SKF India (SKFINDIA)

FairStock Score: 17/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer