Why is SKF India Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 12.22% and Operating profit at 5.34% over the last 5 years
2
Negative results in Dec 24
- PBT LESS OI(Q) At Rs 99.55 cr has Fallen at -36.2% (vs previous 4Q average)
- PAT(Q) At Rs 109.50 cr has Fallen at -21.9% (vs previous 4Q average)
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.89 times
3
Stock is technically in a Mildly Bearish range
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROE of 24.4, it has a Expensive valuation with a 8.3 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -15.13%, its profits have risen by 7.7% ; the PEG ratio of the company is 4.6
- At the current price, the company has a high dividend yield of 3.5
5
Below par performance in long term as well as near term
- Along with generating -15.13% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Bearings)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is SKF India for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
SKF India
-14.91%
-0.49
30.66%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
12.22%
EBIT Growth (5y)
5.34%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.79
Tax Ratio
25.00%
Dividend Payout Ratio
116.48%
Pledged Shares
0
Institutional Holding
35.49%
ROCE (avg)
39.83%
ROE (avg)
22.58%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
42
Price to Book Value
8.27
EV to EBIT
31.82
EV to EBITDA
27.91
EV to Capital Employed
12.00
EV to Sales
3.71
PEG Ratio
4.59
Dividend Yield
3.52%
ROCE (Latest)
41.25%
ROE (Latest)
24.44%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
5What is working for the Company
ROCE(HY)
Highest at 32.47%
NET SALES(Q)
Highest at Rs 1,256.10 cr
-12What is not working for the Company
PBT LESS OI(Q)
At Rs 99.55 cr has Fallen at -36.2% (vs previous 4Q average
PAT(Q)
At Rs 109.50 cr has Fallen at -21.9% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.89 times
PBDIT(Q)
Lowest at Rs 121.23 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 9.65%
Loading Valuation Snapshot...
Here's what is working for SKF India
Net Sales - Quarterly
Highest at Rs 1,256.10 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for SKF India
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 99.55 cr has Fallen at -36.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 156.14 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 109.50 cr has Fallen at -21.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 140.13 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 121.23 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 9.65%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 99.55 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 5.89 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 47.51 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income