BSE 200 Auto Stock: Rs. 28 Dividend Recommended; Consider Fresh Positions?

Schaeffler India offers precise engineering solutions and a 75-year worldwide experience in motion technology innovation to the Indian market. Schaeffler provides cutting-edge products, technology, and solutions for renewable energy, electric mobility, CO2-efficient drives, and chassis. With four production facilities in India (Pune, Savli, Maneja, and Hosur), three research and development facilities, eight sales offices, and a robust industrial and automotive aftermarket network, Schaeffler India guarantee its customers' access to products and services across the country. Schaeffler is one of the top motion technology companies in India, having been there for more than 60 years and employing more than 3,000 dedicated employees.

Schaeffler India Dividend

The Board of Directors "Recommended a Dividend of Rs. 28/- per Equity Share of face value of Rs. 2/- each. The Dividend for the year ended December 31, 2024, if approved by the Shareholders at the ensuing Annual General Meeting (AGM) shall be paid within 30 days from the date of AGM. Approved Notice convening of 62nd AGM of the Company scheduled to be held on Wednesday, April 30, 2025, at 3:30 p.m. IST through Video Conferencing ('VC') / Other Audio Visual Means ('OAVM')," said Schaeffler India in a stock exchange filing.

Schaeffler India Financials

Schaeffler India's net profit improved 13.20% to Rs 237.28 crore in the December 2024 quarter compared to Rs 209.61 crore in the December 2023 quarter. Compared to Rs 1874.55 crore in Q3FY24, sales increased 13.95% to Rs 2136.06 crore in Q3FY25. The net profit for the entire year surged by 4.43% to Rs 938.86 crore in December 2024 compared to Rs 899.02 crore in December 2023. Compared to the previous year, which concluded in December 2023, sales increased 13.54% to Rs 8232.38 crore in the year ended in December 2024. EBITDA climbed from Rs 324.1 crore in Q4FY23 to Rs 370.2 crore in the current quarter, which is a 14.2% YoY improvement. The EBITDA margin, however, was steady at 17.3%.

Mr. Harsha Kadam, Managing Director and Chief Executive Officer, said, " I am pleased to share that we sustained double-digit YoY growth momentum consecutively for the third quarter, resulting also in a double digit growth of our annual performance. This was aided by our focus on new business wins and excellence in quality and delivery. We remained resilient despite a challenging market environment. Our focus on prudent financial management over the year will continue as we navigate the external headwinds entering 2025. Our consistent approach for dividend payments, reiterates our commitment to providing sustainable, long-term value to our shareholders."

Schaeffler India Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "SCHAEFFLER is currently trading at ₹3,081 and has been under consistent selling pressure since July 2024. The stock is forming lower lows and lower highs, indicating a sustained bearish trend. It has declined 38% from its all-time high and breached a critical support level at ₹3,184. Additionally, it is trading below the 20-day, 50-day, and 200-day EMAs, reinforcing a bearish outlook. The RSI stands at 44.22 and continues to trend downward, signaling increasing selling momentum."

"The ₹2,825-₹2,597 range is expected to act as a strong support zone, with a potential rebound if the stock stabilizes. A breakdown below ₹2,597 could lead to further downside. Meanwhile, Schaeffler India shares rose 3.6% after Q4 profit grew 15% YoY, driven by a 14% rise in auto-tech revenue. The company also announced a ₹28 dividend per share. Traders should exercise caution and wait for price confirmation before considering fresh positions," Mandar Bhojane further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.