SKFINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

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📊 Fundamental Analysis Report

• Stock Code: SKFINDIA
• Market Cap: ₹10,577 Cr
• Current Price: ₹2,143
• 52W High/Low: ₹2,512 / ₹1,652
• EPS: ₹106
• Stock P/E: 20.1 vs Industry P/E: 50.5 🟢
• PEG Ratio: 1.58 🟡 (Fairly Valued)
• Book Value: ₹526 | P/B Ratio: ~4.07 ❗
• ROE: 21.4% | ROCE: 28.8% 🔥
• Debt to Equity: 0.00 🟢 (Debt-Free)
• Dividend Yield: 0.68% 🚫
• Quarterly PAT: ₹119 Cr (↓41.4%)
• RSI: 39.4 | MACD: -20.7 📉

✅ Positive

• Excellent ROE and ROCE indicate strong profitability and efficient capital utilization.
• Debt-free balance sheet enhances financial stability and operational flexibility.
• Stock trades at a discount to industry P/E, suggesting relative undervaluation.
• DII holding increased by 0.40%, reflecting growing domestic institutional confidence.

⚠️ Limitation

• Quarterly PAT dropped significantly from ₹203 Cr to ₹119 Cr, indicating earnings volatility.
• High P/B ratio may deter value investors.
• FII holding declined by 0.57%, signaling cautious foreign sentiment.
• Technical indicators (MACD, RSI) suggest weak short-term momentum.

📉 Company Negative News

• Quarterly profit variation of -25.4% reflects pressure on margins or demand.

📈 Company Positive News

• Strong historical return metrics and debt-free status support long-term resilience.
• Stock has delivered 57.1% return over the past year, indicating solid investor interest.

🏦 Industry

• SKFINDIA operates in the precision engineering and bearing manufacturing sector.
• Industry P/E of 50.5 is significantly higher, suggesting SKFINDIA trades at a discount.
• Sector benefits from industrial automation, automotive demand, and infrastructure expansion.

🧭 Conclusion

• Entry Zone: ₹2,100–₹2,140 (near support and RSI neutral)
• Long-Term View: Strong fundamentals and sector positioning support long-term holding. Accumulate on dips while monitoring earnings recovery and technical indicators.