Buy SKF India, target price Rs 3300: ICICI Direct

ICICI Direct has buy call on SKF India with a target price of Rs 3300. The current market price of SKF India Ltd. is Rs 2897.05. Time period given by analyst is one year when SKF India price can reach defined target.

SKF India Ltd., incorporated in the year 1961, is a Mid Cap company (having a market cap of Rs 14341.95 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 699.94 Crore, down -17.87 % from last quarter Total Income of Rs 852.19 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company reported net profit after tax of Rs 79.12 Crore in latest quarter.


Investment Rationale
SKF has been making strides towards innovation and R&D and has made significant inroads in REP. Going ahead, a recovery in auto, upcoming e-market & commencement of DFC should augur well for the company

Promoter/FII Holdings
Promoters held 52.6 per cent stake in the company as of June 30, 2021, while FIIs held 5.1 per cent, DIIs 27.9 per cent and public and others 14.4 per cent.