Schneider Electric share price jumps about 200% in a year

Schneider Electric Infrastructure share price surged by 200% in a year. The company’s core competencies include production of electrical distribution products. Equity analyst predicts positive momentum with a target of ₹900.

Multibagger stock: Schneider Electric Infrastructure share pricehas shot up by around 200% in just one year, providing investors attractive multibagger profits. Production, design, construction, and maintenance of cutting edge technological products and systems for the distribution of electricity are the core competencies of Schneider Electric Infrastructure. Products include distribution transformers, medium voltage switchgears, medium and low voltage protection relays, and automation and distribution equipment. Schneider Electric share price today opened at ₹815.30 apiece on BSE, the stock touched an intraday high of ₹832.75, and an intraday low of ₹798.75.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, highlighted that Schneider Electric share price has been trading within a range for the past few weeks, but today they are witnessing a breakout. This breakout suggests potential positive momentum in the near term, possibly targeting ₹900 as resistance. Immediate support is around ₹780.

Schneider Electric Infrastructure reported an about 39% increase in net profit to ₹48.48 crore for the June 2024 quarter on Monday, August 5, mostly due to higher revenue. According to a BSE filing, its net profit for the quarter ended June 30, 2023, was ₹34.92 crore. The overall revenue for the quarter increased from ₹497.57 crore to ₹595.51 crore from the previous year.

Margin surges on better orders & Execution

Brokerage houseElara Capital said that better-priced orders, a robust order backlog, and effective execution drove a 20% YoY increase in standalone revenue to ₹595.51 crore in Q1FY25. Data centers, transmission, mining, minerals, mobility, and other electro-sensitive businesses provided the growth impetus. Equipment made for 39% of the entire income by segment, followed by transactions (19%), services (13%), projects 8%, and intergroup transactions (22%).

The report stated thatthe management saidthe growth momentum will continue for the next three to five years, driven by the Made in India initiative, the goal of 500GW of renewable energy generation capacity by CY30, plans for expansion in the steel and cement industries, the growth of electric mobility, the rising capacity of data centres due to data localisation, the transition to the 5G network and generative artificial intelligence, and strong growth momentum in pump storage projects.

Order inflows for Schneider Electric Infrastructure climbed 19% YoY to ₹530 crorein Q1FY25. Power and gas, industrial, data centres, mobility, and metals were the top order winners, highlighted the brokerage.

Due to improved product mix and price orders, operational efficiency, and cost optimisation activities, the gross margin increased 360bp YoY to 39.9% in the first quarter. With a margin growth of 380bp YoY to 13.8%, led by gross margin improvement and operating leverage, EBITDA stood at ₹81.7 crore, up 65% YoY.

Elara Capital thinks that the focal sector will continue to be data centers. The data centers’ annual contribution to the company’s overall revenue is still 15% +/- 5%. For the next two to three years, the industry is expected to grow at a rate that will be driven mostly by hyperscale, co-location, and enterprise DC, according to management.

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