SKF India Limited

Industrials — Tools & Accessories · NSE

₹1,460.00+₹21.40 (+1.49%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of SKF India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SKF India Limited engages in the manufacturing, trading, and servicing bearings, seals, and motion technologies in India and internationally.

IndustryTools & Accessories

SectorIndustrials

Employees970

Annual revenue₹3,639 Cr

How does it make money?

Turns over ₹3,639 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 970 employees supports ₹3.75 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.75 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.0% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 9.4% and earnings to grow about 12.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.4%

Est. earnings growth+12.5%

Analysts7

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -14% while net margin moved -41% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-14%

Margin effect-41%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.9% a year
✗ Profit has declined at 20.3% a year
✗ Latest-year revenue growth of -54.2% is below the longer-term trend — momentum is fading
✗ Profit fell 47.7% in the latest year

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.5x

3Y Median

40.1x

40 monthly readings · mean 35.2x · range 12.3x–60.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 14% below its 3y median of 40.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 61% below the peer median of 88.8x.

vs. its own history

Fair

40.1x median over 40 months · -14%

vs. sector peers

Cheap

88.8x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 80% over 3 years.
High return on capital employed
ROCE of 31.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Profit is decliningFinancial
Net profit is down 49% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.5 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 80% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹134 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 18.9% to 15.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹134 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 29%✓ 31.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 40.1x✓ 34.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹7,218 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.5x

Fair

Fairly valued against the generic band

P/B Ratio

5.43x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹42.3

Profitable

Profitable on a per-share basis

ROE

20.0%

Strong

Strong capital efficiency

ROCE

31.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

-54.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-47.7%

Falling

Profits are shrinking

Dividend Yield

2.74%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹134 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

24.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.2%

Average

Average margins

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

2.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1473.5 / 1525.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,234 Cr	₹4,488 Cr	₹4,831 Cr	₹3,639 Cr	-4.9%
EBITDA	₹801 Cr	₹812 Cr	₹848 Cr	₹559 Cr	-11.3%
EBITDA Margin	18.9%	18.1%	17.6%	15.4%	—
PAT (Net Profit)	₹525 Cr	₹552 Cr	₹566 Cr	₹266 Cr	-20.3%
EPS	₹106.2	₹111.6	₹114.5	₹53.8	-20.3%
ROE	22.4%	20.6%	21.8%	20.0%	—
ROCE	30.8%	27.1%	28.8%	31.7%	—
Total Debt	₹14 Cr	₹12 Cr	₹7 Cr	₹3 Cr	-41.4%
Free Cash Flow	₹584 Cr	₹494 Cr	₹72 Cr	₹134 Cr	-38.8%

🔴 Revenue has shrunk at 4.9% a year over 3 years.

🔴 EBITDA has shrunk at 11.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.9% to 15.4% over 3 years (-3.5 pts).

🔴 PAT (Net Profit) has shrunk at 20.3% a year over 3 years.

🔴 EPS has shrunk at 20.3% a year over 3 years.

🔴 ROE has fallen from 22.4% to 20.0% over 3 years (-2.4 pts).

🟡 ROCE has held roughly flat at 31.7% over 3 years.

🟢 Total Debt has shrunk at 41.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 38.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,079 Cr

Total Liabilities

₹750 Cr

Cash & Equivalents

₹292 Cr

Operating Cash Flow

₹363 Cr

Capex

-₹229 Cr

Shareholding (proxy)

Institutional Holding

27.6%

Insider Holding

53.2%

Corporate Actions

Next Earnings

13 Nov 2026

Dividend Rate

₹40

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 3 Hold · 1 Sell

Target Price (Mean)

₹1,837.33

+25.8% vs CMP

Target Range

₹1,500 – ₹2,040

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed1 negative2 general

SKF India (NSEI:SKFINDIA) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

SKF India Share Price Near 52-Week Low: Key View

Univest, 12 Oct

Skf India (Industrial) Ltd | Stock Share Price Live

MarketSmith India, 04 Apr

SKF India Reports Q1 FY27 Revenue Of ₹587.8 Crore Post-Demerger

Sahi, 17 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Stock Seesaw: SKF India Swings To Green, Surges Over 12% Despite Weak Q1

NDTV Profit, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SKF India Industrial Q1 net profit falls 14% as costs outpace revenue growth

scanx.trade, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-54.2%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Risk

MiddlingBusiness Quality · Valuation

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑