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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SKF India Ltd

About the Company - SKF India Ltd

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. Manish BhatnagarManaging Director
Mr. Shailesh SharmaWhole Time Director
Ms. Ingrid Viktoria Van CampNon Executive Director
Mr. Aldo CedroneNon Executive Director
Mr. Gopal SubramanyamInd. Non-Executive Director
Ms. Anu WakhluInd. Non-Executive Director

SKF India Ltd. Share Price Update

Share PriceValue
Today₹4,519.90
Previous Day₹4,682.85

Basic Stock Data of SKF India Ltd

Market Cap 22,226 Cr.
Current Price 4,496
High / Low5,535/3,960
Stock P/E44.5
Book Value 483
Dividend Yield0.90 %
ROCE34.5 %
ROE24.8 %
Face Value 10.0

Data Source: screener.in

Competitors of SKF India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NRB Bearings Ltd 3,184 Cr. 328402/12512.6 69.21.51 %16.6 %16.1 % 2.00
Menon Bearings Ltd 786 Cr. 140166/90.527.7 24.01.58 %32.1 %26.6 % 1.00
Schaeffler India Ltd 44,880 Cr. 2,8713,726/2,61249.2 3080.84 %26.8 %20.0 % 2.00
Timken India Ltd 21,090 Cr. 2,8043,576/2,65959.4 2940.05 %28.0 %21.1 % 10.0
Industry Average213.5 Cr11837.23173.81%25.88%20.95%3.75

SKF India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales7038198486949669671,0391,0551,0781,0771,0951,1501,125
Expenses6116386995808078448808718648939289471,004
Operating Profit92180148114160123159184215184167203121
OPM %13%22%17%16%17%13%15%17%20%17%15%18%11%
Other Income8956916291013202320
Interest1000101000000
Depreciation15151414121615161717171819
Profit before tax84174139106156123146176208180170208122
Tax %23%26%24%25%25%28%25%27%25%35%28%26%26%
Net Profit65128105791188910912915611612315590
EPS in Rs13.1525.9121.2116.0023.8017.9822.1426.1331.5423.5624.8531.2618.25

SKF India Ltd Quarterly Chart

SKF India Ltd Profit & Loss

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,4352,2282,2752,4142,9972,6312,7503,0352,8422,6713,6664,3054,447
Expenses2,1361,9692,0142,1322,6362,2952,3162,5492,4922,2513,1103,5563,771
Operating Profit298258261281362336435486349420556749675
OPM %12%12%11%12%12%13%16%16%12%16%15%17%15%
Other Income5468417910187719210436355276
Interest-0-0-0-0-0-05892221
Depreciation39444954684846465758576771
Profit before tax314283253306394376455524387396531733679
Tax %34%33%34%34%35%35%35%36%25%25%26%28%
Net Profit208190167203256244296336289298395525484
EPS in Rs39.5436.0531.6238.4548.5346.2557.6467.9258.4660.2279.92106.1597.92
Dividend Payout %19%21%24%26%31%22%21%18%222%24%18%38%

SKF India Ltd Profit & Loss Yearly Chart

SKF India Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:9%
3 Years:15%
TTM:5%
Compounded Profit Growth
10 Years:11%
5 Years:12%
3 Years:26%
TTM:-2%
Stock Price CAGR
10 Years:21%
5 Years:18%
3 Years:26%
1 Year:2%
Return on Equity
10 Years:18%
5 Years:20%
3 Years:22%
Last Year:25%

SKF India Ltd Balance Sheet

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital53535353535351494949494949
Reserves9591,1031,2231,3631,6121,7581,7861,6481,8561,5141,8362,2922,339
Borrowings-0-0-0-0653485902218161415
Other Liabilities496444420495419459522510542721713822829
Total Liabilities1,5081,5991,6951,9112,1492,3042,4442,2972,4692,3032,6153,1783,232
Fixed Assets318348376347298299293284352345402424485
CWIP36592518123537624165526348
Investments-0-0-02019149154441972227
Other Assets1,1531,1921,2941,5261,8201,8211,9601,9061,8791,8902,1582,6882,692
Total Assets1,5081,5991,6951,9112,1492,3042,4442,2972,4692,3032,6153,1783,232

SKF India Ltd Reserves and Borrowings Chart

SKF India Ltd Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1521991222182611536718133032457690
Cash from Investing Activity -52-101-165-3-174147-265306-154654-33-45
Cash from Financing Activity -44-46-46-9349-126-225-477-178-652-78-79
Net Cash Flow5652-89122-99136-12311-2326-53567

SKF India Ltd Financial Efficiency Indicators

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days565253565971656356806858
Inventory Days65636571659492959210911098
Days Payable7468648257688972841358386
Cash Conversion Cycle474754466797688664549669
Working Capital Days343744446490677166618759
ROCE %34%26%23%23%25%21%24%28%19%23%31%34%

SKF India Ltd Financial Efficiency Indicators Chart

SKF India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%52.58%
FIIs5.31%5.11%6.45%6.37%6.33%6.47%6.36%6.48%6.51%6.42%6.46%6.61%
DIIs29.20%27.90%28.73%28.54%28.26%28.56%29.02%28.97%29.09%29.37%29.20%28.98%
Public12.92%14.42%12.24%12.52%12.84%12.39%12.05%11.98%11.81%11.66%11.77%11.83%
No. of Shareholders31,41130,83931,42437,30241,00940,45644,61045,53443,09842,35942,37746,562

SKF India Ltd Shareholding Pattern Chart

No. of SKF India Ltd Shareholders

SKF India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan23412911.921077.02
Kotak Emerging Equity Fund - Regular Plan17246292.06793.35
HDFC Small Cap Fund - Regular Plan10494911.8482.78
HDFC Hybrid Equity Fund - Regular Plan9901082.05455.46
Mirae Asset Large & Midcap Fund9802201.39450.91
SBI Blue Chip Fund6933470.73318.95
Mirae Asset ELSS Tax Saver Fund5478951.23252.04
Mirae Asset Focused Fund4933902.45226.96
Mirae Asset Midcap Fund4296231.43197.63
Axis Midcap Fund4050710.76186.34

SKF India Ltd ROCE Trend

SKF India Ltd EPS Trend

SKF India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21
FaceValue10.0010.0010.00
Basic EPS (Rs.)106.2079.9060.20
Diluted EPS (Rs.)106.2079.9060.20
Cash EPS (Rs.)119.6791.4771.94
Book Value[Excl.RevalReserv]/Share (Rs.)473.58381.41316.30
Book Value[Incl.RevalReserv]/Share (Rs.)473.58381.41316.30
Revenue From Operations / Share (Rs.)870.74741.48540.20
PBDIT / Share (Rs.)162.07119.3692.31
PBIT / Share (Rs.)148.55107.8280.59
PBT / Share (Rs.)148.25107.3980.16
Net Profit / Share (Rs.)106.1579.9260.22
NP After MI And SOA / Share (Rs.)106.1779.8960.21
PBDIT Margin (%)18.6116.0917.08
PBIT Margin (%)17.0614.5414.91
PBT Margin (%)17.0214.4814.83
Net Profit Margin (%)12.1910.7711.14
NP After MI And SOA Margin (%)12.1910.7711.14
Return on Networth / Equity (%)22.4120.9419.03
Return on Capital Employeed (%)30.8327.5724.75
Return On Assets (%)16.5115.0212.92
Asset Turnover Ratio (%)1.481.490.00
Current Ratio (X)3.082.822.35
Quick Ratio (X)2.211.841.68
Inventory Turnover Ratio (X)1.531.570.00
Dividend Payout Ratio (NP) (%)13.6518.15215.89
Dividend Payout Ratio (CP) (%)12.1115.85180.71
Earning Retention Ratio (%)86.3581.85-115.89
Cash Earning Retention Ratio (%)87.8984.15-80.71
Interest Coverage Ratio (X)530.65283.72214.26
Interest Coverage Ratio (Post Tax) (X)348.54190.97140.78
Enterprise Value (Cr.)20085.1917090.7610624.18
EV / Net Operating Revenue (X)4.674.663.98
EV / EBITDA (X)25.0728.9623.28
MarketCap / Net Operating Revenue (X)4.894.774.17
Retention Ratios (%)86.3481.84-115.89
Price / BV (X)8.999.287.11
Price / Net Operating Revenue (X)4.894.774.17
EarningsYield0.020.020.02

SKF India Ltd Profitability Ratios (%)

SKF India Ltd Liquidity Ratios

SKF India Ltd Liquidity Ratios (%)

SKF India Ltd Interest Coverage Ratios (X)

SKF India Ltd Valuation Ratios

Fair Value / Intrinsic Value of SKF India Ltd

Fair Value: ₹5378.36

The stock is undervalued by 19.63% compared to the current price ₹4496

*Investments are subject to market risks

Strength and Weakness of SKF India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 25.92%, which is a positive sign.
  2. The company has higher reserves (1,637.62 cr) compared to borrowings (27.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.46 cr) and profit (433.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 112.32 and average Dividend Yield of 15.50%.
  2. The stock has a high average Working Capital Days of 60.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 66.25, which may not be favorable.

Should I Buy SKF India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in SKF India Ltd:
    1. Net Profit Margin: 12.19%
      • 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: 30.83% (Industry Average ROCE: 25.88%)
      • 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. Interest Coverage Ratio (Post Tax): 348.54
      • 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.
    4. Quick Ratio: 2.21
      • 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.
    5. ✗ Stock P/E: 44.5 (Industry average Stock P/E: 37.18)
      • 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.
    6. ✗ Total Debt / Equity: N/A
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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