1. At a Glance
Schaeffler India is the roller-bearing whisperer for India’s auto industry. It builds what makes machines go “vroom” without a tantrum. With a ₹64,950 Cr market cap and juicy ROCE of 25.7%, this is one German-engineered machine that just won’t stop spinning.
2. Introduction with Hook
Imagine if Apple decided to make gears. That’s Schaeffler — precision-obsessed, silently global, and embedded everywhere without you noticing. India’s auto boom needs bearings, and Schaeffler’s eating up that market like a Maruti on an expressway.
- CAGR of Net Profit (10Y): 20%
- ROCE: 25.7%, which screams “capital efficient” louder than your CA friend at tax time.
3. Business Model (WTF Do They Even Do?)
Schaeffler India manufactures high-precision components like:
- Ball and roller bearings
- Clutch systems
- Engine and transmission parts
- Chassis and machine components
The customers? Everyone from Tata Motors to Mercedes, Indian Railways to wind energy OEMs. If it moves and makes money, chances are Schaeffler’s somewhere inside.
They operate via:
- Industrial segment (wind, railways, textiles)
- Automotive OEM
- Automotive Aftermarket (think Koovers acquisition)
4. Financials Overview
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| Revenue | ₹8,076 Cr | ₹7,226 Cr | ₹6,867 Cr |
| EBITDA | ₹1,534 Cr | ₹1,327 Cr | ₹1,296 Cr |
| Net Profit | ₹1,015 Cr | ₹909 Cr | ₹879 Cr |
| OPM | 18% | 18% | 19% |
| EPS | ₹64.96 | ₹58.16 | ₹56.25 |
Takeaway:
A consistent profit-generating machine. Sales up 21% in 2 years. EBITDA margin solidly ~18%. Could teach some PSUs what consistency looks like.
5. Valuation
- CMP: ₹4,155
- PE Ratio: 64x
- Book Value: ₹344
- Price/BV: 12.1x
Fair Value Range Estimate (Based on DCF, PE multiples, Peer median)
- Conservative FV: ₹2,950
- Aggressive FV: ₹4,650
- Realistic FV Range: ₹3,300 – ₹4,400
Yes, it’s priced like a Mercedes. But you’re getting Mercedes engineering, too.
6. What’s Cooking – News, Triggers, Drama
- May 2025: ₹1,700 Cr investment into new Shoolagiri plant – capacity expansion madness.
- Koovers Acquisition: Enters B2B digital auto aftermarket.
- EV Push: Launched planetary gear systems for hybrids.
- Skilling Initiative: Wants to train the EV mechanics of tomorrow (and own their parts shelf).
- Anti-Counterfeit War: If fake bearings were drugs, Schaeffler’s running the NCB.
7. Balance Sheet
| Particulars | FY24 | FY23 | FY22 |
|---|---|---|---|
| Equity | ₹31 Cr | ₹31 Cr | ₹31 Cr |
| Reserves | ₹5,352 Cr | ₹4,784 Cr | ₹4,255 Cr |
| Borrowings | ₹42 Cr | ₹51 Cr | ₹57 Cr |
| Total Assets | ₹6,898 Cr | ₹6,269 Cr | ₹5,727 Cr |
Highlights:
- Virtually debt-free
- Reserves climbing like it’s on creatine
- Capex visible in CWIP: ₹449 Cr in FY24
8. Cash Flow – Sab Number Game Hai
| Cash Flow | FY24 | FY23 | FY22 |
|---|---|---|---|
| Operating | ₹884 Cr | ₹900 Cr | ₹751 Cr |
| Investing | -₹71 Cr | -₹611 Cr | -₹535 Cr |
| Financing | -₹419 Cr | -₹386 Cr | -₹257 Cr |
| Net Flow | ₹394 Cr | -₹97 Cr | -₹41 Cr |
Takeaway:
Free Cash Flow positive. Most investments going into capacity — not yachts or yachts for execs’ pets.
9. Ratios – Sexy or Stressy?
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| ROCE | 26% | 27% | 29% |
| ROE | 19% | 19% | 25% |
| Debt/Equity | 0.01 | 0.01 | 0.01 |
| OPM | 18% | 18% | 19% |
Verdict:
Sexy. No red flags. ROCE that would make Buffett blush.
10. P&L Breakdown – Show Me the Money
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| Revenue | ₹8,076 Cr | ₹7,226 Cr | ₹6,867 Cr |
| Expenses | ₹6,803 Cr | ₹5,899 Cr | ₹5,571 Cr |
| EBITDA | ₹1,534 Cr | ₹1,327 Cr | ₹1,296 Cr |
| Net Profit | ₹1,015 Cr | ₹909 Cr | ₹879 Cr |
Trends:
Growth without tantrums. No erratic zigzags. You could practically plot a ruler along the EPS chart.
11. Peer Comparison
| Company | CMP (₹) | PE | ROCE | OPM | Div Yld |
|---|---|---|---|---|---|
| Bosch | 36,525 | 53x | 21.1% | 12.8% | 1.4% |
| Uno Minda | 1,073 | 66x | 18.8% | 11.2% | 0.2% |
| Bharat Forge | 1,214 | 57x | 13.1% | 17.8% | 0.7% |
| Endurance Tech | 2,623 | 45x | 18.2% | 13.4% | 0.4% |
| Schaeffler India | 4,155 | 64x | 25.7% | 18.4% | 0.67% |
Observation:
Among the top in ROCE and margins. Valuation matches performance. Uno Minda is its closest mirror, but with slightly weaker financials.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 74.13% (tight German grip)
- FII Holding: 4.57%
- DII Holding: 15.97%
- Public Holding: 5.31%
- No. of Shareholders: ~71,705
- CEO: Harsha Kadam (reappointed till 2027)
- Recent Moves: Capacity boost, EV push, aftermarket expansion
Bonus: Dividend payout has grown from 8% to 45% in 10 years. No drama, just engineering dividends.
13. EduInvesting Verdict™
Schaeffler India is the quietly competent, overachieving German transfer student in India’s auto classroom. It doesn’t make noise. It just gets top marks — consistently. If India’s auto boom is a Bollywood movie, Schaeffler’s the silent stunt double doing the real heavy lifting.
It’s not a “get-rich-quick” penny stock. It’s the “buy good engineering, sleep well” type of long-term hold. For those who like machines that last, margins that stay, and managements that don’t self-combust.
Metadata
– Written by EduInvesting | July 14, 2025
– Tags: Schaeffler India, Auto Components, MNC Stocks, Bearings, Precision Engineering, German Companies in India, EV Supply Chain, ROCE Kings, Long-Term Compounders
