HSBC has downgraded the rating of SKF India and set a target price of Rs 740, driven largely by an earnings cut.

An appreciation of 11 per cent in the past three months leaves limited upside to the stock at this stage, particularly against weak demand environment.

"In our new estimates, the stock appears fully valued trading at 15.7x CY13e EPS," said HSBC in a report. The management noted that while there is little visibility on the demand recovery, it believes that quarterly sales have most likely bottomed.

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