SKF India Limited Fundamental Analysis (NSE: SKFINDIA.NS)
SKF India Limited Fundamental Analysis (NSE: SKFINDIA.NS)
SKF India Limited (NSE: SKFINDIA.NS) shows weak financial fundamentals with a PE ratio of 37.69, profit margin of 6.83%, and ROE of 8.89%. The company generates $30.7B 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 66.6/100 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.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSKFINDIA.NS demonstrates superior asset utilization.
Valuation Score
ModerateSKFINDIA.NS shows balanced valuation metrics.
Growth Score
ModerateSKFINDIA.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSKFINDIA.NS maintains a strong and stable balance sheet.
Profitability Score
WeakSKFINDIA.NS struggles to sustain strong margins.
Key Financial Metrics
Is SKFINDIA.NS Expensive or Cheap?
P/E Ratio
SKFINDIA.NS trades at 37.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SKFINDIA.NS's PEG of -0.63 indicates potential undervaluation.
Price to Book
The market values SKF India Limited at 5.94 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.63 times EBITDA. This signals the market has high growth expectations.
How Well Does SKFINDIA.NS Make Money?
Net Profit Margin
For every $100 in sales, SKF India Limited keeps $6.83 as profit after all expenses.
Operating Margin
Core operations generate 9.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.89 in profit for every $100 of shareholder equity.
ROA
SKF India Limited generates $10.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SKF India Limited produces operating cash flow of $3.20B, showing steady but balanced cash generation.
Free Cash Flow
SKF India Limited produces free cash flow of $1.26B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $25.54 in free cash annually.
FCF Yield
SKFINDIA.NS converts 1.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How SKFINDIA.NS Stacks Against Its Sector Peers
| Metric | SKFINDIA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.69 | 29.55 | Worse (Expensive) |
| ROE | 8.89% | 1092.00% | Weak |
| Net Margin | 6.83% | -25130.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 2.06 | 21.72 | Strong Liquidity |
| ROA | 10.08% | -1325773.00% (disorted) | Strong |
SKFINDIA.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
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