New Delhi, March 3 -- Schaeffler India Ltd stock's muted reaction to its quarter and year-ending December results is understandable even though financials were decent.

The stock remains richly valued at close to 50 times the CY24 price-to-earnings (P/E) multiple despite a nearly 40% correction from the peak of Rs.4,951 on 18 June. At its peak, the stock's P/E was almost 80 times. However, even at such a high P/E, mutual fund managers, the supposedly more knowledgeable investors, did not think of exiting as their total shareholding was largely steady at about 14% between March 2024 and December 2024.

Notably, Schaeffler's sales and Ebitda have shown a linear rise over the past three years, with 13% and 14% CAGR in revenue and Ebitda, res...