This Auto Ancillary Mid Cap Stock Has Declared A Dividend Of 1200%, Sharekhan Recommends

Schaeffler India Ltd in an exchange filing notified about the company board's approval of the audited financial results and recommendation of dividend payment. Plus based on its recent performance a top stock broking firm feels that buying stock of this mid cap company will earn good returns. Here are the details.

Dividend details of Schaeffler India Ltd

Schaeffler India Limited's board of directors in its meeting recommended a dividend. "The board has recommended a dividend for the year ended December 31, 2022 at the rate of Rs 24 per equity share of face value Rs 2 each.

Further the details of payout of the dividend and record date were shared in the exchange filing. "The dividend for the year end December 31, 2023 if declared by the shareholders at the ensuing annual general meeting shall be paid within the 30 days from the date of AGM. And the closure of Register of Members and Share Transfer Books of the company from Wednesday, April 12, 2023 to Tuesday, April 18, 2023 both days inclusive, for the purpose of 60th Annual General Meeting and identifying the list of members eligible for the payment of dividend."

Should you buy the stock of Schaeffler India Ltd?

Sharekhan, a leading broker recommends investors to buy the shares of Schaeffler India Ltd as it believes the stock price will rally. The brokerage report, notified that the company performance was good and explained its reasons for arriving at target price. "Post reporting the decent performance in Q3FY2023, the company has increased its capex programme and guided for a capex of Rs. 1,500 crore over CY2022-CY2024E compared to the earlier plan of Rs. 1,000 crore to Rs. 1,200 crore. Increased capex would improve the localisation and, hence, profitability on the shift in opex (outsourced products) to capex. We continue to remain positive on Schaeffler India Ltd due to consistent performance, rising export, increasing localisation, positive outlook on the domestic PV segment, traction in the railway business, and strong presence in the after market segment. We maintain our Buy rating on the stock with a TP of Rs. 3,328. The stock trades at a P/E multiple of 38.9x and EV/EBITDA multiple of 24.4x its FY2025 estimates."

About Schaeffler India Ltd

Schaeffler has been present in India for over 50 years. With 3 well known product brands LuK, INA and FAG, 4 manufacturing plants and 8 sales offices, Schaeffler has a significant presence in India. Schaeffler is among the largest Industrial and Automotive supplier with sales of Rs 68.7 billion in 2022 and around 3,190 employees. The manufacturing plants in Maneja and Savli (Vadodara), produce a vast range of ball bearings, cylindrical roller bearings, spherical roller bearings and wheel bearings that are sold under the brand name of FAG. Its market capitalisation is Rs 46,011.89 crore.

Share price movement of Schaeffler India Ltd

The last traded market price of stock of Schaeffler India Ltd is Rs 2943.75 per share. Its 52-week high and low is Rs 3,968.75 per share and Rs 1,660 per share respectively. In one-year the stock has gone up by 64.88%.

Disclaimer:

The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.