BSE:505790

Stock Analysis Report

Executive Summary

Schaeffler India Limited manufactures and sells ball and roller bearings, and related components worldwide.

Rewards

Earnings are forecast to grow 19.69% per year

Earnings grew by 46.6% over the past year

Pays a reliable dividend of 0.46%

Risk Analysis

High level of non-cash earnings

Shareholders have been substantially diluted in the past year



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has Schaeffler India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 505790 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

505790

-2.4%

IN Machinery

-2.9%

IN Market


1 Year Return

-19.8%

505790

-16.5%

IN Machinery

2.8%

IN Market

Return vs Industry: 505790 underperformed the Indian Machinery industry which returned -16.5% over the past year.

Return vs Market: 505790 underperformed the Indian Market which returned 2.8% over the past year.


Shareholder returns

505790IndustryMarket
7 Day-2.3%-2.4%-2.9%
30 Day1.6%-4.8%-1.4%
90 Day4.7%3.1%6.2%
1 Year-19.4%-19.8%-15.2%-16.5%4.8%2.8%
3 Year12.5%11.2%3.9%-0.05%31.3%24.4%
5 Year28.9%26.9%24.6%17.7%42.7%29.9%

Price Volatility Vs. Market

How volatile is Schaeffler India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Schaeffler India undervalued compared to its fair value and its price relative to the market?

34.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 505790 (₹4331.2) is trading above our estimate of fair value (₹1407.03)

Significantly Below Fair Value: 505790 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 505790 is poor value based on its PE Ratio (34.7x) compared to the Machinery industry average (13.4x).

PE vs Market: 505790 is poor value based on its PE Ratio (34.7x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: 505790 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 505790 is overvalued based on its PB Ratio (4.5x) compared to the IN Machinery industry average (1.1x).


Next Steps

Future Growth

How is Schaeffler India forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 505790's forecast earnings growth (19.7% per year) is above the savings rate (6.5%).

Earnings vs Market: 505790's earnings (19.7% per year) are forecast to grow faster than the Indian market (19.6% per year).

High Growth Earnings: 505790's earnings are forecast to grow, but not significantly.

Revenue vs Market: 505790's revenue (10% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 505790's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 505790's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Schaeffler India performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 505790 has a high level of non-cash earnings.

Growing Profit Margin: 505790's current net profit margins (8.7%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: 505790's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: 505790's earnings growth over the past year (46.6%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: 505790 earnings growth over the past year (46.6%) exceeded the Machinery industry 2.8%.


Return on Equity

High ROE: 505790's Return on Equity (14%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Schaeffler India's financial position?


Financial Position Analysis

Short Term Liabilities: 505790's short term assets (₹24.8B) exceed its short term liabilities (₹8.2B).

Long Term Liabilities: 505790's short term assets (₹24.8B) exceed its long term liabilities (₹377.4M).


Debt to Equity History and Analysis

Debt Level: 505790's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 505790's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 505790's debt is well covered by operating cash flow (2382%).

Interest Coverage: 505790 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 505790 has a high level of physical assets or inventory.

Debt Coverage by Assets: 505790's debt is covered by short term assets (assets are 247.6x debt).


Next Steps

Dividend

What is Schaeffler India's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: 505790's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 505790's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (2.56%).


Stability and Growth of Payments

Stable Dividend: 505790's dividends per share have been stable in the past 10 years.

Growing Dividend: 505790's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16%), 505790's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 505790's dividends in 3 years are forecast to be thoroughly covered by earnings (13.4% payout ratio).


Next Steps

Management

What is the CEO of Schaeffler India's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Harsha Kadam (53yo)

0.2yrs

Tenure

0

Mr. Harsha Kadam has been the Managing Director and Director of Schaeffler India Limited since October 01, 2019. Mr. Kadam is President of Industry at Schaeffler India Limited since March 12, 2018. He serv ...


Management Age and Tenure

1.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 505790's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 505790's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 88%.


Management Team

  • Satish Patel (55yo)

    CFO, Director of Finance & Additional Whole-time Director

    • Tenure: 0.8yrs
    • Compensation: ₹10.06m
  • Chirag Shukla

    Company Secretary & Compliance Officer

    • Tenure: 1.8yrs
    • Compensation: ₹1.77m
  • Harsha Kadam (53yo)

    MD & President of Industry

    • Tenure: 0.2yrs
  • Hardevi Vazirani (51yo)

    Vice President of Accounting

    • Tenure: 0yrs
  • Sameer Mathur (51yo)

    Chief Operations Officer

    • Tenure: 0yrs
  • Dharmesh Arora (52yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹36.30m
  • Harish Shah

    Head of Technology

    • Tenure: 0yrs
  • Seshan Iyer

    Head of MRO

    • Tenure: 8.5yrs
  • Santanu Ghoshal (52yo)

    Head of Human Resources & VP of Human Resources

    • Tenure: 0yrs
  • Vijay Chaudhury

    Head of Corporate Communications & Investor Relations

    • Tenure: 0yrs

Board Members

  • Klaus Rosenfeld (53yo)

    Non-Independent & Non-Executive Director

    • Tenure: 4.8yrs
  • Sampath Raman (60yo)

    Non-Independent & Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: ₹1.06m
  • Avinash Gandhi (81yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹1.75m
  • Renu Challu (67yo)

    Non-Executive & Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹1.34m
  • Satish Patel (55yo)

    CFO, Director of Finance & Additional Whole-time Director

    • Tenure: 0.8yrs
    • Compensation: ₹10.06m
  • Harsha Kadam (53yo)

    MD & President of Industry

    • Tenure: 0.2yrs
  • Dharmesh Arora (52yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹36.30m
  • Rakesh Jinsi (64yo)

    Non-Executive & Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹1.37m
  • Jürgen Ziegler (60yo)

    Additional Non-Executive & Non Independent Director

    • Tenure: 1.7yrs
  • Arvind Balajl

    Non-Executive & Independent Director

    • Tenure: 0.08yrs

Company Information

Schaeffler India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Schaeffler India Limited
  • Ticker: 505790
  • Exchange: BSE
  • Founded: 1962
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹135.151b
  • Shares outstanding: 31.26m
  • Website: https://www.schaeffler.co.in

Number of Employees


Location

  • Schaeffler India Limited
  • Amar Sadanand Tech Park
  • 15th Floor
  • Pune
  • Maharashtra
  • 411045
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505790BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994
SCHAEFFLERNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1994

Biography

Schaeffler India Limited manufactures and sells ball and roller bearings, and related components worldwide. It offers ball, cylindrical, spherical, and tapered roller bearings, as well as wheel bearings. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:39
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.