1 SCHAEFFLER share price target reports by brokerages below. See what is analyst's view on SCHAEFFLER share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We maintain our expectation of a 30.9% contraction in sales for CY20E due to the Covid-19 pandemic despite Q1CY20 being better than our expectations, because we believe Q2 and Q3CY20E will be more impacted. We maintain our CY22E EPS estimates of Rs 151.40 and Net Margin of 9.7%. At a PE multiple of 32x, we maintain our BUY rating on Schaeffler India with a target price of Rs. 4,845 which presents an upside of 47% from today’s closing price of Rs. 3,300.
We have factored in a 30.9% contraction in sales for CY20E due to the Covid-19 pandemic. Thereafter we are optimistic of a slow recovery and normalization of business in CY21E and CY22E. We have forecasted a Revenue growth of 3.9% CAGR over CY19-22E and derived a revenue of Rs. 4,891.20 Cr for CY22E. We expect the CY22E EPS to be Rs. 151.40 and the PAT margin to be 9.7%. We have assigned a P/E multiple of 32x and arrive at a Target Price of Rs. 4,845 which is an upside of 45% from today’s price of Rs. 3,340. We initiate coverage on Schaeffler India Ltd with a BUY rating over an investment horizon of 24-30 months.
However, price hikes and softening raw material should drive a recovery in margins. The merged entity has multiple growth levers: i) product launches; ii) annual capex of ~EUR40mn (twice the earlier run rate) and introduction of new technologies; and iii) potential synergies from the merger. Hence, we estimate Schaeffler’s PAT CAGR will expand to 25% and ROCE by 500bps over CY18–20. We assign 30x PE while rolling over the valuation to Q2CY20E EPS. Maintain ‘BUY’ with a TP of INR6,175.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
DISCLAIMER: Information is provided "as is" and solely for informational purposes, not for trading purposes or advice, and may be delayed. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and FrontPage will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.