SKF India's shares experienced a significant rally on May 16, 2025, surging nearly 9% following the announcement of its Q4 results and a dividend declaration. The surge reflects positive investor sentiment driven by the company's strong financial performance and shareholder-friendly approach.
The abrasives and bearings company posted its Q4 results on Thursday after market hours. The company's net profit for the quarter under review came in at ₹275.65 crore, up 20 per cent year-on-year (Y-o-Y), from ₹230 crore. The company's revenue stood at ₹1,213.4 crore as compared to ₹1,203.4 crore in the corresponding quarter of the previous year, marginally up 0.8 per cent Y-o-Y. The total expenses of the company stood at ₹950.8 crore as compared to ₹1,009.16 crore. While the total income for the quarter stood at ₹1,226 crore as compared to ₹1238.34 crore a year ago.
The company's board has recommended a final dividend of ₹14.5 per equity share for the financial year ended March 31, 2025. This decision reaffirms SKF India's commitment to delivering value to its shareholders.
During the trading session on May 16, 2025, SKF India's share price jumped 8.8 percent, reaching an intraday high of ₹4,685.9 per share on the BSE. At 9:33 AM, SKF India shares were up 7.7 per cent at ₹4,636.55 per share on the BSE. In comparison, the BSE Sensex was down 0.09 per cent at 82,458.32. The market capitalisation of the company stood at ₹22,922.16 crore.
The company demonstrated strong cost discipline, with total expenses reducing to ₹950.8 crore from ₹1,009.16 crore. As a result, earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 33 percent YoY to ₹284 crore, up from ₹213 crore. Sequentially, EBITDA more than doubled from ₹121 crore in Q3FY25. Gross margin expanded to 49 percent in Q4FY25, up from 41 percent in the same quarter last year and 33 percent in the previous quarter, reflecting SKF's focus on cost efficiency and premium product offerings.
Despite the recent surge, SKF India shares remain over 36 percent below their 52-week high of ₹7,349, touched in June 2024. However, the stock has rebounded 32 percent from its 52-week low of ₹3,544, recorded in February 2025. After five consecutive months of decline from October 2024 to February 2025, the stock staged a recovery—rising 4.3 percent in March, 1 percent in April, and over 18 percent so far in May. Nonetheless, it is still down 19 percent over the past year.
Analysts have given the SKFINDIA stock a buy rating. According to analysts, SKFINDIA price target is 4,501.22 INR with a max estimate of 5,719.00 INR and a min estimate of 3,565.00 INR.
