SKF India (SKFINDIA)
Slow GrowerFairStock Score: 17/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,573.3 |
| Market Cap | ₹7,778.08 Cr |
| P/E Ratio | 37.18 |
| ROCE | 28.82% |
| ROE | 13.54% |
| Dividend Yield | 2.63% |
| Profit Growth | -47.86% |
| Debt/Equity | 0 |
| Sales Growth | -53.77% |
| Promoter Holding | 52.58% |
| 52-Week Range | ₹1,404 — ₹5,074 |
| Sector | Industrial Products |
| Book Value | ₹268.91 |
Strengths
- Zero debt on the balance sheet, providing financial stability
- High ROE of 21.32% and ROCE of 28.82% demonstrate strong capital efficiency
- Promoter holding of 52.58% indicates aligned long-term ownership
- Book value of ₹463.12 offers a tangible asset base relative to price
Concerns
- Profit growth of -14.54% and weak sales growth of 3.21% indicate a slowdown
- P/E of 23.89 and PEG of 7.44 suggest valuation is expensive for stagnant earnings
- Piotroski F-Score of 4/9 points to deteriorating financial fundamentals
- Price near 52-week low of ₹1,404 but still down 66% from high, with no clear catalyst
AI Analysis
When I look at SKF India, I see a quality business with a strong balance sheet, but the current price asks me to pay a premium for a company that is currently stumbling. The zero debt is a comfort—no leverage means no financial distress in a downturn. The return on equity of 21.32% and ROCE of 28.82% show that the business has historically generated excellent returns on capital without borrowing. That is exactly the kind of franchise I admire. Promoter holding of 52.58% is healthy and aligns interests. But I must be honest: the latest quarter shows net profit of only ₹62 Cr on sales of ₹577 Cr, and the trailing profit growth is down 14.54%. Sales growth of just 3.21% is sluggish, not the stuff of a fast grower. The Piotroski F-Score of 4/9 is a red flag—it tells me the financial health has weakened. Yet the market still prices the stock at 23.89 times earnings and a PEG of 7.44, which is far too high for a company whose earnings are shrinking. The price has fallen from a 52-week high of ₹5,074 to ₹1,736, but a falling knife is not automatically a bargain; I need to see earnings stabilize or improve first. The dividend yield of 0.83% is negligible. This looks like a good business trapped in a slow-growth phase with valuation still elevated. I would not be a buyer at this price. I would wait for either a meaningful earnings recovery or a much lower price—ideally both. As Graham said, price is what you pay, value is what you get. Here, the value is not yet apparent.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer