Export, demand slowdown may hurt Schaeffler India's near-term prospects

March quarter earnings were below estimates due to weak show of industrial segment

Shares of Schaeffler India, the country’s largest listed ball bearings maker, were down about 9 per cent over the last three trading sessions on a weak March quarter performance, downward revision of earnings and lack of valuation comfort. While brokerages are positive on the company’s medium-term prospects, in the near term there could be pressure both on exports as well as domestic auto segments.

The company posted an 8 per cent growth over the year-ago quarter led by growth in the automotive businesses. While the automotive technologies segment was up 21 per cent, automotive aftermarket business gained 17.4 per cent.