SNL Bearings Limited

Industrials — Tools & Accessories · BSE

₹444.95−₹0.75 (−0.17%)

DalalBaazaar Score

72 / 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 obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

SNL Bearings Limited manufactures and markets antifriction bearing products in India and internationally. The company offers small and big end cages; full complement shells; cage-guided shells; and needle rollers.

IndustryTools & Accessories

SectorIndustrials

Employees117

Annual revenue₹53 Cr

How does it make money?

Turns over ₹53 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 117 employees supports ₹45.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹45.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Some evidence

ROCE of 18.7% 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 ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +16% while net margin moved +14% 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+16%

Margin effect+14%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.2% — barely ahead of inflation
• Profit CAGR of 9.9%

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

72/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.8x

3Y Median

15.3x

40 monthly readings · mean 15.3x · range 10.1x–20.5x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 15.3x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 84% below the peer median of 88.8x.

vs. its own history

Fair

15.3x median over 40 months · -9%

vs. sector peers

Cheap

88.8x median of 3 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.0x

PEG

1.40

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 46% over 3 years.
Cash generation is improving
Free cash flow is up 60% over 3 years.
Very low debt
Debt/Equity of 0.09x 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

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 45% against revenue up 16% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% 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 46% 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 84% 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 ₹12 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?

Sales are being booked faster than collected
Receivables are up 45% against revenue up 16%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 21%✓ 23.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.2% CAGR
Latest reported year was 23.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹12 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

8 good · 3 neutral · 0 weak

Market Cap

₹161 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.8x

Cheap

Cheap against the generic band

P/B Ratio

2.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹32.13

Profitable

Profitable on a per-share basis

ROE

14.3%

Moderate

Moderate capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.09x

Low

Conservative leverage

Revenue Growth (YoY)

23.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.37%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹12 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.5x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

22.4%

Good

Healthy core-business profitability

Net Margin

19.5%

Good

Strong bottom-line conversion

Current Ratio

10.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

451.6 / 420.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹46 Cr	₹48 Cr	₹53 Cr	+5.2%
EBITDA	₹11 Cr	₹11 Cr	₹11 Cr	₹12 Cr	+3.7%
EBITDA Margin	24.1%	22.7%	23.5%	23.1%	—
PAT (Net Profit)	₹8 Cr	₹8 Cr	₹11 Cr	₹11 Cr	+9.9%
EPS	₹22.66	₹21.66	₹30.08	₹30.05	+9.9%
ROE	15.1%	13.1%	16.0%	14.3%	—
ROCE	20.0%	17.5%	20.4%	18.7%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-18.6%
Free Cash Flow	₹8 Cr	₹7 Cr	₹4 Cr	₹12 Cr	+17.0%

🟢 Revenue has grown at 5.2% a year over 3 years.

🟢 EBITDA has grown at 3.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.1% to 23.1% over 3 years (-1.0 pts).

🟢 PAT (Net Profit) has grown at 9.9% a year over 3 years.

🟢 EPS has grown at 9.9% a year over 3 years.

🟡 ROE has held roughly flat at 14.3% over 3 years.

🔴 ROCE has fallen from 20.0% to 18.7% over 3 years (-1.2 pts).

🟢 Total Debt has shrunk at 18.6% a year over 3 years.

🟢 Free Cash Flow has grown at 17.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹84 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.1%

Corporate Actions

Dividend Rate

₹15

Ex-Dividend Date

08 May 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

SNL Bearings Share Price near 52-week high, fundamentals

Univest, 06 Oct

SNL Bearings Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

SNL Bearings Reports Q3FY26 Results and Announces ₹8 Crore Capacity Expansion

scanx.trade, 10 FebCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

SNL Bearings rises after Q1 PAT jumps 28% YoY

Business Standard, 07 AugResults

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

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

Value Research, 31 Aug

Dividend alert! Last date to buy these 10 stocks before they go ex-record date. Do you own?

The Economic Times, 07 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑