Schaeffler India Limited

“Schaeffler India is a top-decile Indian industrial franchise — net cash, 26-31% ROCE, durable IP moat via parent Schaeffler AG, and a decade-long reinvestment runway in Indian industrial capex and EV transition — but the stock trades at 52x trailing earnings embedding ~21% EPS CAGR expectations that historical 13-15% revenue growth does not support, delivering a sub-7% base-case IRR with no margin of safety; the right action is to track for a 20-25% drawdown toward the 35-38x forward P/E range before initiating a position.”