NRB Bearings (NRBBEARING)
CyclicalFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹458.9 |
| Market Cap | ₹4,447.78 Cr |
| P/E Ratio | 30.11 |
| ROCE | 15.88% |
| ROE | 9.15% |
| Dividend Yield | 2.67% |
| Profit Growth | 14.8% |
| Debt/Equity | 0.16 |
| Sales Growth | 19.2% |
| Promoter Holding | 51.2% |
| 52-Week Range | ₹212.55 — ₹519 |
| Sector | Auto Components |
| Book Value | ₹99.32 |
Strengths
- Low leverage with Debt/Equity of 0.14
- Strong recent growth: sales +17.74%, profit +34.05%, PEG 0.68
- Piotroski F-score of 7/9 indicates sound financial health
- Promoter holding of 51.2% aligns interests with minority shareholders
- Dividend yield of 2.10% provides a modest income while waiting
Concerns
- ROE of 9.15% is mediocre for a stock trading at 3.13 times book value
- Cyclical risk: price is ~40% below its 52-week high of ₹483
- Latest quarterly net margin is only ~8.8% (₹29 Cr profit on ₹328 Cr sales), leaving limited cushion in a downturn
- FairStock Score of 50/100 suggests mixed signals and no clear margin of safety
AI Analysis
At first glance, NRB Bearings has the kind of numbers that catch my eye: a low debt/equity ratio of 0.14, promoter holding of 51.2%, and a Piotroski F-score of 7/9. Financial health looks decent. Sales have grown 17.74% and profits 34.05%. At a P/E of 17.68 and a PEG of 0.68, the price is not crazy if this growth continues. A 2.10% dividend yield gives me something while I wait. But Graham would ask for a stronger return on the capital employed. ROCE is 15.88%, respectable, but ROE is only 9.15%. I am being asked to pay 3.13 times book value for that return. That leaves little margin of safety. The 52-week range—₹483 to ₹212.55 to the current ₹290.67—reminds me this is a cyclical auto-component business. The latest quarter had ₹29 Cr profit on ₹328 Cr sales, roughly an 8.8% net margin. Not a fortress. The stock is 40% below its high, which could be an opportunity only if the recent growth is durable. I need to know whether the 34% profit growth is from the auto cycle, operating leverage, or a real moat. The balance sheet is conservative, promoters hold 51.2%, and the F-score is 7/9. This is not yet a wonderful business—ROE needs to improve—but it is an interesting cyclical grower. I would wait for a larger margin of safety before making it a core holding.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer