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Sharekhan recommends buying Schaeffler India with a target price of Rs 10,678.
In their research report dated January 04, 2022, Sharekhan suggested a buy rating on Schaeffler India with a target price of Rs 10,678.
SIL is predicted to have a solid quarter in Q4CY21E, with record revenues and profits driven by order wins and improved margins. Given its parent company’s background, exports are a high-growth sector for SIL. Revenue and EBITDA growth would be aided by greater localisation and a focus on market share gains in the future. During the period CY2020-CY2022E, we anticipate a 64 percent CAGR in profits. The stock is now trading at a P/E ratio of 37.9x and an EV/EBITDA ratio of 22.4x its CY2022E projections.
With a revised PT of Rs. 10,678, we maintain our Buy recommendation on Schaeffler India Limited (SIL), owing to a good outlook for its automotive and industrial industries, as well as stronger multiples.
Moneycontrol.com is the source for this information.
Schaeffler India reports Rs1708 million in Q3 profit; stock rises 3%.
Schaeffler India Limited, a leading industrial and automotive supplier, stated on Thursday that its board of directors has accepted the third quarter (Q3) and nine monthly (9MCY21) results for the quarter ended September 30, 2021. Along with that, the board authorised a stock split and a target dividend payment ratio.
Total revenue from operations (net) for the third quarter (Q3) was Rs14,876 million, up 32.7 percent from the same quarter in 2020 and 20.7 percent from the previous quarter (Q2’21).
PBT (profit before extraordinary items) for the third quarter (Q3) was Rs2,296 million, up 50.3 percent over the same period in 2020 and 34.6 percent from the previous quarter (Q2’21). The PBT margin for the quarter was 15.4 percent, compared to 13.6 percent in the same quarter of 2020. The company’s net profit for the quarter was Rs1708 million, with a margin of 11.5 percent.
Schaeffler India Ltd was trading at Rs7,568 per piece at roughly 10.18 a.m. on the BSE, up Rs212.5 per piece or 2.89 percent from its previous close of Rs7,355.50 per piece.
For the calendar year 2021 (nine months) from January to September. For the nine-month period, total income from operations (net) was Rs40,373 million, up 62.3 percent over the same period in 2020.
For the first nine months of the year, PBT (profit before extraordinary items) was Rs5,863 million, up 184.4 percent over the same time in 2020. The net profit for the quarter totaled Rs4,385 million, with a net profit margin of 10.9 percent.
Announcement of the stock split
Subject to shareholder agreement, the Board of Directors approved the subdivision of each equity share with a face value of Rs10 into five equity shares with a face value of Rs2.
Existing shareholders will get five new shares for every one share they presently possess under the 5 for 1 stock split. The stock split was implemented to attract more investors to participate in the stock market and to increase the liquidity of equity shares.
Policy on dividend distribution
The Board of Directors also established a target dividend payout ratio of 30 percent to 50 percent of annual standalone profits after tax (PAT), subject to relevant rules and regulations, to be declared by the firm from time to time. The firm has implemented a progressive dividend policy, with the goal of maintaining or increasing the payout each year based on financial success and free cashflow generation, according to the corporation.
Under the circumstances and situations outlined in the dividend distribution policy, the firm will attempt to evaluate a total dividend payout ratio as shown above.
“We’ve had a solid performance for the fourth quarter in a row. Despite considerable input cost challenges, the performance displayed in the first half of the year improved in the third quarter. Our business segments – automotive technologies, automotive aftermarket, and industrial – have all performed admirably, solidifying our position as the chosen technology partner. However, we are seeing some headwinds as a result of the worldwide chip shortage and the supply chain disruptions that have resulted, which we are constantly watching. Harsha Kadam, Managing Director, stated, “Our sustained focus on countermeasures and deeper client relationships has generated excellent outcomes.”
“The stock split would stimulate greater involvement of investors and boost the liquidity of equity shares on the stock market,” he said of the corporate moves. We feel that the policy’s publication of a target dividend payment ratio is evidence of long-term wealth development.”
IIFL is a source of information.
Stocks to Watch | Schaeffler In the short term can provide double-digit gains.
Vinay Rajani, HDFC Securities, has recommended this stock.
Schaeffler India | LTP: Rs 6,989 | Target price: Rs 8,150 | Stop loss: Rs 6,400
On the stock’s daily chart, the breakout of the flag pattern can be noticed. It has broken out of the price consolidation of the previous five weeks.
With a spike in volumes in July, it marked a multi-year breakthrough. On the weekly charts, the indicator and oscillator setup has been positive.
Short-term moving averages are above medium- and long-term moving averages.
On short to medium-term charts, the Nifty MNC index appears to be quite robust. On the weekly and monthly charts, it has been forming higher tops and higher bottoms.
moneycontrol.com is the source for this information.
July 23, 2021
After a strong second quarter, Schaeffler India’s stock hit a new high thanks to positive analyst ratings.
Analysts were positive on Schaeffler India Ltd., highlighting the company’s focus on localisation and technical innovation, as well as important order wins in the commercial vehicle and tractor industries, among other factors.
The net profit and sales of the ball and roller bearing manufacturer fell sequentially in the quarter ended June. Earnings and top line, on the other hand, increased over the previous year. The fiscal year for Schaeffler India is January to December.
Standalone, QoQ Results for the June Quarter
- Operational revenue was Rs 1,232.89 crore, down from Rs 1,316.8 crore.
- The net profit was Rs 128.13 crore, down from Rs 139.54 crore the previous year.
- Total costs were Rs 1,075.19 crore, compared to Rs 1,152.73 crore the previous year.
In the afternoon session on Friday, the company’s shares rose more than 11.69 percent to Rs 6,490 per share. The stock has risen about 41% so far this year and 74 percent in the last 52 weeks.
According to Bloomberg statistics, eight of the ten analysts following the business recommend a ‘buy,’ while two urge a ‘hold.’ Analysts’ consensus price objective for the stock is about the current market price.
The following are the opinions of brokerages on Schaeffler India’s June-quarter results.
- With a 12-month price objective of Rs 7,720, the analyst recommends buying.
- Automotive technology sales and enhanced exports drove a strong performance in the June quarter.
- To fuel growth, maintain a steady focus on localisation, increasing content per vehicle, and a strong focus on technical innovation.
- Key victories for clutch and gearbox systems in the commercial vehicle and tractor segments boded well for future growth.
- Demand will continue to be strong, fueled by e-mobility products.
- With increased localization, the company is well positioned as a mobility play.
- Recommends a ‘buy’ recommendation, with a 12-month price objective of Rs 7,200 per share.
- Earnings increase was boosted by non-mobility segment resilience and exports.
- Margin growth will be aided by a better sales mix and cost recovery.
- Order victories in the United States and throughout the world are expected to keep sales growing.
For CY20-23, the growth trend is expected to accelerate.
- The growth rate seen in the June quarter is expected to continue.
Kotak Institutional Equities
- With a fair value of Rs 5,950, recommends ‘add’.
- Considerable growth prospects, fueled by a pipeline of new items and the possibility for strong export growth.
- Expects a significant increase in return on investment and excellent free cash flow generation.
- Steel price increases were passed on to OEMs, resulting in higher gross margins.
- Over the period CY2020-23E, Schaeffler India is expected to have a 22 percent revenue CAGR.
- Exports, new product offerings in new markets, important order wins in the CV and tractor segments, localization initiatives, and a focus on technical innovation will all contribute to growth.
bloombergquint.com is the source for this information.
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