Buy Schaeffler India, targets Rs 2,120 and Rs 2,290: HDFC Securities

HDFC Securities has buy call on Schaeffler India with targets price of Rs 2,120 and Rs 2,290. Time period given by analyst is up to 3 months when the stock price can reach defined targets.

Schaeffler India, incorporated in the year 1962, is a mid cap company (having a market cap of Rs 29181.90 Crore) operating in Industrial Consumables sector.

Investment Rationale

Symmetrical Triangle breakout is seen on daily chart and the price breakout is accompanied by jump in volumes. The stock has been finding support on its 50 days EMAand is on the verge of breaking out from last 3 month’s price consolidation.

Indicators and oscillators like RSI, DMI and MACD have been showing strength in the current up move. Also, the stock is placed above all important moving average parameters, indicating uptrend on all time frames

Financials
For the quarter ended 31-12-2021, the company has reported a Standalone Total Income of Rs 1545.01 Crore, up 2.77 % from last quarter Total Income of Rs 1503.33 Crore and up 19.84 % from last year same quarter Total Income of Rs 1289.28 Crore. Company has reported net profit after tax of Rs 190.64 Crore in latest quarter.

Promoter/FII Holdings
Promoters held 74.13 per cent stake in the company as of 31-Dec-2021, while FIIs owned 5.16 per cent, DIIs 15.18 per cent.