Rs 26/Share Dividend In Q4, 180% Gain In 3-Yrs: Buy Zero-Debt Burden Stock, TP Rs 3510: Sharekhan

Leading brokerage firm Sharekhan has recommended buy call to small cap stock from the auto components & equipment industry, Schaeffler India with target price of Rs 3510 per share. Current market price of Schaeffler India shares on BSE is Rs 2918.60 apiece with intraday decline of 0.43%. If you buy Schaeffler India stock at current market price of Rs 2918.60 apiece, you can fetch potential return of 20.29%. Schaeffler India shares offered shareholders return of 205% in last 1-year. Check details below:

Schaeffler India Shares Performance & Return: The 52-week high price of Schaeffler India shares on BSE is Rs 3719.20 apiece and 52-week low price is Rs 2616.05 apiece, respectively. The company has a market capitalisation of Rs 45,618.79 crore. Schaeffler India shares gained 1% in last 1-week, declined 9% year-to-date, fell over 2% in last 1-year, gained 59% in last 2-years, and offered rally of 180% in last 3-years. In last 10-years, the scrip soared 738%.

Schaeffler India Interim Dividend In Q4: As per the BSE filing of the company dated February 16, 2024, "Recommended a Dividend of Rs. 26/- per Equity Share of face value of Rs. 2/- each. The Dividend for the year ended December 31, 2023, if approved by the Shareholders at the ensuing Annual General Meeting (AGM) shall be paid within 30 days from the date of AGM."

Sharekhan Recommends Buy Call: According to the analyst, "We retain our Buy rating on the stock with revised PT of Rs 3510 in anticipation of sustenance in domestic demand, success in high-value EV business, increase in localisation, inorganic growth opportunity and expectation of improvement in the aftermarket segment. Stock trades at P/E multiple of 36.1x and EV/EBITDA multiple of 23.3x its CY25 estimates."

Schaeffler India Q4 Results: The company's PBT (before exceptional items) for the quarter (Q4 CY2023) declared at INR 3,005 million, 2.9% lower than the corresponding quarter of 2022. PBT margin for the quarter stood at 16.2%, compared to 17.2% during the corresponding quarter of 2022. Net profit for the quarter was INR 2,174 million and net profit margin stood at 11.7% compared to 12.9% during the corresponding quarter of 2022.

Revenue from operations (net) for the year was INR 72,261 million, higher by 5.2% than the corresponding period of 2022. PBT (before exceptional items) for the year was INR 12,284 million, higher by 5.7% than the corresponding period of 2022. PBT margin for the year stood at 17.0%, compared to 16.9% during the corresponding period of 2022. Net profit for the year was INR 9,090 million and net profit margin stood at 12.6% compared to 12.8% during the corresponding period of 2022."

Commenting on the results, Mr. Harsha Kadam, Managing Director, said, "Our balanced business portfolio, backed by conituned momentum in our key sectors helped sustain revenues for the quarter. Despite the adverse export mix, our annual performance was aided by our domestic businesses and trajectory of business wins across sectors."

Schaeffler India About: Schaeffler with four plants and 11 sales offices has significant presence in India with three major widely known product brands - FAG, INA and LuK. The manufacturing plant in Vadodara, Gujarat was set up in 1964 and produces a vast range of ball bearings, cylindrical roller bearings, and spherical roller bearing and wheel bearings and sold under the brand name of FAG. The second plant in Vadodara at Savli produces next generation deep groove ball bearings and large size roller bearings also sold under the name of FAG, according to its official website.