SNL Bearings (505827)

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

Key Financials

Strengths

• Strong capital efficiency: ROE 17.83% and ROCE 21.03%.
• Reasonable valuation: trailing P/E of 11.92 and P/B of 2.08.
• Modest dividend yield of 2.19% provides some shareholder return.
• Sales growth of 14.26% shows demand is still expanding.
• Small-cap niche with potential for focused growth in auto components.

Concerns

• Profit growth is -8.93% despite revenue growth, indicating margin pressure.
• Piotroski F-Score of 4/9 points to weakening financial fundamentals.
• Debt/equity and promoter holding are not available, leaving transparency gaps.
• Cyclicality of auto components could cause further earnings volatility.

AI Analysis

If I look at SNL Bearings through a Benjamin Graham lens, the first thing I notice is a modestly priced, small-cap auto component business. At ₹358.30, the market cap is only ₹130 crore, with a P/E of 11.92 and P/B of 2.08. Book value of ₹172.67 gives some cushion, but not a deep-value bargain. The business earns a solid 17.83% ROE and 21.03% ROCE, which tells me the underlying capital allocation is decent. However, I cannot ignore the contradiction: sales grew 14.26% but profit fell 8.93%. That is a classic sign of margin compression, common in cyclical auto-component businesses. The latest quarter shows sales of ₹14 crore and net profit of ₹3 crore, so the earnings power is real but not expanding. The Piotroski F-Score of 4 out of 9 is a red flag; it suggests deteriorating financial health. On the positive side, the dividend yield of 2.19% gives a little compensation while I wait, and the PEG ratio of 0.84 looks tempting, but with profit falling, I don't trust the growth denominator. The 52-week range of ₹299.70 to ₹423.50 tells me shareholders have already seen volatility. I wouldn't call this a stalwart yet; it looks more like a cyclical currently in a soft patch. Graham would want more margin of safety. I need evidence that margins are stabilizing, profit growth turns positive, and the balance sheet remains comfortable—debt/equity is not disclosed here, so I have to be cautious. For an Indian retail investor, SNL Bearings is worth watching, not chasing.

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