Schaeffler India's growth needs to justify rich valuation

Precision in performance

- Manish Joshi

Schaeffler India Ltd stock's muted reaction to its results for the quarter and year ended December is understandable despite its decent financials.

The stock remains richly valued at close to 50 times the CY24 price-to-earnings (P/E) multiple despite a nearly 40% correction from the peak of ₹4,951 on 18 June. At its peak, the stock's P/E was almost 80 times. However, even at such a high P/E, mutual fund managers, the supposedly more knowledgeable investors, did not think of exiting as their total holding was largely steady at about 14% between March and December 2024.