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500472: Leadership Transition And Demerger Will Drive Future Margin Upside

Manufacturing Localization In Pune And Ahmedabad Will Unlock Value

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500472
AnalystConsensusTarget
Not Invested
Published 13 Feb 2025

Update shared on 20 Dec 2025

Fair value Decreased 8.66%
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AnalystConsensusTarget's Fair Value
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-1.1%

Analysts have trimmed their price target on SKF India from ₹4,224.50 to ₹3,858.63, reflecting expectations of slightly better profit margins but a lower justified valuation multiple, despite a modest improvement in projected revenue declines.

What's in the News

  • A board meeting is scheduled on November 14, 2025 to review and approve unaudited standalone and consolidated financial results for Q2 and H1 FY2025, along with updated balance sheet and cash flow statements (company filing).
  • A special shareholders meeting via postal ballot is scheduled on November 15, 2025 to seek approval for material related party transactions with SKF India (Industrial) Limited, the resulting company from the proposed demerger (company filing).
  • A board meeting on September 30, 2025 formalized leadership changes, including accepting the resignation of Managing Director Mukund Vasudevan, who will continue as a non executive director, and appointing Shailesh Kumar Sharma as the new Managing Director for a five year term effective October 1, 2025 (company filing).
  • The same September 30, 2025 board meeting noted the resignation of CFO Ashish Saraf and approved the appointment of Aashi Arora as Interim CFO effective October 1, 2025, reflecting broader management restructuring linked to the demerger (company filing).

Valuation Changes

  • The fair value estimate has been reduced from ₹4,224.50 to ₹3,858.63, indicating a moderate downward revision in intrinsic value.
  • The discount rate has edged down slightly from 14.64 percent to 14.63 percent, implying a marginally lower perceived risk profile.
  • Projected revenue growth has been revised from a decline of 20.71 percent to a smaller decline of 20.33 percent, reflecting a modestly improved topline outlook.
  • The net profit margin has risen from 7.92 percent to 9.00 percent, signaling expectations of better profitability despite weaker growth.
  • The future P/E has fallen significantly from 156.0x to 123.6x, suggesting a lower justified valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.