SKF INDIA LTD Valuation

SKFINDIA · Capital Goods · Current price ₹1,530.5

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DocStoX fair value
₹1,037
low confidence
Current price
₹1,531
Upside
-32.2%
P/E ratio
28.4x
P/B ratio
5.8x
Verdict
Avoid
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Is SKF INDIA LTD undervalued?

DocStoX estimates the fair value of SKF INDIA LTD at ₹1,037 per share, versus the current market price of ₹1,531. That puts the stock about -32.2% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹355), Relative P/E (₹1,639), Graham floor (₹571), Analyst target (₹2,352). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹355 (bear) to ₹1,037 (base) to ₹2,352 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

SKF INDIA LTD trades at a P/E of 28.4x and a P/B of 5.8x, with a dividend yield of 2.5%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on SKF INDIA LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.