dropped from 81.8% to 27.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.8% to 24.8% — often a sign of competition or overexpansion.

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 24.8% 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.
Margin expansion has further to run
EBITDA margin has risen from 9.7% to 13.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The price already assumes success
The stock trades 39% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 81.8% to 27.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

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

1Revenue growth stays above 13% a year✓ 17.6% CAGR
Latest reported year was 4.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹120 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹27,664 Cr

Mid Cap

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

P/E (Trailing)

150.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

35.68x

Rich

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

EPS (TTM)

₹7.69

Profitable

Profitable on a per-share basis

ROE

27.4%

Strong

Strong capital efficiency

ROCE

24.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

4.8%

Modest

Modest growth

Profit Growth (YoY)

-69.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹120 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

48.4x

Improving

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

Operating Margin

3.9%

Weak

Thin margins leave little room for error

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

1.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1213.6 / 1233.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,764 Cr	₹2,207 Cr	₹2,619 Cr	₹2,870 Cr	+17.6%
EBITDA	₹171 Cr	₹305 Cr	₹397 Cr	₹389 Cr	+31.6%
EBITDA Margin	9.7%	13.8%	15.1%	13.6%	—
PAT (Net Profit)	₹124 Cr	₹172 Cr	₹268 Cr	₹213 Cr	+19.8%
EPS	₹5.17	₹7.19	₹11.2	₹8.89	+19.8%
ROE	81.8%	58.1%	47.7%	27.4%	—
ROCE	29.8%	33.3%	35.3%	24.8%	—
Total Debt	₹376 Cr	₹320 Cr	₹522 Cr	₹347 Cr	-2.7%
Free Cash Flow	₹50 Cr	₹131 Cr	₹245 Cr	₹120 Cr	+34.0%

🟢 Revenue has grown at 17.6% a year over 3 years.

🟢 EBITDA has grown at 31.6% a year over 3 years.

🟢 EBITDA Margin has risen from 9.7% to 13.6% over 3 years (+3.9 pts).

🟢 PAT (Net Profit) has grown at 19.8% a year over 3 years.

🟢 EPS has grown at 19.8% a year over 3 years.

🔴 ROE has fallen from 81.8% to 27.4% over 3 years (-54.4 pts).

🔴 ROCE has fallen from 29.8% to 24.8% over 3 years (-5.0 pts).

🟢 Total Debt has shrunk at 2.7% a year over 3 years.

🟢 Free Cash Flow has grown at 34.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,344 Cr

Total Liabilities

₹1,569 Cr

Cash & Equivalents

₹358 Cr

Operating Cash Flow

₹225 Cr

Capex

-₹104 Cr

Shareholding (proxy)

Institutional Holding

6.2%

Insider Holding

76.9%

Corporate Actions

Ex-Dividend Date

19 Jul 2012

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,416.67

+22.4% vs CMP

Target Range

₹1,375 – ₹1,475

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive4 mixed1 general

Schneider Electric Infrastructure Share Price Falls 2.05%

Univest, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Schneider Electric Infrastructure (BSE:534139) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

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

Schneider Electric Infrastructure shares tumble 12% after Q1 profit plunges 70% YoY

The Economic Times, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Stock to buy today: Schneider Electric Infrastructure (₹1,275.65)

BusinessLine, 05 Oct

Schneider Electric Infrastructure Q1 Net Profit Drops To ₹12.4 Cr As Revenue Rises To ₹650 Cr

Sahi, 17 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Schneider Electric Infrastructure Share Price Slumps Over 12% After Q1 Results. What Should Investors Do?

NDTV Profit, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Risk

MiddlingBusiness Quality · Profitability

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑