SKF India Limited (SKFINDIA) AI Stock Analysis

• Market Cap: ₹76.25B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.85K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.11
• Revenue Growth: 6.65%
• EPS Growth: -4.29%
• Country: IN
• Employees: 1,701
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 14.60
• Shares Outstanding: 49,437,965
• 10 Day Avg. Volume: 2,027
• 30 Day Avg. Volume: 1,850
• PEG Ratio: 6.19
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 125.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 48.17
• Revenue Forecast (FY): ₹23.24B

• Rating: 60 Neutral
• Price Target: ₹1,619.00 ▼(-10.80% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

SKF India's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators suggesting potential downside. The valuation is moderate, with a reasonable P/E ratio but a low dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Very low leverage and strong equity base

Extremely low debt and a high equity ratio provide long-term financial resilience, lowering default risk and interest burden. This capital structure supports steady investment, withstands cyclical downturns in automotive/industrial demand, and preserves strategic optionality.

Healthy margins and operating efficiency

Sustained strong EBIT/EBITDA and a rising net margin indicate durable cost control and pricing power across automotive and industrial end-markets. Persistent margin strength supports reinvestment in service offerings and buffers profitability through cycles.

Strategic advantage from SKF Group affiliation

Being part of the SKF Group confers structural advantages: brand credibility, shared technology, broader product access and supply-chain backing. These reduce go-to-market friction, strengthen OEM/aftermarket ties, and sustain competitive positioning over time.

Negative Factors

Recent negative reported revenue growth

A notable decline in reported revenue signals exposure to cyclicality or volume loss in key end-markets. If sustained, shrinking top-line reduces operating leverage, constrains reinvestment capacity, and can pressure long-term margin expansion and scale benefits.

Suboptimal cash conversion from profits

Below-par conversion of accounting profits into cash limits flexibility for capex, dividends, and working-capital shocks. Over months, weak cash conversion increases reliance on reserves, reduces margin of safety and constrains tactical investments to support growth or aftermarket services.

Rising non-cash charges reducing EBITDA trend

Higher depreciation/amortization compresses EBITDA and may reflect recent capex or an aging asset base requiring reinvestment. Persistently elevated non-cash charges can signal capital intensity and weigh on cash flow after maintenance capex needs are met.

SKF India Limited Business Overview & Revenue Model

Company Description

SKF India Limited supplies rotating equipment in automotive and industrial segment in India. It offers rolling bearings, bearings accessories, engineered products, and track rollers; and mounted bearings and housings, super-precision bearings, slewing bearings, plain bearings, and magnetic bearings and systems. The company also provides industrial seals, such as power transmission, hydraulic, fluid handling, and machined seals, as well as engineering services; automotive seals; and lubrication management products, such as automatic lubrication systems, lubrication system components, lubricants, lubricators, and manual lubrication tools. In addition, it offers maintenance products comprises hydraulic, mechanical, and alignment tools, as well as heaters; condition monitoring systems, such as basic and portable monitoring products, surveillance systems, and machine protection products; and power transmission solutions, including belts, pulleys, chains, sprockets, bushings and hubs, couplings, and bolts and tightening systems. Further, the company provides test and measuring equipment consisting of noise and vibration testers, grease test rigs, and waviness, roundness, as well as services for test and measuring equipment; and supplies replacement parts. Additionally, it offers technical consultancy, numerical simulation and design, and root cause analysis services; asset management; mechanical and condition based maintenance; remanufacturing; and training services in various fields. It serves aerospace, agriculture, cars and light trucks, construction, food and beverage, machine tools, marine, material handling, metals, mining, mineral processing and cement, ocean energy, and other industries. SKF India Limited was founded in 1923 and is based in Pune, India.

How the Company Makes Money

SKF India makes money primarily by selling bearings and related rotating-equipment products to customers in two broad end-markets: (1) automotive (original equipment manufacturers and aftermarket replacement) and (2) industrial customers (such as general manufacturing and other industries that use rotating machinery). Revenue is generated from product sales (e.g., bearings and allied components) and, where applicable, from services and solutions tied to those products (such as application engineering, reliability/condition-related support, and other customer support services). Earnings are influenced by demand from automotive production and the replacement/aftermarket cycle, industrial capital and maintenance spending, pricing and input-cost dynamics, and the company’s ability to leverage the SKF brand, distribution channels, and its relationship with the broader SKF Group for technology, product portfolio access, and potential supply-chain support.

SKF India Limited Financial Statement Overview

Summary

SKF India Limited demonstrates strong financial performance with solid revenue growth, healthy profit margins, and a robust balance sheet characterized by minimal debt and high equity. However, there is room for improvement in cash flow conversion efficiency.

Income Statement

SKF India Limited has demonstrated solid revenue growth with a consistent increase over the years, culminating in a 7.67% growth from 2024 to 2025. The company maintains healthy gross and net profit margins, with the net margin improving slightly to 11.50% in 2025. EBIT and EBITDA margins are strong, indicating efficient operations and cost management. However, the decreasing EBITDA compared to EBIT suggests higher depreciation or amortization expenses, which could be a point of concern.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.003, showcasing minimal leverage and financial risk. Return on equity is strong at 21.78%, indicating effective use of equity capital. Additionally, the equity ratio is high at 72.90%, reflecting a strong reliance on equity financing, which provides stability. The company is liquid, with substantial cash reserves exceeding its total debt.

Cash Flow

SKF India’s cash flow position is stable, reflected by positive free cash flow, albeit with a decline from the previous year. The operating cash flow to net income ratio is below 1, suggesting room for improvement in converting income into cash. The free cash flow to net income ratio is also lower, indicating the need for optimized capital expenditures to enhance cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.62B	49.20B	45.70B	43.05B	36.66B	26.71B
Gross Profit	19.32B	18.42B	17.33B	16.81B	13.69B	10.64B
EBITDA	7.73B	7.45B	7.15B	7.92B	5.73B	4.25B
Net Income	5.36B	5.66B	5.52B	5.25B	3.95B	2.98B
Balance Sheet
Total Assets	38.73B	35.64B	36.51B	31.78B	26.28B	23.03B
Cash, Cash Equivalents and Short-Term Investments	8.11B	7.19B	12.18B	9.55B	3.99B	4.98B
Total Debt	33.50M	69.20M	117.60M	144.40M	161.00M	175.80M
Total Liabilities	11.19B	9.66B	9.69B	8.37B	7.43B	7.39B
Stockholders Equity	27.54B	25.98B	26.83B	23.41B	18.86B	15.64B
Cash Flow
Free Cash Flow	1.26B	717.30M	4.94B	5.84B	-345.40M	2.50B
Operating Cash Flow	3.20B	2.03B	6.24B	6.90B	570.90M	3.24B
Investing Cash Flow	-1.60B	-598.30M	-1.58B	-449.20M	-325.90M	6.54B
Financing Cash Flow	-755.20M	-6.50B	-2.04B	-785.50M	-779.90M	-6.52B

SKF India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1815.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SKFINDIA, the sentiment is Negative. The current price of 1815 is above the 20-day moving average (MA) of 1672.87, above the 50-day MA of 1726.05, and below the 200-day MA of 2050.80, indicating a bearish trend. The MACD of -48.21 indicates Positive momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SKFINDIA.

SKF India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZFCVINDIA	68 Neutral	₹260.01B	50.33	―	0.13%	4.02%	17.88%
ELGIEQUIP	66 Neutral	₹151.96B	39.31	―	0.47%	9.46%	18.97%
TIMKEN	66 Neutral	₹237.94B	103.51	―	1.18%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹170.52B	37.63	―	0.84%	3.59%	1.37%
JYOTICNC	64 Neutral	₹168.29B	63.58	―	―	19.91%	22.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹76.25B	36.90	―	0.39%	6.65%	-4.29%

SKF India Limited Corporate Events

SKF India shareholders ratify appointment of three non-executive directors

SKF India Limited has informed the stock exchanges that its shareholders, through a postal ballot process concluded on 17 March 2026, have approved the appointment of three Non-Executive, Non-Independent Directors to its board, effective 13 January 2026. The appointments of Antonio Molle, Bastian Thomas and Magnus Lennart Prick, earlier inducted as Additional Directors, formalise their positions and reflect the company’s ongoing alignment with SEBI’s corporate governance norms and its internal policy on material event disclosures.

Based on recommendations from the Nomination and Remuneration Committee and prior board approval on 10 January 2026, the shareholder vote regularises these board changes under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements. The expanded non-executive representation is expected to strengthen board oversight and strategic guidance for SKF India’s operations, with implications for governance standards that are closely watched by investors and regulators in the listed manufacturing space.

SKF India Reports Insider Trading Code Violation by Designated Person

SKF India Limited has reported a violation of its Code of Conduct for Prevention of Insider Trading by a designated person, Ms. Prajakta Kad, who traded in the company’s equity shares in December and executed a contra-trade within six months of the initial transaction, breaching internal trading rules aligned with SEBI’s insider trading regulations. The incident was reviewed by the company’s Audit Committee on 5 February 2026, following which the company took action in line with regulatory requirements, including issuing a warning letter on 6 February 2026 and filing a formal report of the violation and the action taken with the stock exchanges under the SEBI (Prohibition of Insider Trading) Regulations, 2015, underscoring its commitment to regulatory compliance and internal governance despite the relatively small size of the trades involved.

SKF Interim AB Acquires 52.58% Stake in SKF India from Promoter AB SKF via Off‑Market Deal

SKF India Limited has disclosed that SKF Interim AB, a member of its promoter group, has acquired 25,992,059 equity shares, representing 52.58% of the company’s share capital, from the existing promoter Aktiebolaget SKF through an off‑market transaction executed under the SEBI (Prohibition of Insider Trading) Regulations, 2015. The transaction effectively reorganises the shareholding structure within the promoter group without altering overall promoter control, and the company has filed the requisite disclosures with the stock exchanges in compliance with insider trading and disclosure norms.

SKF India’s Promoter Transfers 52.58% Stake to AB SKF Subsidiary in Intra-Group Deal

SKF India Limited has disclosed that its promoter, Aktiebolaget SKF (AB SKF), has transferred 25,992,059 equity shares, representing 52.58% of the company’s share capital, to SKF Interim AB, a wholly owned subsidiary of AB SKF, through an off-market transaction. The company states that the intra-group transfer, made in compliance with India’s insider trading regulations and the company’s own code of conduct, effectively shifts the majority shareholding within the SKF group without altering ultimate control, signalling an internal restructuring of the promoter’s holding rather than a change in ownership for external stakeholders.

SKF Interim AB Acquires 52.58% Stake in SKF India from Promoter AB SKF via Off-Market Deal

SKF India Limited has disclosed that SKF Interim AB, a member of its promoter group, has acquired 25,992,059 equity shares, representing 52.58% of the company’s share capital, from existing promoter Aktiebolaget SKF through an off-market transaction. The intra-group transfer, carried out under provisions of India’s insider trading regulations, effectively consolidates the promoter holding under SKF Interim AB without changing the overall promoter stake in the company, signalling an internal reorganisation of shareholding rather than a shift in control, with limited immediate impact expected for public shareholders.