SKFINDIA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📈 Positive

• 📘 Strong fundamentals: ROCE of 28.8% and ROE of 21.4% reflect excellent capital efficiency.
• 📉 P/E of 20.0 vs industry P/E of 50.4 suggests undervaluation.
• 📈 EPS of ₹106 and dividend yield of 0.68% support earnings quality and shareholder returns.
• 📉 Debt-to-equity ratio of 0.00 highlights a clean balance sheet.
• 📈 DII holding increased by 0.40%, indicating growing domestic institutional confidence.

⚠️ Limitation

• 📉 RSI at 36.7 and MACD at -26.5 indicate weak momentum and bearish sentiment.
• 📉 Price is below both DMA 50 (₹2,201) and DMA 200 (₹2,162), confirming short-term downtrend.
• 📉 Volume (12,897) is slightly below 1-week average (14,073), showing low participation.
• 📉 FII holding declined by 0.57%, reflecting cautious foreign sentiment.
• 📉 PAT dropped from ₹203 Cr. to ₹119 Cr., a 25.4% decline QoQ.
• 📉 PEG ratio of 1.57 implies moderate valuation relative to growth.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over margin pressure and demand slowdown in industrial bearings and automotive segments.

✅ Company Positive News

• ⚙️ SKFINDIA continues to benefit from long-term demand in manufacturing, automation, and mobility solutions.
• 📈 Operational efficiency and product innovation support long-term growth visibility.

🏦 Industry

• 🏭 Operates in the industrial and automotive components sector, which is cyclical and sensitive to manufacturing and infrastructure trends.
• 📊 Industry P/E of 50.4 reflects high growth expectations and premium valuations.

🧾 Conclusion

• 📉 SKFINDIA is fundamentally strong but technically weak, making it a cautious swing trade candidate with potential for rebound from oversold levels.
• 📍 Optimal entry: ₹2,100–₹2,120 (near support and RSI bottom).
• 🚪 Exit if held: ₹2,190–₹2,210 (near DMA 50) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of MACD crossover and volume trends.

I can also compare SKFINDIA’s setup with peers like Schaeffler India or Timken India to help you spot stronger technical momentum.