Schneider Electric Infrastructure Sees Adjustment in Evaluation Amid Technical and Financial Trends

On 19 Nov 2025, the company’s Mojo Score registered at 42.0, with a corresponding grade adjustment reflecting a shift in its technical outlook. The technical trend transitioned from mildly bullish to mildly bearish, influenced by weekly and monthly MACD and KST indicators signalling mild bearishness. Bollinger Bands on both weekly and monthly charts also indicated bearish tendencies, while daily moving averages maintained a mildly bullish stance. Other technical measures such as RSI showed no clear signals, and the On-Balance Volume (OBV) presented a mixed picture with weekly bearishness contrasting monthly bullishness.

From a valuation perspective, Schneider Electric Infrastructure is positioned with an Enterprise Value to Capital Employed ratio of 20.5, which is considered very expensive relative to its sector peers. Despite this, the stock trades at a discount compared to the average historical valuations of its competitors. The Price/Earnings to Growth (PEG) ratio stands at 3, reflecting the relationship between its price, earnings, and growth rate. Over the past year, the stock has generated a return of 9.07%, while profits have increased by 24.6%, indicating a divergence between price performance and earnings growth.

Financially, the company reported flat performance in the second quarter of FY25-26, with a Return on Capital Employed (ROCE) at 31.60% for the half-year, which is among the lower levels observed recently. The average Debt to Equity ratio remains high at 4.10 times, underscoring the company’s leveraged position. However, management efficiency is notable, with a ROCE of 27.65% signalling effective capital utilisation. Operating profit has expanded at an annual rate of 67.79%, supporting a narrative of healthy long-term growth despite short-term stagnation.

Examining the stock’s price movements, Schneider Electric Infrastructure closed at ₹767.00, down 2.95% from the previous close of ₹790.30 on the day of the evaluation. The 52-week price range spans from ₹516.70 to ₹1,055.00, indicating significant volatility over the past year. Short-term returns over one week and one month were negative at -6.69% and -6.65% respectively, contrasting with the Sensex’s positive returns of 0.96% and 0.86% over the same periods. Year-to-date, the stock’s return was marginally positive at 0.17%, while the Sensex recorded 8.36%. Over longer horizons, the stock has outperformed the benchmark, delivering 380.28% over three years and 807.16% over five years, compared to the Sensex’s 37.31% and 91.65% respectively.

Ownership remains concentrated with promoters holding the majority stake, which often suggests strategic alignment with long-term company objectives. The stock’s consistent returns over the last three years, coupled with operating profit growth and management efficiency, provide a nuanced picture for investors weighing the company’s prospects.

In summary, the adjustment in Schneider Electric Infrastructure’s evaluation is primarily driven by a shift in technical indicators towards a more cautious stance, combined with valuation metrics that suggest the stock is priced at a premium relative to capital employed. Financial trends reveal a mixed scenario with flat recent results but strong long-term profit growth and efficient capital use. These factors collectively inform the revision in its score, offering investors a detailed framework to analyse the stock’s current position within the Heavy Electrical Equipment sector.

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