FINANCE & STOCK ADVICE: My View On SKF India

About The Company

When 40% of its revenue comes from the auto sector, which is going through a major slowdown, naturally, the effect was bound to be felt by SKF India. The slowdown in the automotive market has resulted in many of SKF’s major clients in India cutting down orders 'to the tune of over 10%. Its industrial segment accounts for 60% of its total revenues.

In November 08’, due to the slowdown in the automotive market in India, it decided to put on hold its Rs.150 crore manufacturing facility at Haridwar. The company had earlier planned the 10 acres plant to go on stream by the end of the year. It expects to commission the plant in the first quarter of 2010 although it is yet to take a final decision. Also in Q3, it had laid off 100 temporary workers.

SKF India currently has three manufacturing facilities, two in Bangalore and one in Pune, with a third one being constructed in Ahmedabad, at an investment of Rs 300 crore and to be commissioned in June 2009.

The company has bagged an order of over 300 million euro to supply bearings to wind energy major Suzlon from its Ahmedabad plant when it goes on stream in the second quarter of the next year. This agreement with Suzlon is for five-and-a-half years.

About The Results

The company has posted results for the year ended 31^st Dec 2008, the financial performance of the company has taken a hit. Marginal rise in topline, followed by hike in operating costs and interest outgo, led to a fall in the bottomline. Infact its performance for fourth quarter was the worst during the year, where QoQ, net sales dipped 15% and net profit was down sharply by 56%.

For the year 2008, it’s net sales was up 4% at Rs.1630.42 crore. EBITDA was down 22% at Rs.207.94 crore. And it ended the year with a net profit of Rs.127.66 crore, down 20%. The Board recommended a dividend of Rs 4.50 per share on the equity shares of Rs 10 each.

About The Stock

Partial investment are could be made but keeping a shrewd eye on it's trend.

Disclaimer : I do not have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On SKF India