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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

SKF India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:32 pm

Market Cap 23,122 Cr.
Current Price 4,675
High / Low7,350/4,024
Stock P/E41.3
Book Value 464
Dividend Yield2.78 %
ROCE29.2 %
ROE21.9 %
Face Value 10.0
PEG Ratio2.99

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for SKF India Ltd

Competitors of SKF India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Galaxy Bearings Ltd 349 Cr. 1,0991,800/1,07618.2 3180.00 %27.7 %22.3 % 10.0
Deccan Bearings Ltd 19.2 Cr. 87.887.8/35.9 0.780.00 %68.8 %68.8 % 10.0
Benara Bearings & Pistons Ltd 25.2 Cr. 14.226.8/13.3 10.80.00 %2.39 %14.1 % 10.0
Austin Engineering Company Ltd 71.0 Cr. 204268/16716.7 1820.00 %8.91 %6.17 % 10.0
Timken India Ltd 24,798 Cr. 3,2994,818/2,49062.8 3440.08 %23.4 %17.6 % 10.0
Industry Average17,485.33 Cr1,464.4435.86194.440.71%24.91%22.40%7.22

All Competitor Stocks of SKF India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales8486949669671,0391,0551,0781,0771,0951,1501,1251,0921,203
Expenses6995808078448808718648939289471,004920990
Operating Profit148114160123159184215184167203121172213
OPM %17%16%17%13%15%17%20%17%15%18%11%16%18%
Other Income569162910132023202435
Interest0010100000000
Depreciation14141216151617171718191919
Profit before tax139106156123146176208180170208122177229
Tax %24%25%25%28%25%27%25%35%28%26%26%25%24%
Net Profit105791188910912915611612315590132175
EPS in Rs21.2116.0023.8017.9822.1426.1331.5423.5624.8531.2618.2526.7435.36

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,2282,2752,4142,9972,6312,7503,0352,8422,6713,6664,3054,570
Expenses1,9692,0142,1322,6362,2952,3162,5492,4922,2513,1103,5563,853
Operating Profit258261281362336435486349420556749718
OPM %12%11%12%12%13%16%16%12%16%15%17%16%
Other Income68417910187719210436355294
Interest000005892221
Depreciation444954684846465758576775
Profit before tax283253306394376455524387396531733736
Tax %33%34%34%35%35%35%36%25%25%26%28%25%
Net Profit190167203256244296336289298395525552
EPS in Rs36.0531.6238.4548.5346.2557.6467.9258.4660.2279.92106.15111.61
Dividend Payout %21%24%26%31%22%21%18%222%24%18%38%116%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-4.69%21.31%13.51%-13.99%3.11%32.55%32.91%5.14%
Change in YoY Net Profit Growth (%)0.00%26.00%-7.80%-27.50%17.10%29.44%0.36%-27.77%

SKF India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:9%
3 Years:20%
TTM:7%
Compounded Profit Growth
10 Years:12%
5 Years:11%
3 Years:23%
TTM:16%
Stock Price CAGR
10 Years:13%
5 Years:17%
3 Years:7%
1 Year:2%
Return on Equity
10 Years:19%
5 Years:21%
3 Years:23%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:38 pm

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital53535353535149494949494949
Reserves1,1031,2231,3631,6121,7581,7861,6481,8561,5141,8362,2922,6332,244
Borrowings00065348590221816141210
Other Liabilities4444204954194595225105427217138229571,206
Total Liabilities1,5991,6951,9112,1492,3042,4442,2972,4692,3032,6153,1783,6513,510
Fixed Assets348376347298299293284352345402424472502
CWIP59251812353762416552638976
Investments0020191491544419722299
Other Assets1,1921,2941,5261,8201,8211,9601,9061,8791,8902,1582,6883,0812,923
Total Assets1,5991,6951,9112,1492,3042,4442,2972,4692,3032,6153,1783,6513,510

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1991222182611536718133032457690624
Cash from Investing Activity +-101-165-3-174147-265306-154654-33-45-158
Cash from Financing Activity +-46-46-9349-126-225-477-178-652-78-79-204
Net Cash Flow52-89122-99136-12311-2326-53567262

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow258.00261.00281.00297.00302.00350.00396.00327.00402.00540.00735.00706.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days525356597165635680685860
Inventory Days63657165949295921091109890
Days Payable6864825768897284135838694
Cash Conversion Cycle475446679768866454966956
Working Capital Days374444649067716661876048
ROCE %26%23%23%25%21%24%28%19%23%31%34%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%
FIIs6.45%6.37%6.33%6.47%6.36%6.48%6.51%6.42%6.46%6.61%6.77%7.93%
DIIs28.73%28.54%28.26%28.56%29.02%28.97%29.09%29.37%29.20%28.98%29.00%28.12%
Public12.24%12.52%12.84%12.39%12.05%11.98%11.81%11.66%11.77%11.83%11.65%11.38%
No. of Shareholders31,42437,30241,00940,45644,61045,53443,09842,35942,37746,56245,97048,477

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan2,341,2911.921077.02405,0712024-11-23478%
Kotak Emerging Equity Fund - Regular Plan1,724,6292.06793.35405,0712024-11-23325.76%
HDFC Small Cap Fund - Regular Plan1,049,4911.8482.78405,0712024-11-23159.09%
HDFC Hybrid Equity Fund - Regular Plan990,1082.05455.46405,0712024-11-23144.43%
Mirae Asset Large & Midcap Fund980,2201.39450.91405,0712024-11-23141.99%
SBI Blue Chip Fund693,3470.73318.95405,0712024-11-2371.17%
Mirae Asset ELSS Tax Saver Fund547,8951.23252.04405,0712024-11-2335.26%
Mirae Asset Focused Fund493,3902.45226.96405,0712024-11-2321.8%
Mirae Asset Midcap Fund429,6231.43197.63405,0712024-11-236.06%
Axis Midcap Fund405,0710.76186.34405,0712024-11-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)111.60106.2079.9060.20
Diluted EPS (Rs.)111.60106.2079.9060.20
Cash EPS (Rs.)126.69119.6791.4771.94
Book Value[Excl.RevalReserv]/Share (Rs.)542.63473.58381.41316.30
Book Value[Incl.RevalReserv]/Share (Rs.)542.63473.58381.41316.30
Revenue From Operations / Share (Rs.)924.38870.74741.48540.20
PBDIT / Share (Rs.)164.16162.07119.3692.31
PBIT / Share (Rs.)149.07148.55107.8280.59
PBT / Share (Rs.)148.82148.25107.3980.16
Net Profit / Share (Rs.)111.60106.1579.9260.22
NP After MI And SOA / Share (Rs.)111.61106.1779.8960.21
PBDIT Margin (%)17.7518.6116.0917.08
PBIT Margin (%)16.1217.0614.5414.91
PBT Margin (%)16.0917.0214.4814.83
Net Profit Margin (%)12.0712.1910.7711.14
NP After MI And SOA Margin (%)12.0712.1910.7711.14
Return on Networth / Equity (%)20.5622.4120.9419.03
Return on Capital Employeed (%)27.0630.8327.5724.75
Return On Assets (%)15.1116.5115.0212.92
Asset Turnover Ratio (%)1.341.481.490.00
Current Ratio (X)2.953.082.822.35
Quick Ratio (X)2.222.211.841.68
Inventory Turnover Ratio (X)1.691.531.570.00
Dividend Payout Ratio (NP) (%)35.8313.6518.15215.89
Dividend Payout Ratio (CP) (%)31.5612.1115.85180.71
Earning Retention Ratio (%)64.1786.3581.85-115.89
Cash Earning Retention Ratio (%)68.4487.8984.15-80.71
Interest Coverage Ratio (X)670.74530.65283.72214.26
Interest Coverage Ratio (Post Tax) (X)457.01348.54190.97140.78
Enterprise Value (Cr.)19358.2820085.1917090.7610624.18
EV / Net Operating Revenue (X)4.244.674.663.98
EV / EBITDA (X)23.8525.0728.9623.28
MarketCap / Net Operating Revenue (X)4.504.894.774.17
Retention Ratios (%)64.1686.3481.84-115.89
Price / BV (X)7.678.999.287.11
Price / Net Operating Revenue (X)4.504.894.774.17
EarningsYield0.020.020.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of SKF India Ltd as of November 24, 2024 is: 4,313.41

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, SKF India Ltd is Overvalued by 7.73% compared to the current share price 4,675.00

Intrinsic Value of SKF India Ltd as of November 24, 2024 is: 4,908.96

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, SKF India Ltd is Undervalued by 5.00% compared to the current share price 4,675.00

Last 5 Year EPS CAGR: 13.81%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.50%, which is a positive sign.
  2. The company has higher reserves (1,759.08 cr) compared to borrowings (28.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.50 cr) and profit (447.83 cr) over the years.
  1. The stock has a high average Working Capital Days of 61.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 67.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in SKF India Ltd:
    1. Net Profit Margin: 12.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.06% (Industry Average ROCE: 24.91%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 20.56% (Industry Average ROE: 22.4%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 457.01
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.22
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 41.3 (Industry average Stock P/E: 35.86)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

SKF India Ltd. is a Public Limited Listed company incorporated on 12/04/1961 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29130PN1961PLC213113 and registration number is 011980. Currently Company is involved in the business activities of Manufacture of bearings, gears, gearing and driving elements. Company’s Total Operating Revenue is Rs. 3665.89 Cr. and Equity Capital is Rs. 49.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
BearingsChinchwad, Pune Maharashtra 411033investors@skf.com
http://www.skf.com/in
Management
NamePosition Held
Mr. Gopal SubramanyamChairman(NonExe.&Ind.Director)
Mr. Mukund VasudevanManaging Director
Mr. David Leif Henning JohanssonNon Exe.Non Ind.Director
Mr. Karl Robin Joakim LandholmNon Exe.Non Ind.Director
Mr. Manish BhatnagarNon Exe.Non Ind.Director
Ms. Anu WakhluInd. Non-Executive Director

FAQ

What is the latest intrinsic value of SKF India Ltd?

The latest intrinsic value of SKF India Ltd as on 23 November 2024 is ₹4313.41, which is 7.73% lower than the current market price of ₹4,675.00.

What is the Market Cap of SKF India Ltd?

The Market Cap of SKF India Ltd is 23,122 Cr..

What is the current Stock Price of SKF India Ltd as on 23 November 2024?

The current stock price of SKF India Ltd as on 23 November 2024 is 4,675.

What is the High / Low of SKF India Ltd stocks in FY 2024?

In FY 2024, the High / Low of SKF India Ltd stocks is 7,350/4,024.

What is the Stock P/E of SKF India Ltd?

The Stock P/E of SKF India Ltd is 41.3.

What is the Book Value of SKF India Ltd?

The Book Value of SKF India Ltd is 464.

What is the Dividend Yield of SKF India Ltd?

The Dividend Yield of SKF India Ltd is 2.78 %.

What is the ROCE of SKF India Ltd?

The ROCE of SKF India Ltd is 29.2 %.

What is the ROE of SKF India Ltd?

The ROE of SKF India Ltd is 21.9 %.

What is the Face Value of SKF India Ltd?

The Face Value of SKF India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in SKF India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE