Rs 26/Share Dividend After 1:5 Stock Split: Auto Stock Falls 6.83% After Declaring Dividend, Buy?

Schaeffler India shares witnessed a decline of 2.66% in last 1-week. Current market price of Schaeffler India stock on BSE is Rs 2853.05 apiece with intraday dip of 0.44%. Schaeffler India shares have tanked 6.83% after it recommended Rs 26/share dividend on February 16, 2024. However, the small cap scrip gained 174% in last 3-years. The company will hold its Annual General Meeting (AGM) on April 26, 2024 to approve the dividend. Meanwhile, brokerage firm Sharekhan has recommended buy rating to Schaeffler India shares with target price of Rs 3510 per share. 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 Stock Split In 2022: Schaeffler India had earlier split face value 1 time since February 8, 2022. The company last split the face value of its shares from Rs 10 to Rs 2 in 2022. The share has been quoting on an ex-split basis from February 8, 2022, as per the BSE filing.

Schaeffler India Declared Dividend On Feb 16, 2024: 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."

Schaeffler India To Hold AGM On April 26: The Feb 16 BSE filing stated, "approved convening of 61st AGM of the Company scheduled to be held on Friday, April 26, 2024, through Video Conferencing ('VC') / Other Audio Visual Means ('OAVM') and the closure of the Register of Members and Share Transfer Books of the Company from Saturday, April 20, 2024, to Friday, April 26, 2024, both days inclusive, for the purpose of 61 st AGM and identifying the list of members eligible for the payment of Dividend."

Sharekhan Assigns Buy Call: According to Sharekhan, "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."

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.

Disclaimer:

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, 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 check with certified experts before taking any investment decision.