SKFINDIA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.3

📊 Fundamental & Technical Analysis Summary

Metric Value Interpretation

Market Cap ₹23,922 Cr Large-cap, stable

Current Price ₹4,842 Near 50-DMA, below recent highs

52W High/Low ₹5,738 / ₹3,541 15% off highs; strong recovery zone

Stock P/E 42.3 Slightly below industry PE (49.0)

PEG Ratio 3.32 High; suggests expensive growth

ROE / ROCE 21.4% / 28.8% Excellent capital efficiency

Dividend Yield 0.30% Low, but consistent

Debt-to-Equity 0.00 Debt-free; strong balance sheet

Quarterly PAT ₹203 Cr Up 16% QoQ; strong earnings momentum

RSI / MACD 49.2 / 47.4 Neutral to bullish setup

DMA 50 / 200 ₹4,723 / ₹4,562 Trading above key averages

✅ Long-Term Investment Potential

SKF India is a high-quality compounder with

Strong ROE/ROCE and zero debt

Consistent EPS growth and expanding margins

Leadership in industrial bearings and automotive components

Upcoming demerger of industrial and automotive businesses, unlocking value

1

2

5-Year Return: +186% EPS Growth Forecast (FY26): +15.1%

3

Forward PE: ~36.7 — undervalued vs historical average

4

📉 Ideal Entry Price Zone

Buy Zone: ₹4,400–₹4,650

Based on historical support, 200-DMA, and breakout levels

5

Below ₹4,400 offers deep value; above ₹4,900 is momentum-driven

🧭 If You Already Hold SKF India

Exit Strategy / Holding Period Guidance

Hold Long-Term: 3–5 years for compounding returns

Target Zones

2026: ₹7,200–₹7,400

6

2030: ₹22,000+ (based on ML forecast)

6

Partial Exit: Near ₹5,900–₹6,200 if short-term goals met

Stop Loss: ₹4,280 (major support zone)

Why Hold?

Strong fundamentals

Debt-free balance sheet

Demerger catalyst

High institutional interest

Stable margins and earnings growth

Would you like a peer comparison with Timken India or AIA Engineering to evaluate alternatives in the industrial space?

1

www.angelone.in

2

mnacritique.mergersindia.com

3

trendlyne.com

4

trendlyne.com

5

in.tradingview.com

+1 more

Edit in a page