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Oct 14, 2024

Auto ancillary stock jumps 3% after company to list on Nasdaq Stockholm - Trade Brains

by Trade Brains | Sep 18, 2024 | 11:10 am | Analysis, News, Stock Updates | 0 comments The shares of the leading automotive service provider gained up to 3 percent after the company’s promoter

by Trade Brains | Sep 18, 2024 | 11:10 am | Analysis, News, Stock Updates | 0 comments

The shares of the leading automotive service provider gained up to 3 percent after the company’s promoter announced the separation of its automotive business globally.

With a market capitalization of Rs 26,933.80 crore, the shares of SKF India Ltd were trading at Rs 5,448.00 per share, increasing around 0.63 percent as compared to the previous closing price of Rs 5,421.05 apiece.

Today, the company shares have seen positive movement after SKF India Ltd’s promoter announced the separation of its automotive business globally with the objective of a separate listing on Nasdaq Stockholm through a Lex Asea distribution to its shareholders. The intention is to list the Automotive business on Nasdaq Stockholm during the first half of 2026.

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Moreover, the separation will enable Automotive to adapt more quickly to global market changes, make independent decisions, and invest strategically. This leaner business model will enhance its competitive edge and drive profitable growth while accelerating its profitability transformation.

“When we launched our new business strategy in February 2022, we articulated a desire to create a more autonomous Automotive business to provide strategic flexibility. I also said that we need to make bold decisions to unlock additional long-term profitable growth opportunities. Initiating a separation of the Automotive business is one of those decisions,” says Rickard Gustafson, President and CEO.

Examining the company’s financial condition, revenue ramped up by 5 percent from Rs 1,150 crore in Q1FY24 to Rs 1,206 crore in Q1FY25, during the same time frame net profit zoomed significantly by 3 percent from Rs 155 crore to Rs 159 crore.

SKF India’s capacity expansion involves equipping its Pune production plant with a new cutting-edge manufacturing line for large-size bearings, increasing capacity by 40%. This endeavor is consistent with SKF’s commitment to expanding its footprint in the Indian market and satisfying the rising demand for industrial bearings and related solutions.

SKF has a pan-India footprint that includes six production sites, twelve offices, a supply network of over 450 distributors, and over 1700 devoted employees.

SKF India Limited specializes in providing products, solutions, and services for rolling bearings, seals, mechatronics, and lubrication systems. The company operates via the Bearings segment. Its products include rolling bearings, mounted bearings and housings, super-precision bearings, and slewing bearings.

Written by:- Abhishek Singh

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