Bimetal Bearings Limited

Consumer Cyclical — Auto Parts · NSE

₹634.00−₹2.40 (−0.38%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Bimetal Bearings Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bimetal Bearings Limited manufactures and sells engine bearings, bushings, thrust washers, alloy powder, and bimetallic strips in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees327

Annual revenue₹285 Cr

How does it make money?

Turns over ₹285 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 327 employees supports ₹87.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹87.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +30% while net margin moved -19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+30%

Margin effect-19%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.1% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.2x

Sector Median

45.7x

median of 4 sector peers

🟢Against its sector it trades 54% below the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

45.7x median of 4 peers · -54%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.4x

PEG

12.34

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 61% over 3 years.
Cash generation is improving
Free cash flow is up 37% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 9.7% to 8.2% over 3 years.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 1.60x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 61% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 54% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 9.7% to 8.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.60x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 6%✓ 8.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.1% CAGR
Latest reported year was 11.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹243 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.06x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹29.86

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

6.5%

Weak

Low return on total capital employed

Debt/Equity

1.60x

High

High leverage

Revenue Growth (YoY)

11.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-7.0%

Falling

Profits are shrinking

Dividend Yield

2.13%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

2.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

643.9 / 639.1

Bullish alignment (short > long)

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹220 Cr	₹225 Cr	₹232 Cr	₹285 Cr	+9.1%
EBITDA	₹21 Cr	₹18 Cr	₹19 Cr	₹23 Cr	+3.2%
EBITDA Margin	9.7%	8.1%	8.4%	8.2%	—
PAT (Net Profit)	₹11 Cr	₹10 Cr	₹11 Cr	₹12 Cr	+1.7%
EPS	₹29.11	₹26.62	₹29.42	₹30.64	+1.7%
ROE	5.4%	4.6%	5.0%	5.1%	—
ROCE	7.0%	5.8%	5.3%	6.5%	—
Total Debt	₹9 Cr	₹9 Cr	₹9 Cr	₹4 Cr	-26.9%
Free Cash Flow	₹2 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+11.0%

🟢 Revenue has grown at 9.1% a year over 3 years.

🟢 EBITDA has grown at 3.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.7% to 8.2% over 3 years (-1.5 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.7% a year).

🟡 EPS has been broadly flat over 3 years (1.7% a year).

🟡 ROE has held roughly flat at 5.1% over 3 years.

🟡 ROCE has held roughly flat at 6.5% over 3 years.

🟢 Total Debt has shrunk at 26.9% a year over 3 years.

🟢 Free Cash Flow has grown at 11.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹301 Cr

Total Liabilities

₹72 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.6%

Corporate Actions

Dividend Rate

₹13.5

Ex-Dividend Date

14 Jul 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive5 general

Bimetal Bearings (BIMETAL.NS) Ticks Up 0.70% to ₹636.4, Holding Mid-Range Between ₹604.58 and ₹668.22 - Put Support

www.siam.in, 16 Oct

Bimetal Bearings Ltd is Rated Hold

MarketsMojo, 15 Oct

Bimetal Bearings Ltd

Equitypandit, 26 Mar

Bimetal Bearings profit rises 9.9% to ₹114.22 crore in FY26

scanx.trade, 21 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bimetal Bearings Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Bimetal Bearings Stock Prediction 2026: Expert Analysis, Forecast Scenarios and Full Stock Review

Univest, 19 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑