(Reuters) -Automotive and industrial parts maker Schaeffler India reported a 24.1% rise in third-quarter profit on Friday, driven by demand for ancillary auto products like transmission, braking systems and industrial bearings products
The company, a unit of Germany’s Schaeffler AG, reported profit of 3.07 billion rupees ($34.9 million) for the quarter ended September 30 from 2.47 billion rupees a year earlier.
Revenue from operations rose 13.9% to 23.6 billion rupees.
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KEY CONTEXT
Production of passenger vehicles grew 4.2% year-on-year in the third quarter in India according to industry data, while that of commercial vehicles grew 10.9%, favouring growth for auto ancillaries like Schaeffler India, analysts noted.
The company’s largest division, the automotive technologies segment, contributed nearly 44% to quarterly revenue, and has customers across passenger vehicle, commercial vehicle, and tractor markets such as Toyota Kirloskar and Honda.
Smaller peers SKF India and NRB Bearings Ltd are yet to report quarterly results.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBI Revenue profit Mean # of Stock to Div
TDA growth (%) growth (%) rating analysts price target yield
* ** (%)
Schaeffler India Ltd SCHE.NS 46.71 30.38 13.22 29.51 BUY 8 0.91 0.72
SKF India Ltd SKFB.NS 16.31 11.38 10.02 12.74 BUY 9 0.43 0.66
NRB Bearings Ltd NBEA.NS 19.48 14.84 NULL NULL STRONG 1 0.77 2.55
BUY
Timken India Ltd TIMK.NS 45.82 28.67 14.95 15.90 BUY 5 0.83 1.20
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.8950 Indian rupees
(Reporting by Meenakshi Maidas in Bengaluru and Yagnoseni Das; Editing by Harikrishnan Nair and Ronojoy Mazumdar)
