Is Schaeffler India Overvalued or Undervalued Right Now?

Is Schaeffler India overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 3,986.70, the stock trades roughly 10.8% below its 52 week high of Rs 4,467.70 and about 13.3% above its 52 week low of Rs 3,518.40.

Schaeffler India's share price moved down 0.34% in the latest session to Rs 3,986.70, against a market capitalisation of Rs 62,521 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple, and works through the full Schaeffler India overvalued or undervalued picture step by step.

Click Here – Get Free Investment Predictions

Schaeffler India Overvalued or Undervalued: Valuation Metrics

Valuation Metric	Schaeffler India
CMP (2 Sep 2026)	Rs 3,986.70
Market Cap	Rs 62,521 Cr
P/E Ratio	49.88
Industry P/E	47.71
P/B Ratio	10.17
Sector Average P/B (industrial machinery and pumps)	7.63
Return on Equity (ROE)	20.39%
Sector Average ROE (industrial machinery and pumps)	11.79%
EPS (TTM)	Rs 80.19
Book Value per Share	Rs 393.29
Debt to Equity	0.01
Dividend Yield	0.87%
Sector Average Dividend Yield (industrial machinery and pumps)	0.58%
52 Week High / Low	Rs 4,467.70 / Rs 3,518.40

The headline number here is the price to earnings ratio. At 49.88, the Schaeffler India PE ratio is 1.05 times the industry average of 47.71. Measured against its industrial machinery and pumps sector peers, the gap widens further on other measures too: a P/B of 10.17 against a sector average of 7.63, and an ROE of 20.39% against a sector average of 11.79%. This table alone is not enough to settle whether Schaeffler India overvalued or undervalued is the fair read, but it is the starting point for the rest of this analysis.

Is Schaeffler India Overvalued or Undervalued Based on Its P/E Ratio?

Based on the P/E ratio alone, Schaeffler India looks fairly valued. The stock's PE of 49.88 sits close to the industry average of 47.71, which suggests the market is pricing the business roughly in line with its sector rather than at a premium or a discount. That leaves the question of Schaeffler India overvalued or undervalued more dependent on its growth trajectory than on the PE ratio itself.

Check Schaeffler India's Live Fundamentals on the Univest Screener

Schaeffler India's Financial Growth and Profitability

Schaeffler India's revenue moved from Rs 8,350.68 crore in FY2024 to Rs 9,834.13 crore in FY2025, a change of 17.8%. Net profit grew from Rs 938.86 crore to Rs 1,150.35 crore over the same period, a swing of roughly 22.5%.

The Schaeffler India share price has moved alongside this earnings trend, which is part of why the stock now trades at 1.05 times the industry PE of 47.71 rather than a flat multiple.

These growth numbers feed directly into the Schaeffler India overvalued or undervalued question, since a rich multiple is easier to justify when profit growth is accelerating than when it is flat or falling.

Download the Univest iOS App or Univest Android App to track Schaeffler India's live share price and valuation ratios.

Schaeffler India Overvalued or Undervalued: The Case for Overvalued

Before getting to the bullet points, it helps to frame the Schaeffler India overvalued or undervalued question in terms of what would make the bear case right.

• Rich price to book: A P/B of 10.17 is well above the sector average of 7.63.
• Limited margin of safety: At Rs 3,986.70, the stock is only 10.8% below its 52 week high of Rs 4,467.70, leaving less room for error if earnings disappoint.

Schaeffler India Overvalued or Undervalued: The Case Against It

The other side of the Schaeffler India overvalued or undervalued debate rests on the quality metrics below.

• High return on equity: ROE of 20.39% against a sector average of 11.79% reflects efficient use of shareholder capital.
• Low leverage: A debt to equity ratio of 0.01 gives Schaeffler India a comparatively strong balance sheet.
• 52 week range context: At Rs 3,986.70, the stock is 13.3% above its 52 week low of Rs 3,518.40, showing it has already found some support at lower levels.

Verdict: Is Schaeffler India Overvalued or Undervalued Right Now?

On balance, Schaeffler India looks fairly valued rather than clearly overvalued or undervalued. Its PE of 49.88 sits close to the industry average of 47.71, and its 20.39% ROE and other ratios do not point to a significant mispricing either way. The more useful question for investors from here is less about the current multiple and more about whether earnings growth accelerates or slows. On the specific question of Schaeffler India overvalued or undervalued, the current evidence does not lean strongly either way.

What Could Change Whether Schaeffler India Is Overvalued or Undervalued?

Two broad scenarios could shift this valuation call on Schaeffler India in either direction. On the upside, an improvement in return ratios or growth that pushes the stock's PE of 49.88 toward a premium over the industry average of 47.71. On the downside, a deterioration in the numbers that pulls the PE below the industry average of 47.71 instead. Investors watching the Schaeffler India share price over the next few quarters should track whether reported ROE holds near 20.39% and whether the PE gap versus the industry average of 47.71 widens or narrows, since both will matter more to the eventual answer on Schaeffler India overvalued or undervalued than the current price point on its own.

Conclusion

Schaeffler India's numbers point to a stock that is fairly valued on headline multiples. Investors tracking the Schaeffler India share price should watch whether earnings growth can keep pace with the current PE of 49.88, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. For anyone still weighing Schaeffler India overvalued or undervalued as a one-line takeaway, the multiples say fairly valued while the return ratios offer partial support for the current price. This article is for informational purposes only and is not investment advice.

Schaeffler India Overvalued or Undervalued: FAQs

Is Schaeffler India overvalued or undervalued right now?

Ans. Based on a PE ratio of 49.88 against an industry average of 47.71, Schaeffler India currently looks fairly valued on relative valuation. Its 20.39% ROE is an important part of the Schaeffler India overvalued or undervalued picture alongside the PE ratio.

What is Schaeffler India's current PE ratio?

Ans. Schaeffler India's price to earnings ratio stands at 49.88, compared with an industry average PE of 47.71. This PE gap is the main input into the Schaeffler India overvalued or undervalued call made in this article.

What is Schaeffler India's return on equity?

Ans. Schaeffler India generates a return on equity of 20.39%, against a sector average of 11.79% among industrial machinery and pumps peers.

What is Schaeffler India's 52 week high and low?

Ans. Schaeffler India's 52 week high is Rs 4,467.70 and its 52 week low is Rs 3,518.40. The stock currently trades around Rs 3,986.70, roughly 10.8% below its high.

Does Schaeffler India have high debt?

Ans. Schaeffler India carries a debt to equity ratio of 0.01, which is low for its sector.

What is Schaeffler India's dividend yield?

Ans. Schaeffler India offers a dividend yield of 0.87% at the current share price.

Is Schaeffler India a good stock to buy at current levels?

Ans. Schaeffler India's current valuation suits investors who agree with the fairly valued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.

What is Schaeffler India's price to book ratio?

Ans. Schaeffler India trades at a price to book ratio of 10.17, compared with a sector average of 7.63 among industrial machinery and pumps peers.

What is the simplest way to summarise Schaeffler India overvalued or undervalued?

Ans. On PE alone, Schaeffler India is fairly valued against its industry average of 47.71. Layer in the 20.39% ROE and the answer to Schaeffler India overvalued or undervalued becomes more nuanced than the headline multiple suggests on its own.