Schaeffler India Receives Upgraded Stock Call from MarketsMOJO, Indicating Positive Outlook.

Schaeffler India, a leading player in the bearings industry, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on November 11, 2024.
The decision to upgrade the stock is based on several factors. Schaeffler India has shown high management efficiency with a ROE (Return on Equity) of 16.48%. Additionally, the company has a low Debt to Equity ratio, indicating a healthy financial position.

Moreover, Schaeffler India has displayed a consistent long-term growth with its operating profit growing at an annual rate of 16.98%. The stock is also currently in a Mildly Bullish range, with technical trends showing improvement from Sideways on November 11, 2024. Factors such as RSI, Bollinger Band, and KST are all indicating a bullish outlook for the stock.

Furthermore, the company has a high institutional holding of 20.32%, which suggests that these investors have better capabilities and resources to analyze the fundamentals of the company.

However, the company's recent results for September 2024 have been flat, with its CASH AND CASH EQUIVALENTS(HY) at its lowest at Rs 1,112.13 crore and DEBTORS TURNOVER RATIO(HY) at its lowest at 5.70 times.

Despite its high ROE of 18.7, Schaeffler India currently has a very expensive valuation with a Price to Book Value of 11.2. However, the stock is trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 27.38%, while its profits have only risen by 2.9%. This has resulted in a PEG ratio of 20.8 for the company, indicating a slightly overvalued stock.

Overall, with its upgraded stock call and positive indicators, Schaeffler India seems to be a promising investment option in the bearings industry. However, investors should carefully consider the company's financials and valuation before making any investment decisions.