SKF India (Industrial) Limited

Industrials — Tools & Accessories · NSE

₹2,515.00+₹4.60 (+0.18%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently 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 (Industrial) 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 (Industrial) Limited manufactures and sells bearings products in India and internationally.

IndustryTools & Accessories

SectorIndustrials

Employees556

Annual revenue₹3,344 Cr

How does it make money?

Turns over ₹3,344 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 556 employees supports ₹6.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.01 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?Little sign of one

Returns on capital of 14.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 10.3% and earnings to grow about 20.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.3%

Est. earnings growth+20.4%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 1 years revenue moved +364% while net margin moved -61% 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+364%

Margin effect-61%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

64/ 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

59.9x

1.0Y Median

89.5x

12 monthly readings · mean 88.2x · range 57.2x–117.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 33% below its 1.0y median of 89.5x. 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 33% below the peer median of 88.8x.

vs. its own history

Cheap

89.5x median over 12 months · -33%

vs. sector peers

Cheap

88.8x median of 3 peers · -33%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.2x

PEG

0.75

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 1 years.
Return on equity is rising
ROE has improved from 9.3% to 14.7%.
Return on capital is rising
ROCE has improved from 12.4% to 14.9%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 126% over 1 years, from ₹2 Cr to ₹5 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.6 points, from 24.1% to 13.5%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 33% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 33% 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 ₹70 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 24.1% to 13.5%. 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 273% a year✓ 364.1% CAGR
Latest reported year was 364.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹70 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹12,434 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

59.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.42x

Rich

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

EPS (TTM)

₹41.96

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

364.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

79.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.19%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹70 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

29.0x

Improving

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

Operating Margin

8.9%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2736.5 / 2804.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

18.1

Oversold zone

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹721 Cr	₹3,344 Cr	+364.1%
EBITDA	₹174 Cr	₹453 Cr	+160.6%
EBITDA Margin	24.1%	13.5%	—
PAT (Net Profit)	₹121 Cr	₹218 Cr	+79.4%
EPS	₹24.54	₹44	+79.3%
ROE	9.3%	14.7%	—
ROCE	12.4%	14.9%	—
Total Debt	₹2 Cr	₹5 Cr	+126.2%
Free Cash Flow	-₹28 Cr	₹70 Cr	—

🟢 Revenue has grown at 364.1% a year over 1 years.

🟢 EBITDA has grown at 160.6% a year over 1 years.

🔴 EBITDA Margin has fallen from 24.1% to 13.5% over 1 years (-10.6 pts).

🟢 PAT (Net Profit) has grown at 79.4% a year over 1 years.

🟢 EPS has grown at 79.3% a year over 1 years.

🟢 ROE has risen from 9.3% to 14.7% over 1 years (+5.5 pts).

🟢 ROCE has risen from 12.4% to 14.9% over 1 years (+2.5 pts).

🔴 Total Debt has grown at 126.2% a year over 1 years.

🟢 Free Cash Flow has turned positive, from -₹28 Cr to ₹70 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,675 Cr

Total Liabilities

₹1,198 Cr

Cash & Equivalents

₹569 Cr

Operating Cash Flow

₹164 Cr

Capex

-₹94 Cr

Shareholding (proxy)

Institutional Holding

30.5%

Insider Holding

52.6%

Corporate Actions

Dividend Rate

₹30

Ex-Dividend Date

17 Aug 2026

Analyst Consensus

Recommendations

2 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹2,982

+18.6% vs CMP

Target Range

₹2,584 – ₹3,437

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

2 mixed4 general

SKF India (Industrial) vs Nifty 50: 6M Return +17.25% vs -6.36%

Univest, 12 Oct

Skf India (Industrial) Ltd | Stock Share Price Live

MarketSmith India, 04 Apr

SKF India shareholders approve Vasudevan as non-executive director

scanx.trade, 15 Oct

SKF India Industrial slides as Q4 PAT drops 2% YoY to Rs 119 crore

Business Standard, 13 MayResults

🟡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 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.

SKF India (Industrial) Share Price Forecast to 2030

Univest, 29 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑