Galaxy Bearings Limited

Industrials — Metal Fabrication · BSE

₹955.00−₹43.20 (−4.33%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Galaxy Bearings Limited engages in the manufacture and trade of ball and taper roller bearing, and steel products in India.

IndustryMetal Fabrication

SectorIndustrials

Employees95

Annual revenue₹66 Cr

How does it make money?

Turns over ₹66 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 95 employees supports ₹69.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹69.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. 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 6.0% 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 ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -43% while net margin moved -64% 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-43%

Margin effect-64%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 16.9% a year
✗ Profit has declined at 40.8% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

25/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

81.9x

3Y Median

20.5x

40 monthly readings · mean 27.4x · range 10.0x–91.9x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 300% above its 3y median of 20.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 574% above the peer median of 12.2x.

vs. its own history

Expensive

20.5x median over 40 months · +300%

vs. sector peers

Expensive

12.2x median of 4 peers · +574%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

41.3x

PEG

5.35

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 44% over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.4% to 3.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.2% to 6.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 347% over 3 years, from ₹4 Cr to ₹18 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.2 points, from 20.0% to 11.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 30% against revenue up -43% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 15.8x to 3.2x.
🟡Profit is decliningFinancial
Net profit is down 79% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹15 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 20.0% to 11.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 30% against revenue up -43%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 300% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 21.4% to 3.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.0%
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

4 good · 3 neutral · 4 weak

Market Cap

₹304 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

81.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.76x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.66

Profitable

Profitable on a per-share basis

ROE

3.0%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

-5.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

15.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.0%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

3.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

956.4 / 918.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹115 Cr	₹124 Cr	₹103 Cr	₹66 Cr	-16.9%
EBITDA	₹23 Cr	₹22 Cr	₹20 Cr	₹8 Cr	-30.3%
EBITDA Margin	20.0%	17.4%	19.7%	11.8%	—
PAT (Net Profit)	₹16 Cr	₹19 Cr	₹14 Cr	₹3 Cr	-40.8%
EPS	₹50.14	₹59.26	₹43.12	₹10.41	-40.8%
ROE	21.4%	20.2%	12.8%	3.0%	—
ROCE	29.2%	27.1%	18.1%	6.0%	—
Total Debt	₹4 Cr	₹16 Cr	₹29 Cr	₹18 Cr	+64.7%
Free Cash Flow	₹11 Cr	-₹10 Cr	-₹8 Cr	₹15 Cr	+12.8%

🔴 Revenue has shrunk at 16.9% a year over 3 years.

🔴 EBITDA has shrunk at 30.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.0% to 11.8% over 3 years (-8.2 pts).

🔴 PAT (Net Profit) has shrunk at 40.8% a year over 3 years.

🔴 EPS has shrunk at 40.8% a year over 3 years.

🔴 ROE has fallen from 21.4% to 3.0% over 3 years (-18.4 pts).

🔴 ROCE has fallen from 29.2% to 6.0% over 3 years (-23.2 pts).

🔴 Total Debt has grown at 64.7% a year over 3 years.

🟢 Free Cash Flow has grown at 12.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹140 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹20 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.2%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 mixed4 general

Galaxy Bearings Upper Circuit Today: Price, Data and Peers

Univest, 06 Oct

Galaxy Bearings Approves ₹2.75 Crore Land Sale; Shares Rise 2.2%

HDFC Sky, 15 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Galaxy Bearings Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Galaxy Bearings: પુણેની જમીન વેચીને કંપનીએ કર્યા **₹2.75 કરોડ** ઊભા, જાણો શું છે પ્લાન

Whalesbook, 15 Sept

Galaxy Bearings Share Price Hits 20% Upper Circuit Today

Univest, 02 Jul

Galaxy Bearings closes trading window from Oct 1 ahead of Q2FY27 results

scanx.trade, 25 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-5.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingRisk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; ROCE stays above 8% · see Key things to watch ↑