SKF India Limited (SKFINDIA) AI Stock Analysis

• Market Cap: ₹104.75B
• Dividend Yield: 0.36%
• Average Volume (3M): 1.85K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.98
• Revenue Growth: 6.65%
• EPS Growth: -4.29%
• Country: IN
• Employees: 1,701
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 7.80
• Shares Outstanding: 49,437,965
• 10 Day Avg. Volume: 2,027
• 30 Day Avg. Volume: 1,850
• PEG Ratio: 12.94
• Price to Book (P/B): 7.23
• Price to Sales (P/S): 3.82
• P/FCF Ratio: 261.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹2,076.00 ▲(8.39% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with minimal debt enhances financial stability, providing flexibility for strategic investments and resilience against economic downturns.

Profitability

Sustained profitability with improving margins reflects efficient operations and cost management, supporting long-term financial health and shareholder value.

Negative Factors

Cash Flow Conversion

Suboptimal cash flow conversion can limit liquidity and investment capacity, potentially impacting the company's ability to fund growth initiatives and manage financial obligations.

Earnings Growth

Declining EPS growth suggests challenges in profitability or increased costs, which could hinder investor confidence and affect future capital raising or expansion efforts.

EBITDA Concerns

Higher depreciation or amortization expenses can erode operating profitability, affecting cash flow and potentially limiting reinvestment in business operations.

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 generates revenue primarily through the sale of its core products, including bearings and seals, which are critical components in machinery and vehicles. The company has established key revenue streams from both OEM (Original Equipment Manufacturer) and aftermarket sales. Additionally, SKF India offers maintenance services and solutions that aid in reducing downtime and improving operational efficiency for its customers. Strategic partnerships with various industries, including automotive and manufacturing sectors, further bolster its earnings. The company also benefits from its global presence, leveraging the SKF Group's extensive supply chain and technological expertise to enhance its market position and profitability.

SKF India Limited Financial Statement Overview

Summary

SKF India Limited demonstrates strong financial performance with solid revenue growth, profitability, 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.97B	49.20B	45.70B	43.05B	36.66B	26.71B
Gross Profit	18.62B	18.42B	17.33B	16.81B	13.69B	10.64B
EBITDA	7.14B	7.45B	7.15B	7.92B	5.73B	4.25B
Net Income	5.25B	5.66B	5.52B	5.25B	3.95B	2.98B
Balance Sheet
Total Assets	0.00	35.64B	36.51B	31.78B	26.28B	23.03B
Cash, Cash Equivalents and Short-Term Investments	7.11B	7.19B	12.18B	9.55B	3.99B	4.98B
Total Debt	0.00	69.20M	117.60M	144.40M	161.00M	175.80M
Total Liabilities	-25.98B	9.66B	9.69B	8.37B	7.43B	7.39B
Stockholders Equity	25.98B	25.98B	26.83B	23.41B	18.86B	15.64B
Cash Flow
Free Cash Flow	0.00	717.30M	4.94B	5.84B	-345.40M	2.50B
Operating Cash Flow	0.00	2.03B	6.24B	6.90B	570.90M	3.24B
Investing Cash Flow	0.00	-598.30M	-1.58B	-449.20M	-325.90M	6.54B
Financing Cash Flow	0.00	-6.50B	-2.04B	-785.50M	-779.90M	-6.52B

SKF India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1915.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1915.35 is below the 20-day moving average (MA) of 2038.25, below the 50-day MA of 2176.03, and below the 200-day MA of 2097.64, indicating a bearish trend. The MACD of -67.70 indicates Positive momentum. The RSI at 20.25 is Positive, neither overbought nor oversold. The STOCH value of 7.17 is Positive, 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
JYOTICNC	71 Outperform	₹213.75B	63.52	―	―	19.91%	22.13%
ELGIEQUIP	66 Neutral	₹152.72B	41.99	―	0.44%	9.46%	18.97%
TIMKEN	66 Neutral	₹229.57B	50.47	―	1.14%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹202.35B	36.53	―	0.85%	3.59%	1.37%
ZFCVINDIA	65 Neutral	₹243.28B	50.30	―	0.14%	4.02%	17.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹104.75B	19.95	―	0.36%	6.65%	-4.29%

SKF India Limited Corporate Events

SKF India Reports Q2 FY2025-26 Results and Strategic Demerger

SKF India Limited announced its financial results for the second quarter of FY2025-26, reporting a consolidated revenue of Rs. 13,090.6 million and a Profit Before Tax of Rs. 1,406.2 million, reflecting a 5.2% growth year-over-year. The company has undergone a strategic demerger, creating two focused entities: SKF Industrial and SKF Automotive. This restructuring aims to enhance operational efficiency and growth, with SKF Industrial targeting sectors like manufacturing and renewables, and SKF Automotive focusing on India’s mobility transformation. The demerger is expected to unlock greater value for stakeholders and align with India’s industrial growth ambitions.

SKF India Limited Announces Q2 and Half-Year Financial Results

SKF India Limited’s Board of Directors has approved the unaudited financial results for the second quarter and half-year ending September 30, 2025. The results, which include standalone and consolidated statements of assets, liabilities, and cash flow, were reviewed by the statutory auditors who issued an unmodified opinion. This announcement reflects SKF India’s commitment to transparency and adherence to regulatory requirements, potentially impacting its operational efficiency and stakeholder confidence.

SKF India Initiates Postal Ballot for Key Resolutions

SKF India Limited has announced the dispatch of a Postal Ballot Notice to seek shareholder approval for key resolutions, including material related party transactions, the appointment of a new Managing Director, and the appointment of a Non-Executive Director. This move is part of the company’s governance process, ensuring compliance with regulatory requirements and facilitating shareholder engagement through remote e-voting, which could impact its strategic leadership and operational decisions.

SKF India Limited’s Promoter Acquires Significant Shareholding

SKF India Limited announced that its promoter, Aktiebolaget SKF, acquired 3,326,004 equity shares, representing 6.73% of the company’s shareholding, through an off-market transaction from SKF (U.K.) Limited and SKF Förvaltning AB. This acquisition, conducted under insider trading regulations, signifies a consolidation of shares within the promoter group, potentially impacting the company’s market positioning and shareholder dynamics.

SKF India Limited Announces Strategic Share Disposal

SKF India Limited announced the disposal of 3,129,581 equity shares, representing 6.33% of its shareholding, by SKF (U.K.) Limited to Aktiebolaget SKF (AB SKF) through an off-market transaction. This move, conducted under the Insider Trading Regulations, indicates a strategic realignment within the promoter group, potentially impacting the company’s market dynamics and stakeholder interests.

SKF India Limited Announces Share Disposal by Promoter Group Member

SKF India Limited announced that SKF Förvaltning AB, a member of its Promoter Group, has disposed of 196,423 equity shares, representing 0.40% of the company’s shareholding, through an off-market transaction with Aktiebolaget SKF, the company’s Promoter. This transaction, conducted under the Insider Trading Regulations, reflects internal shareholding adjustments within the Promoter Group, potentially impacting the company’s market perception and stakeholder interests.

SKF India Announces Scheme of Arrangement with SKF Industrial

SKF India Limited has announced the effective date for its Scheme of Arrangement with SKF India (Industrial) Limited, sanctioned by the National Company Law Tribunal. Under this scheme, SKF Industrial will issue equity shares to SKF India shareholders on a 1:1 basis, with 15th October 2025 set as the record date. This move aims to streamline operations and potentially enhance market positioning, with the new equity shares proposed for listing on major Indian stock exchanges, subject to regulatory approvals.

SKF India Announces Trading Window Closure in Compliance with SEBI Regulations

SKF India Limited has announced the closure of its trading window in compliance with SEBI regulations, effective from October 1, 2025, until 48 hours after the release of its financial results for the second quarter and half-year ending September 30, 2025. This measure, which includes freezing the PAN of designated persons to prevent trading during this period, aims to ensure adherence to insider trading regulations and maintain market integrity.