Bimetal Bearings (505681)

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

Strengths

• Sales growth of 18.18% shows underlying demand for bearings remains healthy.
• P/B of 1.14 offers a tangible book value cushion close to the current price.
• Dividend yield of 2.32% provides some income while waiting for a recovery.
• Market cap of ₹250 crore with a book value of ₹572 implies limited downside if assets are genuinely worth book.

Concerns

• ROE of 4.53% and ROCE of 5.42% are far too low; the business is not earning its cost of capital.
• Profit growth down 40% and latest quarter net profit of ₹2 crore on ₹64 crore sales shows very thin margins.
• Piotroski F-Score of 4/9 indicates weak financial health and possible balance sheet stress.
• P/E of 21.36 is expensive given the sharp profit contraction; the market is pricing in a turnaround that is not yet visible.

AI Analysis

When I look at Bimetal Bearings, I see a small-cap auto component player trading at ₹652.70 with a market cap of ₹250 crore. The first thing that catches my eye is the balance sheet: book value of ₹571.89, so I'm paying just 1.14 times book. That sounds like a margin of safety, but Benjamin Graham taught me that a cheap price on a mediocre business is still a mediocre investment. The returns tell the story: ROE is only 4.53% and ROCE is 5.42%. These are far below what I'd expect from a business with any pricing power. Sales grew 18.18%, which is encouraging, but profit growth fell 40% in the same breath. The latest quarter shows net profit of just ₹2 crore on sales of ₹64 crore – that's roughly a 3% margin. This tells me the company is generating revenue, but costs or cyclical pressures are crushing profitability. The Piotroski F-Score of 4 out of 9 is a red flag too – it suggests the financial health is deteriorating, not improving. The dividend yield of 2.32% offers some comfort, and the 52-week range of ₹491 to ₹668 suggests the stock is near its top, not a bargain hunter's dream. With a P/E of 21.36 and profits shrinking, the market is still pricing in a recovery that hasn't arrived. This looks like a cyclical auto component business going through a rough patch. I won't ignore the low P/B, but I need to see returns on capital improve meaningfully before I get excited. For now, I'd rather wait on the sidelines and watch whether margins recover and whether the company can earn something closer to its book value cost of capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer