Multibagger alert: This ball and roller bearing company has rolled out multibagger returns for its shareholders!

Multibagger alert: This ball and roller bearing company has rolled out multibagger returns for its shareholders!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-08-24T15:37:46+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.85 lakh today. 

Schaeffler India Ltd, an S&P BSE 500 company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 778.94 on 26 August 2020 to Rs 3000.15 on 23 August 2022, an increase of 285% in the two-year holding period. An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.85 lakh today. 

With these stellar returns, the company has generated an alpha of 227% over the S&P BSE 500 index. In the last two years, the index has climbed from the level of 15,191.47 on 26 August 2020 to 24,065.79 on 23 August 2022, a rally of 58.4 in the two years. 

Schaeffler India provides high-precision components and systems in engine, transmission, and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications. The company provides innovative technologies, products, and services for CO2-efficient drives, electric mobility, Industry 4.0, digitalization, and renewable energies. 

In the recent quarter of Q1FY23, on a consolidated basis, the company’s top line increased by 41.85% YoY to Rs 1748.83 crore. Similarly, the bottom line increased by 76% YoY to Rs 225.75 crore. 

The company is currently trading at a TTM PE of 59.04x, as against the industry PE of 52.18x. In FY22, the company delivered an ROE & ROCE of 18.52% and 24.96%, respectively. Today, the scrip opened at Rs 3030 and has touched a high and low of Rs 3039.4 and Rs 2998.65, respectively. So far 4168 shares have been traded on the bourses. 

At 1.32 pm, the shares of Schaeffler India Ltd were trading at Rs 3001.05, an increase of 0.03% from the previous day’s closing price of Rs 3000.15 on BSE. The stock has a 52-week high & low of Rs 3,088.80 and Rs 1380 respectively on BSE.

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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