Market Cap of Schaeffler India - 48000cr
Value of Schaeffler’s AG’s Stake - 35500cr
Market Cap of Schaeffler AG - 31200cr (€3.47B)
P/S - 6.7 vs 0.21
P/E - 52 vs 6.15
As seen in the Structure of the company - both the company and holding company of the schaeffler family are debt ridden and there’s serious refinancing coming up as early as March 2024 and cost of debt has clearly shot up in Europe.
Schaeffler Is currently taking MORE Debt to buyout (complicated cash + stock merger) Vitesco & it seems to be for bailing out their holding company.
Schaeffler India has been actively doing other Roadshows too.
They did a factory visit on 7th DEC for Indian investors/ mutual funds/ analysts / brokerages.
This Really SHOCKED ME (I believe there’s a lot of secrecy around manufacturing processes in this industry)
Are Indian Investors so scatterbrained that they’re paying such crazy valuations to the Indian listed subsidiary? or am I really missing something special?
Whirlpool has announced they will trim their stake from 75% to 51% in Whirlpool India
Timken sold off 10% stake in Timken India.
I think a LOT of MNCs will follow this trend.
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