Please refer to important disclosures at the end of this report
SKF India (SKF) is part of Sweden’s AB SKF Group, a leading global supplier o
bearings. SKF, Sweden, holds 53% stake in the company. In India, SKF India is
the largest player with market share of ~28% and ~45% in overall bearings
industry and ball bearings segment, respectively. The company has been gaining
market share across segments. Further, management highlighted that their share
of supply to consumers has also increased. SKF intends to incur capex of `50c
this year, of which `20-30cr will be on generation 3 bearings. For FY18,
management has guided for capex of `1000-1500cr. Increased capex will be on
account of capacity expansion in the existing plants developing some new and
some old products. Though no new orders received from Indian railway freight
sector, management is positive about the same considering the government’s
focus on modernizing the railways along with passenger coaches. SKF has
achieved a technological breakthrough in becoming the sole source for ne
generation light commercial & heavy Commercial vehicle segments. The
company has been maintaining a healthy dividend payout of 27.35% (Div. Yield:
1.01%). The company currently has a RoCE of 27% of TTM earnings. Hence Buy.
CMP `1,484
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 53.6
MF / Banks / Indian Fls 23.4
FII / NRIs / OCBs 12.6
Indian Public / Others 10.5
Abs. (%) 3m 1yr 3yr
Sensex 8.2 16.7 32.0
SKF India 16.6 25.9 98.8
Reuters Code SKFB.BO
BSE Sensex 28,929
Nifty 8,927
Face Value (
Auto Ancillary
Market Cap (
cr) 7,823
52 Week High / Low 1550/1156
Avg. Daily Volume 4,330
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
SKF India
Others |
uto Ancillar
March 10, 2017
SKF India|
uto Ancillar
March 10, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement SKF India
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15