Sharekhan has given Hold recommendation for Schaeffler India with a target price of Rs. 3328 in its research report issued on Oct 19, 2022
Sharekhan’s research report on Schaeffler India
During Q3CY2022, the company’s revenue was slightly below expectations, which was recovered by higher-than-expected EBITDA margin. The company continues to grow on a q-o-q basis. Exports is a high-growth area for SIL, given the company’s strong relationship with the parent with leading global OEMs and tier-I suppliers. Greater localisation and focus on market share gains would aid revenue and EBITDA growth going forward. We expect its earnings to report a 35.2% CAGR during CY2021-CY2023E.