.png){kind=logo}
Schneider Electric Infrastructure stock is seeing good market traction, with its share price up by almost 5.18% to ₹698.10 as of 11:23 AM IST on February 12, 2025. The stock opened at ₹666.60, higher than its last close of ₹662.55.
Schneider Infra's share price hit an intraday high of ₹698.95 and a low of ₹653.00 during the day. The increasing trading volume of 1,491,714 shares and total traded value of ₹10,418.13 lakhs show growing investor interest.
Schneider Infra's market cap is ₹16,699 crore, and it is a mid-cap firm. The stock is trading low by 28.77% from its 52-week high of ₹980.00. Its 52-week low is ₹525.10. Other key figures are:
The above figures show that even though the stock is expensive in terms of its book value, sentiment is good due to its earnings growth and market positioning.
Schneider Infra has been a consistent outperformer in February, having gained in 7 of the last 13 years. It showcased an average monthly return of 3.80%. In February 2024, the stock gained a stupendous 35%. There is a weekly stochastic crossover on February 7, 2025, showing a bullish technical signal. It indicates the possibility of further upward momentum.
MACD Crossover (Feb 7, 2025): This bullish technical signal indicates a continuation of the uptrend, historically leading to average gains within 10 days.
Stochastic Crossover (Feb 7, 2025): Historical data indicates that this signal has led to an average 12.25% price appreciation in 7 weeks.
Price Momentum: The stock is trading at its daily high, indicating high buying interest.
Financial Health and Valuation
Return on Equity (ROE): 144.31%
Return on Capital Employed (ROCE): 66.92%
Debt-to-Equity Ratio: 1.55
Market Cap Rank in Sector: 44
Though the high P/B ratio of 41.80 indicates overvaluation, healthy ROE and earnings growth suggest that investors are discounting future profitability. Analysts have expressed their opinion on the stock being an underperformer for now, making it a good bet for long-term investors.
Schneider Infra shares are poised to gain from India's increasing focus on smart infrastructure and renewable energy solutions. The key drivers of its growth outlook are:
Expansion Plans and Financial Metrics
Revenue Growth: Estimated at 23.5% per annum.
Net Profit: Rose 26.62% YoY to ₹54.27 crore Q2 FY25.
Order Inflow: Recorded 19% YoY growth in Q1 FY25.
Earnings Growth Forecast: 29.6% annual growth.
Smart City Solutions: Schneider Infra is expanding its presence in urban efficiency and energy management schemes.
Manufacturing Optimization: The company is converting from an Engineering-to-Order (ETO) to a Configuration-to-Order (CTO) model. Thus, shortening production time from 3 months to 3 weeks.
Renewable Energy Expansion: The trend toward solar power adoption in India offers a massive opportunity for Schneider Infra's electrical infrastructure business.
Product Standardization: The company is rationalizing its product portfolio, concentrating on standardized relay, RMU, and SCADA models to ensure cost efficiency and scalability.
Mid-cap Growth Potential: Mid-cap companies have higher growth potential than large-caps and, therefore, are a favorite among investors seeking high returns.
Sector Demand: Increasing urbanization and demand for energy-efficient solutions are offering a healthy business environment.
Institutional Interest: Increasing the market cap could draw in institutional investors, boosting liquidity.
High Valuation: The stock is quoting at 39.6 times its book value, which is a concern when it comes to overvaluation.
Volatility: Being highly volatile with a beta of 1.53, the stock is riskier than the market.
No Dividend Payments: Though the company is reporting profits, it does not offer dividend payouts, which may deter income-driven investors.
Schneider Electric Infrastructure stock today has demonstrated strong price momentum, with a 5.18% jump. It is supported by favorable technicals and strong finances. Though the share price is quoting below its 52-week high, its valuation is at the higher end. Investors must consider growth prospects, industry trends, and technicals before making a bet.
Despite volatility and valuation concerns, Schneider Infra's strategic growth, rising order book, and strengthening bottom line make it a good bet. It provides a great opportunity for long-term investors seeking exposure to India's infrastructure and energy sectors.
