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SKF India Limited (SKFINDIA) Fair Value & Analysis

Industrials · IN · Market cap ₹78.8B

SI SKF India Limited SKFINDIA · BSE
Price₹1,594
Fair Value₹681.01
Upside-57.3%
Quality73/100
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Strengths

Solidly profitable · 10.6% net margin
generates free cash flow
Wide moat 67/100

Risks

!Trades 134% ABOVE our fair value of ₹681.01
!Mixed Growth (revenue 5y +6.5 %/yr)
Mixed Growth (revenue 5y +6.5 %/yr)
Solidly profitable · 10.6% net margin
generates free cash flow
Wide moat 67/100
Evidence: High Range ₹452.94 – ₹1,073 Share as image

Fair value as of: Aug 24, 2026

From 22 valuation models · updated today

Share price +6.3% over the past month.

A solid business, but screening 57% overvalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • A high-quality business (quality 73/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹1,073). The favourable scenario is already priced in.
  • A fairly wide model range (₹452.94 to ₹1,073) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹3,082 ₹915.68 Fair Value ₹681.01 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range ₹915.68 – ₹3,082 · fair‑value band ₹452.94 – ₹1,073 · the ₹1,594 price screens above the ₹681.01 fair value. Dashed = 300-day average. As of Aug 24, 2026.

Full chart & analysis →

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Analysis

SKF India Limited (SKFINDIA) currently trades at ₹1,594, while our model-based Fair Value estimate is ₹681.01, implying the stock looks roughly 57.3% overvalued today. The Quality Score stands at 73/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, SKF India Limited generated revenue of ₹50.6B at a net margin of 10.6%. Revenue grew 5.2% year over year. It earns a return on equity of 21.3%. The stock trades on a trailing P/E of 14.7. Fundamentals as of Aug 24, 2026

Our scenario range runs from ₹452.94 (bear case) to ₹1,073 (bull case); at ₹1,594, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 33% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -47% fair-value upside, at -57%, SKFINDIA screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹350.90 ₹464.28 ₹1,816 76
Growth DCF ₹349.59 ₹456.67 ₹605.43 72
Growth-Adj P/E ₹617.05 ₹881.50 ₹1,146 68
All 22 models by family
DCF Models
FCF DCF ₹340.02 ₹452.69 ₹616.02 38
Owner Earnings ₹300.26 ₹396.98 ₹537.18 31
5Y Revenue Exit ₹586.23 ₹908.12 ₹1,313 39
5Y EBITDA Exit ₹670.64 ₹1,055 ₹1,491 41
5Y P/E Exit ₹627.76 ₹980.47 ₹1,335 38
10Y Revenue Exit ₹469.98 ₹738.99 ₹1,068 36
10Y EBITDA Exit ₹542.51 ₹837.33 ₹1,194 37
10Y P/E Exit ₹515.92 ₹787.37 ₹1,084 35
Earnings-Based
Graham-Dodd ₹365.79 ₹745.83 ₹939.89 54
EPV ₹551.13 ₹633.13 ₹704.88 59
Multiples
P/E Multiple ₹847.23 ₹1,130 ₹1,412 63
P/S Multiple ₹685.86 ₹914.48 ₹1,143 58
P/B Multiple ₹685.86 ₹914.48 ₹1,143 55
EV/EBIT ₹1,068 ₹1,404 ₹1,741 53
EV/EBITDA ₹984.48 ₹1,293 ₹1,601 54
EV/Revenue ₹779.26 ₹1,088 ₹1,397 43
Asset-Based
NCAV (Graham) ₹134.45 ₹180.16 ₹268.90 50
Growth DCF
Growth DCF ₹349.59 ₹456.67 ₹605.43 72
Rev-Margin DCF ₹586.23 ₹908.90 ₹1,249 67
Economic Profit
Residual Income ₹350.90 ₹464.28 ₹1,816 76
ROIC Compounder ₹566.08 ₹670.93 ₹778.01 67
Growth Earnings
Growth-Adj P/E ₹617.05 ₹881.50 ₹1,146 68

Widest divergence: Multiples (₹1,088) versus Asset-Based (₹180.16). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 14.7
P/S ratio 1.56 TTM
Net margin 10.6% TTM
Return on equity 21.3% TTM
Return on assets 11.5% TTM
Operating margin 10.9% TTM
More key figures
Profitability
EPS (TTM) ₹108.50
Growth
Revenue (TTM) ₹50.6B TTM
Revenue growth (YoY) +5.2% 3y avg -4.9%
EPS growth (YoY) +11.5%
Balance sheet & cash flow
Free cash flow ₹1.3B FY2026

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 69 · Market factors (momentum, volatility) 41

Profitability 77
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

SKF India Limited provides bearings technology and solutions to industrial and automotive sectors in India and internationally.

Full company description

SKF India Limited provides bearings technology and solutions to industrial and automotive sectors in India and internationally. It offers rolling bearings including ball and roller bearing, bearing accessories, track rollers, and engineered products; mounted bearing and housing, such as ball and roller bearing units, and bearing housing; and super-precision bearing including angular contact ball, cylindrical roller, double direction angular contact thrust ball, and axial-radial cylindrical roller bearings, as well as angular contact thrust bearing for screw drives, and precision lock nuts and gauges. The company also provides slewing bearings; plain bearing, which includes spherical plain bearings and rod ends, and bushing, thrust washer, and strips; magnetic bearing systems; thin section bearing, such as reali-slim and ultra-slim thin section bearings, and customized thin section bearings; and industrial seals including power transmission, hydraulic, fluid handling, and machined seals. In addition, it offers automotive seals, such as bearing, body, driveline, engine, eDrive unit, suspension, and wheel seals, as well as two wheeler sealing solution; lubrication management comprising lubricants, manual lubricant tools, lubricators, automatic lubrication system, and lubrication system components; and maintenances products including hydraulic and mechanical tools, and heaters for mounting and dismounting, as well as alignment tools. Further, the company provides condition monitoring system, which includes surveillance and machine protection systems, software, sensor, product support and training, and inactive or obsolete products; power transmission solutions comprising belts, pulleys, chains, sprockets, bushing and hub, coupling, bolts and tightening systems, and v-belts; and test and measuring equipment, such as waviness and roundness analyzer, noise and vibration tester, and grease test rigs. The company was founded in 1923 and is headquartered in Pune, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

SKF India Limited reported revenue of ₹36.4B in FY2026 versus ₹36.5B in FY2022, a compound −0.1%/yr. Reported net income was ₹2.7B in FY2026, compounding −9.4%/yr from FY2022.

Growth Quality 62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹36.4B
Latest YoY
−24.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.5%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−2.2% (-2.2 + 0.0)
Revenue −0.1%/yr
FY22 ₹36.5B
FY23 ₹42.3B
FY24 ₹44.9B
FY25 ₹48.3B
FY26 ₹36.4B
Net income −9.4%/yr
FY22 ₹3.9B
FY23 ₹5.2B
FY24 ₹5.5B
FY25 ₹5.7B
FY26 ₹2.7B

SKFINDIA screens 57% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "SKF India Limited Fair Value". https://www.fairvalue-calculator.com/stock/SKFINDIA.BSE

Peer Group

Tools & Accessories · 124 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 72 · Top 25%
Fair Value upside −57% · Bottom 25%
Return on equity (TTM) 21% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 11% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 0.9% · Bottom 25%

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 14.7× · Cheaper than 75% of peers
P/B 5.93× · Pricier than 75% of peers
P/S (TTM) 1.56× · Pricier than median
P/FCF 0.6× · Cheaper than median
EV/EBITDA 10.0× · Cheaper than median

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$138.50 HK$78.56 -43%
Snap-on Incorporated SNA $393.93 $344.67 -13%
RBC Bearings Incorporated RBC $555.65 $179.94 -68%
Lincoln Electric Holdings LECO $286.97 $151.86 -47%
Stanley Black & Decker, Inc SWK $102.90 $52.80 -49%
AB SKF (publ) SKFB kr 262.50 kr 180.34 -31%
The Timken Company TKR $130.25 $64.85 -50%
Hangzhou Greatstar Industrial Co 002444 ¥30.51 ¥30.38 -0%
Hiwin Technologies Corporation 2049 381.00 TWD 73.32 TWD -81%
Kinik Company 1560 707.00 TWD 129.27 TWD -82%

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Frequently asked questions

Is SKF India Limited (SKFINDIA) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of ₹681.01 versus a price of ₹1,594, about −57% (overvalued).
What is the fair value of SKFINDIA?
Our model-based fair value for SKF India Limited is ₹681.01 (as of Aug 24, 2026), built from audited fundamentals. The current price: ₹1,594.
What is the quality score of SKFINDIA?
SKF India Limited has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SKF India Limited (SKFINDIA)?
SKF India Limited reported trailing-twelve-month revenue of about ₹50.6B (latest available figure, as of Aug 24, 2026).
What is the net profit margin of SKFINDIA?
The net profit margin of SKF India Limited is about 10.6%, meaning it keeps roughly 10.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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