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Schaeffler India Ltd. is not traded on NSE in the last 5 days
Change Change %
25.20 0.48%

Updated:19 Apr, 2018, 16:01 PM IST

Research Report Detail

Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
31-08-2017 Buy 4963.30 5102.00
Target Hit Long (1Y)

Edelweiss maintains buy on Schaeffler India

Schaeffler India, a leader in cylindrical and spherical roller bearings, has announced merger of its group companies INA Bearings (leader in needle roller bearings) and LuK India (a clutch and transmission component systems player for automotive systems) with itself. The merger will create a combined entity of INR35.7bn in revenue, having EBITDA of INR5.68bn and PAT of INR3.24bn. We believe the Schaeffler group, a leading Indian automotive and industrial bearings supplier, is well placed to gain from the structural and cyclical uptick expected in both segments and further gain from capex of around INR7.5-10bn planned over 5 years as a group. Structural benefits of localisation, innovative products, and capex incurred as one entity will help it outperform industry sales as well as earnings along with recording strong cost synergies. The merger paves the way for other MNCs to create a transparent, unified and simplified structure to outgrow market.

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