NRB Bearings Limited

Consumer Cyclical — Auto Parts · NSE

₹491.00−₹17.85 (−3.51%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

NRB Bearings Limited, together with its subsidiaries, manufactures, markets, and trades in bearing products in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,240

Annual revenue₹1,313 Cr

How does it make money?

Turns over ₹1,313 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 1,240 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

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?Some evidence

ROCE of 20.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 15.0% and earnings to grow about 19.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.0%

Est. earnings growth+19.9%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +27% while net margin moved +20% 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+27%

Margin effect+20%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.57 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

59/ 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

32.3x

3Y Median

32.2x

40 monthly readings · mean 27.1x · range 8.2x–54.1x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 32.2x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 29% below the peer median of 45.7x.

vs. its own history

Fair

32.2x median over 40 months · +0%

vs. sector peers

Cheap

45.7x median of 4 peers · -29%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.4x

PEG

2.16

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 53% over 3 years.
Cash generation is improving
Free cash flow is up 581% over 3 years.
High return on capital employed
ROCE of 20.3% is the mark of a business that converts capital into profit efficiently.
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 Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 53% 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 29% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹136 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?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 18%✓ 20.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.2% CAGR
Latest reported year was 19.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹136 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹4,759 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.3x

Fair

Fairly valued against the generic band

P/B Ratio

4.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.21

Profitable

Profitable on a per-share basis

ROE

14.8%

Moderate

Moderate capital efficiency

ROCE

20.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

19.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.62%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹136 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

24.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.3%

Average

Average margins

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

526.4 / 494.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,035 Cr	₹1,072 Cr	₹1,177 Cr	₹1,313 Cr	+8.2%
EBITDA	₹194 Cr	₹191 Cr	₹219 Cr	₹265 Cr	+11.0%
EBITDA Margin	18.7%	17.8%	18.6%	20.2%	—
PAT (Net Profit)	₹94 Cr	₹239 Cr	₹79 Cr	₹143 Cr	+15.0%
EPS	₹9.7	₹24.71	₹8.2	₹14.73	+14.9%
ROE	14.1%	27.8%	8.7%	14.8%	—
ROCE	19.2%	36.4%	13.0%	20.3%	—
Total Debt	₹329 Cr	₹178 Cr	₹187 Cr	₹154 Cr	-22.4%
Free Cash Flow	₹20 Cr	₹66 Cr	₹2 Cr	₹136 Cr	+89.5%

🟢 Revenue has grown at 8.2% a year over 3 years.

🟢 EBITDA has grown at 11.0% a year over 3 years.

🟢 EBITDA Margin has risen from 18.7% to 20.2% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 15.0% a year over 3 years.

🟢 EPS has grown at 14.9% a year over 3 years.

🟡 ROE has held roughly flat at 14.8% over 3 years.

🟢 ROCE has risen from 19.2% to 20.3% over 3 years (+1.1 pts).

🟢 Total Debt has shrunk at 22.4% a year over 3 years.

🟢 Free Cash Flow has grown at 89.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,356 Cr

Total Liabilities

₹373 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

₹241 Cr

Capex

-₹105 Cr

Shareholding (proxy)

Institutional Holding

25.7%

Insider Holding

45.3%

Corporate Actions

Dividend Rate

₹7.95

Ex-Dividend Date

13 May 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹574.33

+17.0% vs CMP

Target Range

₹516 – ₹610

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

2 mixed1 negative3 general

NRBBEARING Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

NRB Bearings (NRBBEARING) Share Price Falls 5.08% as Valuation and Peer Context Stay in Focus

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

NRB Bearings jumps 10% to 52-wk high, up 98% from Mar low; more steam left?

Business Standard, 08 Jun

NRB Bearings promoter pledge falls to 37.84% by April 2026

scanx.trade, 13 JunOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Promoter entity offloads 1.5% stake in NRB Bearings

Moneycontrol.com, 11 May

NRB Bearings Ltd. (NRBBEARING) Share Price Trades Within 2% of 52-Week High

Univest, 17 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑