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Schaeffler India Limited

SCHAEFFLER.NS
60
Auto - Parts · Consumer Cyclical
Price
₹4035.20
-1.10 (-0.03%)
Market Cap
₹630.72B
Exchange
National Stock Exchange of India
Winston Score
60
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 9, 2026 · filings through Jun 30, 2026

Schaeffler India Limited makes precision mechanical parts used inside engines, transmissions, and wheels. Its core products include bearings, clutch systems, and linear motion components sold to automakers, industrial machinery companies, and aftermarket repair shops. The company is a subsidiary of Germany's Schaeffler Group, one of the largest bearing and automotive component manufacturers in the world.

Schaeffler India earns revenue by selling these parts directly to vehicle manufacturers like Maruti Suzuki, Tata Motors, and two-wheeler brands, as well as to industrial customers and through its aftermarket distribution network. It operates primarily in India, with manufacturing plants in Pune and Vadodara, and benefits from its parent company's global engineering expertise and technology, which smaller local rivals struggle to match. The key growth driver is India's expanding auto sector and rising industrial activity, though the company faces risk from any slowdown in vehicle production or a faster-than-expected shift to electric vehicles, which require fewer traditional mechanical components.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+13.3% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

74.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$15.1B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Schaeffler India Limited is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 156.3M (2021) → 156.3M (2025)

Score breakdown

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Quality

Gross Margin
29.7%
Modest — 29.7% gross margin
Operating Margin
14.8%
Healthy — 14.8% operating margin
ROCE
6.6%
Weak — 6.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+19.7%
Fast-growing sales (+19.7% YoY)
EPS YoY
+23.7%
Earnings growing fast (+23.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
46%
Weak — only 46% of profit becomes cash
FCF Margin
3.8%
Thin free cash flow (3.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
303.29x
Comfortably covers interest (303.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
50.3x
Expensive — P/E 50.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+9.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (50.3 → 40.8)

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Dividends

Dividend Yield
0.87%
Small dividend — 0.87% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+3.7%
Dividend growing modestly (3.7% YoY)

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