Schaeffler India Receives Quality Grade Upgrade Amid Strong Financial Performance

Schaeffler India, a prominent player in the bearings industry, has recently undergone an evaluation revision reflecting its strong financial performance. The company has demonstrated robust sales growth over the past five years, with a notable rate of 13.12%. Additionally, its EBIT growth during the same period stands at an impressive 20.35%, showcasing effective operational efficiency.
The company's financial health is further underscored by its average EBIT to interest ratio, which is at a solid 100.00, indicating strong earnings relative to interest obligations. Schaeffler India maintains a low net debt position, with a debt to EBITDA ratio that suggests minimal leverage, complemented by a net debt to equity ratio of 0.00. This positions the company favorably compared to its peers, who may not exhibit the same level of financial stability.

Schaeffler India's return on capital employed (ROCE) averages 29.25%, while its return on equity (ROE) is at 18.72%, both metrics reflecting efficient use of capital. The company's dividend payout ratio stands at 44.70%, indicating a commitment to returning value to shareholders.

In comparison to the broader market, Schaeffler India has shown resilience, particularly over longer time frames, outperforming the Sensex significantly over three and five years. This evaluation adjustment highlights the company's strong fundamentals and competitive position within the bearings sector.