SKF India Ltd (SKFINDIA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Apcotex Industri

Grindwell Norton

Tinna Rubber

Tenneco Clean

Borosil Renew.

Prec. Wires (I)

Carborundum Uni.

KSH Internationa

Pix Transmission

SKF India

SKF India Indus.

Why is SKF India Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -7.15% of over the last 5 years

With a fall in Net Sales of -45.73%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
NET SALES(Q) At Rs 594.54 cr has Fallen at -45.7% (vs previous 4Q average)
PAT(Q) At Rs -19.76 cr has Fallen at -115.3% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Lowest at 5.25 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.73% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is SKF India for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

SKF India

-33.73%

-1.20

28.12%

Sensex

-1.97%

-0.15

13.56%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.66%

EBIT Growth (5y)

-7.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.98

Tax Ratio

38.64%

Dividend Payout Ratio

12.67%

Pledged Shares

Institutional Holding

34.06%

ROCE (avg)

39.41%

ROE (avg)

21.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.73

EV to EBIT

19.73

EV to EBITDA

16.30

EV to Capital Employed

7.09

EV to Sales

1.94

PEG Ratio

2.35

Dividend Yield

2.70%

ROCE (Latest)

35.92%

ROE (Latest)

22.55%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

ROCE(HY)

Highest at 35.79%

-31What is not working for the Company

NET SALES(Q)

At Rs 594.54 cr has Fallen at -45.7% (vs previous 4Q average

PAT(Q)

At Rs -19.76 cr has Fallen at -115.3% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.25 times

PBDIT(Q)

Lowest at Rs 33.29 cr.

PBT LESS OI(Q)

Lowest at Rs 17.09 cr.

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 299.90 cr

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.60%

NON-OPERATING INCOME(Q)

is 68.26 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -4.00

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Here's what is not working for SKF India

Net Sales - Quarterly

At Rs 594.54 cr has Fallen at -45.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,095.56 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 17.09 cr has Fallen at -88.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 154.10 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -19.76 cr has Fallen at -115.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 128.89 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 33.29 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 17.09 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 5.25 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin - Quarterly

Lowest at 5.60%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Non Operating Income - Quarterly

is 68.26 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs -4.00

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 299.90 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 36.76 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income