SKF India Limited (SKFINDIA) AI Stock Analysis

• Market Cap: ₹83.32B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.85K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.12
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹1,770.00 ▼(-2.48% Downside)

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

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial flexibility. With cash reserves exceeding debt, the company can fund working capital, capex or withstand cyclical downturns without relying on external borrowing, supporting long-term stability and investment capacity.

Profitability and ROE

Sustained double-digit net margins and a high ROE signal efficient use of capital and pricing power in core markets. These profitability metrics support reinvestment into products and services, underpinning long-term returns and competitive positioning across automotive and industrial segments.

Parent Group Support & Market Position

Affiliation with the global SKF Group delivers durable advantages: branded product credibility, access to advanced technology, broader product portfolio and potential supply-chain support. This strengthens OEM relationships and aftermarket reach, reinforcing competitive barriers over time.

Negative Factors

Cash Conversion Weakness

Below-par conversion of reported earnings into operating and free cash flow reduces internal funding for growth and maintenance. Persistently weaker cash conversion can force higher working capital needs or external financing, constraining sustainable capex, dividends, and strategic investments.

Earnings Trend Pressure

Negative EPS growth despite modest revenue gains indicates margin compression or rising non-operating costs. If persistent, deteriorating per-share earnings can undermine ability to fund returns to shareholders and limit reinvestment potential, necessitating operational improvement to restore earnings momentum.

Rising Depreciation Impact

Higher D&A relative to operating profit points to increasing capital intensity or aging assets. Elevated non-cash charges reduce EBITDA comparability and may signal ongoing maintenance or replacement capex needs, which can weigh on free cash flow and long-term return on invested capital if not matched by productivity gains.

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, 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	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	7.33B	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: 1815.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1815 is above the 20-day moving average (MA) of 1790.53, below the 50-day MA of 1827.97, and below the 200-day MA of 2099.21, indicating a bearish trend. The MACD of -44.68 indicates Positive momentum. The RSI at 30.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.25 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	₹183.38B	52.98	―	―	19.91%	22.13%
ZFCVINDIA	68 Neutral	₹284.12B	58.85	―	0.13%	4.02%	17.88%
ELGIEQUIP	66 Neutral	₹137.13B	35.11	―	0.47%	9.46%	18.97%
TIMKEN	66 Neutral	₹221.07B	48.61	―	1.18%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹201.70B	36.39	―	0.84%	3.59%	1.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹83.32B	15.53	―	0.39%	6.65%	-4.29%

SKF India Limited Corporate Events

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.

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.