Fundamentals

SKF INDIA LTD.

Ticker : 500472
BUY: Rs. 1985.00
Target: Rs. 2200.00



SKF India Ltd is a leading global supplier of rolling bearing and seals. The company provides products, solutions and services in the areas of rolling bearings, seals, mechatronics, services and lubrication systems. For Q4FY19, the revenues were at Rs 748.44 crore, up 6 per cent on a YoY basis from Rs 703.64 crore. The PBIDT expanded 4.58 per cent to Rs 110.99 crore in Q4FY19, while in the same quarter of the previous year, it was Rs 106.13. The PAT grew over 14 per cent to Rs 82.2 crore in Q4FY19 from Rs 71.56 crore posted in Q4FY18. The company owns the largest market share of approximately 28 per cent as a bearings supplier, and with significant auto exposure, the auto demand thus plays a huge role. On the positive side, a pick-up in the industrial performance with segments like renewables, steel, construction and railways are expected to show strong traction over time. Thus we recommend to BUY the scrip.