SKF India - Bearing fruits of MNC Parentage & Industrialization

Stock Opportunities
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I had created a thread on SKF Industrial but couldn’t post it as it didn’t meet forum standards and didn’t have bandwidth to clean it up.

At 950 cr last quarter revenue (considering last Q as results are messed up due to de-merger . Mcap is still about 14k crores.

Timken India with 1070 crore revenue in last quarter, mcap is at 27k crore.

SKF industrial has huge capex of 6-800 crores for a new factory in Pune in next 2-3 years.

SKF industrial will close the valuation gap with Timken. I will not be surprised to see a 50% upmove from current levels.

Caution: It has seen sharp upmove of 30% already.

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Created a separate thread for SKF India Industrial

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SKF India posted excellent results posting 27% sales growth (588 cr) and profits at 62 cr. Normalized for whole year we are looking at a profit of 250 crore and PE of 30 which is in line with NRB bearings but cheaper than Schaeffer and Timken.

Anyone tracking this.

Looks like analysts have dropped coverage due to demerger which in turn led to messy numbers for last year. But mutual funds seems to continue backing the stock as holding has gone up from 23.3% to 24.3% over last one year.