Schneider Electric stock hits 5% lower circuit for 4th day in a row, down 22% from recent high – here's why

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Schneider Electric Infrastructure, a prominent player in the heavy electric equipment industry, has seen its shares hit the 5% lower circuit limit for the fourth consecutive day on Wednesday. During this period, the shares have fallen from ₹916 apiece to the current level of ₹746.30, marking an 18.52% decline.This recent drop has also led the stock to correct 22% from its recent all-time high of ₹954.35.

The downturn followed the company's Q4 earnings, which failed to meet market expectations.Despite the recent sell-off, the stock boasts a multibagger return of 215% in the past year and an impressive 611% over the last five years, showcasing its consistent performance.The company on May 23 released its March quarter numbers, reporting a 92.7% decline in the net profit to ₹3.28 crore, primarily due to a sharp increase in operating expenses, which rose to ₹398.54 crore from ₹349.55 crore in Q4 FY23. Also Read: Crude oil prices hit 4-week high on OPEC+ cut expectations, heightened Middle East tensionsAdditionally, finance costs jumped to ₹32.38 crore from ₹14.34 crore in Q4 FY23.

Revenue from operations for the quarter increased by 15% YoY, reaching ₹471.75 crore from ₹410.51 crore.Despite the quarterly setback, the company's net profit for the full fiscal year (FY24) improved to ₹172 crore from ₹124 crore in FY23, while revenue from operations rose to ₹2,207 crore from ₹1,777 crore, according to the company's Q4 investor presentation. Earlier, global brokerage firm Goldman Sachs maintained a cautious outlook on the stock, citing the sharp rise in share value in recent years.