SKF India Limited
SKF India Limited Fundamental Analysis
SKF India Limited (SKFINDIA.BO) shows moderate financial fundamentals with a PE ratio of 18.40, profit margin of 11.16%, and ROE of 19.09%. The company generates $43.8B in annual revenue with moderate year-over-year growth of 7.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SKFINDIA.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSKFINDIA.BO demonstrates superior asset utilization.
Valuation Score
ExcellentSKFINDIA.BO trades at attractive valuation levels.
Growth Score
ModerateSKFINDIA.BO shows steady but slowing expansion.
Financial Health Score
ExcellentSKFINDIA.BO maintains a strong and stable balance sheet.
Profitability Score
WeakSKFINDIA.BO struggles to sustain strong margins.
Key Financial Metrics
Is SKFINDIA.BO Expensive or Cheap?
P/E Ratio
SKFINDIA.BO trades at 18.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SKFINDIA.BO's PEG of -2.09 indicates potential undervaluation.
Price to Book
The market values SKF India Limited at 3.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.90 times EBITDA. This signals the market has high growth expectations.
How Well Does SKFINDIA.BO Make Money?
Net Profit Margin
For every $100 in sales, SKF India Limited keeps $11.16 as profit after all expenses.
Operating Margin
Core operations generate 17.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.09 in profit for every $100 of shareholder equity.
ROA
SKF India Limited generates $12.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SKF India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
SKF India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SKFINDIA.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How SKFINDIA.BO Stacks Against Its Sector Peers
| Metric | SKFINDIA.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.40 | 26.71 | Better (Cheaper) |
| ROE | 19.09% | 1311.00% | Weak |
| Net Margin | 11.16% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 2.57 | 10.53 | Strong Liquidity |
| ROA | 12.63% | -1537638.00% (disorted) | Strong |
SKFINDIA.BO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SKF India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
95.82%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-38.42%
Industry Style: Cyclical, Value, Infrastructure
Declining