SKF India (Industrial) Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

SKF India (Industrial) Ltd trades at ₹2,628, in a downtrend and 33 weeks into that stage. That is +5.2% against its own 200-day average. It sits at 67% of a 52-week range of ₹2,064 to ₹2,906. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 10 straight weeks.

Today the stock is in a downtrend — week 33 of stage 4. At ₹2,628 it trades +5.2% versus its 200-day average and sits at 67% of its 52-week range (₹2,064–₹2,906).

Against the market, two honest reads. Cumulative: over the last 7 months the stock moved −2% while the NIFTY 500 moved +0% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 10 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

SKF India (Industrial) Ltd trades at 36.4× P/E, against too little history to rank. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 36.4× is against too little history to rank. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

SKF India (Industrial) Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

47.0/100 — rank 6 of 7 in Bearings · 38% evidence confidence · provisional, ranked below fully-evidenced peers

SKF India (Industrial) Ltd scores 47.0 out of 100 against the 7 companies it is compared with in Bearings, ranking 6. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 12.4 + 15.1 + 9.5 + 10 = 47. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

SKF India (Industrial) Ltd reported ₹946 Cr of revenue in the Mar 26 quarter, +31.2% year on year. Over 1 years it has compounded at 377.1% a year. The last full year, FY26, came in at ₹3,440 Cr. The last four reported quarters add to ₹2,620 Cr.

SKF India (Industrial) Ltd reported ₹946 Cr of revenue in the Mar 26 quarter, +31.2% year on year. Over 1 years it has compounded at 377.1% a year. The last full year, FY26, came in at ₹3,440 Cr. The last four reported quarters add to ₹2,620 Cr.

FY26 revenue came in at ₹3,440 Cr (+377.1% on the year), capping 1 years at 377.1% compound. The latest quarter (Mar 26) printed ₹946 Cr, +31.2% year on year.

Pace check: the last four quarters averaged +31.2% growth against the decade's 377.1% — the current year is running slower than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: 9.0% this quarter (−13.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

SKF India (Industrial) Ltd's operating margin is 9.0% in the Mar 26 quarter, −13.0 percentage points against the same quarter a year ago.

SKF India (Industrial) Ltd's operating margin is 9.0% in the Mar 26 quarter, −13.0 percentage points against the same quarter a year ago.

The latest quarter's operating margin is 9.0%, −13.0 pp against the same quarter a year ago. Across 2 fiscal years the operating margin has ranged 11.0%–22.0%.

Why: the numbers show the operating margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

→ Margins slipped — did that reach the bottom line? Next: profit −1.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

SKF India (Industrial) Ltd earned ₹119 Cr of net profit in the Mar 26 quarter, −1.7% year on year. Full-year FY26 profit was ₹218 Cr. The 1-year compound rate is 80.2%. That is 12.6% of the quarter's revenue. The same quarter a year earlier earned ₹121 Cr.

SKF India (Industrial) Ltd earned ₹119 Cr of net profit in the Mar 26 quarter, −1.7% year on year. Full-year FY26 profit was ₹218 Cr. The 1-year compound rate is 80.2%. That is 12.6% of the quarter's revenue. The same quarter a year earlier earned ₹121 Cr.

Mar 26 profit was ₹119 Cr, −1.7% year on year. On the full year, FY26 printed ₹218 Cr (+80.2%), and the 1-year compound rate is 80.2%.

→ Profit rose — but did the cash follow? Next: 43% of the last 2 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 2 fiscal years 43% of SKF India (Industrial) Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹164 Cr of operating cash against ₹218 Cr of profit. After ₹185 Cr of capital spending, ₹−21.0 Cr was left as free cash.

FY26: operating cash of ₹164 Cr against reported profit of ₹218 Cr, leaving free cash of ₹−21.0 Cr after ₹185 Cr of capital spending. Across the last 2 fiscal years the conversion rate is 43% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 43%: the cash cycle tightened 273 days between FY25 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 6.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹185 Cr of building over 1 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

SKF India (Industrial) Ltd's cash conversion cycle runs 56 days in FY26, down from 329 days in FY25. Capital spending ran ₹185 Cr over the last 1 years. At FY26 sales of ₹3,440 Cr each day of that cycle holds about ₹9.4 Cr, so roughly ₹528 Cr sits inside the business at any moment.

FY26: debtors at 88 days, inventory at 84 days — roughly 2.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 56 days, tighter than FY25's 329.

The full loop: cash goes out to suppliers and production on day 0; stock waits 84 days to sell; customers pay about 88 days after that; and suppliers themselves are paid at 116 days — netting out to the 56-day cycle.

In money terms: at FY26 sales of ₹3,440 Cr, each day of the cycle holds about ₹9.4 Cr — so the 56-day loop keeps roughly ₹528 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹185 Cr over the last 1 fiscal years against ₹31.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹134 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 30% and the ROIC − WACC spread is +29.5 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

SKF India (Industrial) Ltd earns a ROCE of 30% in FY26. Return on invested capital clears the cost of that capital by +29.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 6.3% net margin on 1.29× asset turns.

FY26 ROCE is 30%.

Why the return is what it is — the wiring (FY26): 6.3% net margin × 1.29× asset turns × 1.81× balance-sheet leverage ≈ 14.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 41.5% − 12.0% = a +29.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.00.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

SKF India (Industrial) Ltd carries ₹5.0 Cr of borrowings against ₹1,476 Cr of equity in FY26, a debt-to-equity of 0.00. Over 1 years borrowings went from ₹2.0 Cr to ₹5.0 Cr. Capital spending ran ₹185 Cr across the last 1 of those years.

FY26: borrowings of ₹5.0 Cr against equity of ₹1,476 Cr — a debt-to-equity of 0.00. Over 1 years borrowings went from ₹2.0 Cr to ₹5.0 Cr while capital spending ran ₹185 Cr in just the last 1 — part of the build-out is riding on borrowed money.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of SKF India (Industrial) Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

SKF India (Industrial) Ltd: the Z-score reads 9.04. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 9.04 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 9.04.

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