Thanks for comment - you’re right both sales and profit growth has been mediocre in the past few years. (Am travelling so will update with detailed post later with more facts )
My reading suggests that it is due to lacklustre growth in Autos and Industries. Utilisation seems to be 70% levels per 2019 conference call transcripts. Am not able to find recent transcripts.
In terms of competition, SKF has lion’s market share but looks competitors such as Timken, NRB, etc have posted decent growth figures. I need to dig deep on this.
However, scuttlebutt as well Auto monthly sales in last quarter suggest revival in growth for 2W & 4W. (3W sales are still down). And GST and IIP growth shows turnaround.
Another important factor is that they are getting into services and consultation assignments with Remanufacturing - moving from Capex to Opex which could be game changer given their expertise in bearings and machine mechanics.
On valuations, agree don’t have margin of safety at current levels but don’t expect it to go below 20% of CMP. My holding is less than 2% so can average down during corrections.
Below has some good data and analysis ~