Few stocks in the equity markets can provide shareholders with consistent returns. As share price volatility is common, it may fall deeply or rise rapidly on any given day. However, Maintaining lower volatility and a consistent rise in share price for years will be difficult for most stocks, but not for Schaeffler India.
Shares of Schaeffler have grown consistently in the last 5 years from around ₹979.75 to ₹3,186.95, delivering a return of 225 percent. Even during the pandemic, the stock lost only 15.10 percent between March and April 2020 and quickly rebounded, rallying 43 percent by December 2020, this came at a time when many other stocks are still trading near to their 52-week lows. Only twice in the last five years, the stock has given negative returns to its shareholders.
Schaeffler India. is a small-cap Auto stock with a market capitalization of ₹49,105.9 crore. The company is engaged in the development, manufacturing, and distribution of high-precision roller and ball bearings, engine systems and transmission components, chassis applications, clutch systems, and related machine-building manufacturing activities.
Since the beginning of the year, the stock has been moving higher, rising from ₹1,756.88 levels to ₹3,141.70, delivering a return of 78.87 percent. In Friday's trade, the stock hit an all-time high of ₹3,228.5 on the BSE. In the last one year it delivered a return of 120 percent to its shareholders.
The stock gained 35.97% in the last three months to ₹3,141.70 from ₹2,310.50. Over the last three years, the stock generated a return of 286.65%. In the last decade, this multi-bagger stock has risen by 787.28 percent, from around ₹354.85 to the current level of ₹3,141.70.
The 52-week high and low prices for the stock were Rs. 1,415 and Rs. 3,228.5 respectively. Taking Friday's closing price into consideration, it has risen 121.97% from its 52-week low.
At the prevailing price, the stock traded at 61.82 times its trailing 12-month EPS of ₹50.82 per share and 13.01 times its book value.
The company posted a 76.26% jump in its standalone net profit to ₹225.8 crore for the June-ending quarter as against ₹128.1 crore in the corresponding quarter of the preceding fiscal.
The company's net profit has been steadily increasing in recent quarters. It recorded a net profit of 170.8 crore in the September 2021 quarter, 190.6 crore in the December 2022 quarter, and 207.1 crore in the previous quarter.
The company follows the January-December financial year in its accounting system. It reported a record revenue of ₹1,765 crore in Q1, compared to 1,245.8 crore in the same quarter last year. The operating profit increased 55.33% to ₹321.7 crore from ₹207.1 crore.
The EBITDA margin rose to 18.40% in Q1FY23 as against 42.37% in the corresponding quarter of last year. While the company grew its EBIT margin by 4.53% and net profit margin by 46% over the last 12 months.
Further, it has a return on equity of 14.21% and a ROCE of 20.55% (5-year average) respectively. According to data from Trendlyne, the company has zero debt.
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