Check Before You Invest : SKF India Ltd

Q: Which industry/sub-sector does SKF India Ltd belong to?

SKF India Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.

Q: Is SKF India Ltd a good quality company?

SKF India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is SKF India Ltd undervalued or overvalued?

SKF India Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 71.6, Historic Median: 43.49. Price to Book, Current: 6.31, Historic Median: 9.41. Price to Sales, Current: 3.94, Historic Median: 5.02. EV to EBITDA, Current: 24.88, Historic Median: 28.12

Q: Is SKF India Ltd a good buy now?

SKF India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of SKF India Ltd?

SKF India Ltd revenue growth is 7.7% for FY-2025, which is below its 5-year CAGR of 11.6%, indicating slower growth.

Q: Gross Profit margin of SKF India Ltd?

SKF India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.2% for FY-2025, which is in line with its 5-year median of 17.2%, indicating stable margins.

Q: Operating Profit Margin of SKF India Ltd?

SKF India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.15% for FY-2025, which is in line with its 5-year median of 15.7% indicating stable margins.

Q: Net Profit Margin of SKF India Ltd?

SKF India Ltd Net Profit Margin is 11.5% for FY-2025, is in line with its 5-year median of 11.5%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.2, Historic Median: 17.2. Operating Profit Margin (%), Current: 15.15, Historic Median: 15.7. Net Profit Margin (%), Current: 11.5, Historic Median: 11.5

Q: Return on Asset of SKF India Ltd?

SKF India Ltd Return on Asset is 9.57%, which is in line with its 5-year historical median of 9.57%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of SKF India Ltd?

SKF India Ltd Return on capital employed is 28.93% for FY-2025, which is in line with its 5-year historical median of 29.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : SKF India Ltd

BSE: 500472 NSE: SKFINDIA ISIN: INE640A01023

| Sector: Automobiles | Industry: Bearings

Snapshot

Q.1 Which industry/sub-sector does SKF India Ltd belong to?

SKF India Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.

Q.2 Is SKF India Ltd a good quality company?

SKF India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is SKF India Ltd undervalued or overvalued?

SKF India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	71.6	43.49
Price to Book	6.31	9.41
Price to Sales	3.94	5.02
EV to EBITDA	24.88	28.12

Q.4 Is SKF India Ltd a good buy now?

SKF India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of SKF India Ltd?

SKF India Ltd revenue growth is 7.7% for FY-2025, which is below its 5-year CAGR of 11.6%, indicating slower growth.

Q.2 Gross Profit margin of SKF India Ltd?

SKF India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.2% for FY-2025, which is in line with its 5-year median of 17.2%, indicating stable margins.

Q.3 Operating Profit Margin of SKF India Ltd?

SKF India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.15% for FY-2025, which is in line with its 5-year median of 15.7% indicating stable margins.

Q.4 Net Profit Margin of SKF India Ltd?

SKF India Ltd Net Profit Margin is 11.5% for FY-2025, is in line with its 5-year median of 11.5%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.2	17.2
Operating Profit Margin (%)	15.15	15.7
Net Profit Margin (%)	11.5	11.5

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of SKF India Ltd?

SKF India Ltd Return on Asset is 9.57%, which is in line with its 5-year historical median of 9.57%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of SKF India Ltd?

SKF India Ltd Return on capital employed is 28.93% for FY-2025, which is in line with its 5-year historical median of 29.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of SKF India Ltd?

SKF India Ltd Return on equity is 21.43% for FY-2025, which is in line with its 5-year historical median of 21.96%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of SKF India Ltd?

SKF India Ltd Cash conversion cycle is 56 days, in line with its 5-year historical median of 56 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.83	0.83
ROE (%)	21.43	21.96
ROCE (%)	28.93	29.34
Cash Conversion Cycle	56 days	56 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of SKF India Ltd?

SKF India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of SKF India Ltd?

SKF India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of SKF India Ltd?

Q.1 Promoter shareholding and pledge status of SKF India Ltd?

Promoters hold 52.58% of the SKF India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SKF India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of SKF India Ltd vs industry peers?

SKF India Ltd revenue CAGR is 11.60%, compared to the industry median CAGR of 7.70%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	7.7	7.7
Gross Profit Growth (%)	4.4	18
Operating Profit Growth (%)	3.8	15.4
Net Profit Growth (%)	2.5	16.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.83	0.89
ROE (%)	21.43	14.63
ROCE (%)	28.93	13.99
Cash Conversion Cycle (days)	56.37	103

Valuation & price assessment

Q.1 Stock return of SKF India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	3.4%	-7%	-27.1%	-63%

Q.2 Valuation ratios of SKF India Ltd vs historical?

The current P/E ratio of 71.6 is higher than its historical median of 43.49, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	71.6	43.49	22.77
Price to Book	6.31	9.41	2.84
Price to Sales	3.94	5.02	2.46
EV to EBITDA	24.88	28.12	13.87

Check more companies

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7. Satani Bearings

8. SKP Bearing Indus.

9. Bimetal Bearings

10. Galaxy Bearings

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5. Motilal Oswal Financial Services Ltd.

Check Before You Invest : SKF India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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