Schaeffler India (SCHAEFFLER)

FairStock Score: 53/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Schaeffler India looks like a high-quality auto components business. As a Buffett/Graham investor, I start with returns on capital: ROE 21.64%, ROCE 29.79%, and debt/equity 0.01. That combination suggests a durable competitive moat, capital discipline, and little financial risk. Piotroski F-Score 8/9 confirms balance-sheet strength. Free cash flow of ₹949 Cr and latest quarterly net profit of ₹328 Cr on sales of ₹2,643 Cr show real cash generation, not accounting mirage. Promoter holding of 74.13% aligns owners. Five-year revenue CAGR of 20.09% and sales growth of 17.30% indicate a growing franchise. But Graham would pause at the price. At ₹4,043.20, P/E is 50.50, P/B 10.30, EV/EBITDA 32.17, and dividend yield only 0.87%. My DCF intrinsic value is ₹3,242.19, so the market is paying roughly 25% above my estimate. That leaves no margin of safety. Profit growth of 13.00% trails sales growth of 17.30%, hinting at pressure or mix/cost issues. FairStock Score 53/100 is mixed. The business is wonderful; the price is not. I would wait for either a meaningful correction toward ₹3,242 or evidence that profits can grow fast enough to justify the multiple. With EV/EBITDA at 32.17 and P/B at 10.30, expectations are already high. I like the low debt and high ROCE, but I cannot pay up for perfection. Until then, this is a watchlist stalwart, not a buy. Category: Stalwart.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer