Check Before You Invest : Galaxy Bearings Ltd

Q: Which industry/sub-sector does Galaxy Bearings Ltd belong to?

Galaxy Bearings Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.

Q: Is Galaxy Bearings Ltd a good quality company?

Galaxy Bearings Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Galaxy Bearings Ltd undervalued or overvalued?

Galaxy Bearings Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 48.47, Historic Median: 22.77. Price to Book, Current: 1.46, Historic Median: 3.50. Price to Sales, Current: 2.38, Historic Median: 2.79. EV to EBITDA, Current: 20.71, Historic Median: 14.84

Q: Is Galaxy Bearings Ltd a good buy now?

Galaxy Bearings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Galaxy Bearings Ltd?

Galaxy Bearings Ltd revenue growth is -18% for FY-2025, which is below its 5-year CAGR of 16.68%, indicating slower growth.

Q: Gross Profit margin of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2025, which is in line with its 5-year median of 19.6%, indicating stable margins.

Q: Operating Profit Margin of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.52% for FY-2025, which is in line with its 5-year median of 17.78% indicating stable margins.

Q: Net Profit Margin of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Net Profit Margin is 13.16% for FY-2025, is in line with its 5-year median of 13.16%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 19.6, Historic Median: 19.6. Operating Profit Margin (%), Current: 18.52, Historic Median: 17.78. Net Profit Margin (%), Current: 13.16, Historic Median: 13.16

Q: Return on Asset of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Return on Asset is 9.63%, which is below its 5-year historical median of 16.12%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Return on capital employed is 16.28% for FY-2025, which is below its 5-year historical median of 27.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Snapshot

Q.1 Which industry/sub-sector does Galaxy Bearings Ltd belong to?

Galaxy Bearings Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.

Q.2 Is Galaxy Bearings Ltd a good quality company?

Galaxy Bearings Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Galaxy Bearings Ltd undervalued or overvalued?

Galaxy Bearings Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	48.47	22.77
Price to Book	1.46	3.50
Price to Sales	2.38	2.79
EV to EBITDA	20.71	14.84

Q.4 Is Galaxy Bearings Ltd a good buy now?

Galaxy Bearings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Galaxy Bearings Ltd?

Galaxy Bearings Ltd revenue growth is -18% for FY-2025, which is below its 5-year CAGR of 16.68%, indicating slower growth.

Q.2 Gross Profit margin of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2025, which is in line with its 5-year median of 19.6%, indicating stable margins.

Q.3 Operating Profit Margin of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.52% for FY-2025, which is in line with its 5-year median of 17.78% indicating stable margins.

Q.4 Net Profit Margin of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Net Profit Margin is 13.16% for FY-2025, is in line with its 5-year median of 13.16%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	19.6	19.6
Operating Profit Margin (%)	18.52	17.78
Net Profit Margin (%)	13.16	13.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Return on Asset is 9.63%, which is below its 5-year historical median of 16.12%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Return on capital employed is 16.28% for FY-2025, which is below its 5-year historical median of 27.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Return on equity is 13.71% for FY-2025, which is below its 5-year historical median of 22.48%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Cash conversion cycle is 170 days, above its 5-year historical median of 100 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.73	1.09
ROE (%)	13.71	22.48
ROCE (%)	16.28	27.91
Cash Conversion Cycle	170 days	100 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Debt-to-Equity ratio is 0.27, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Galaxy Bearings Ltd?

Galaxy Bearings Ltd Debt to cash flow from operations is -15.24, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Galaxy Bearings Ltd?

Q.1 Promoter shareholding and pledge status of Galaxy Bearings Ltd?

Promoters hold 46.83% of the Galaxy Bearings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Galaxy Bearings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Galaxy Bearings Ltd vs industry peers?

Galaxy Bearings Ltd revenue CAGR is 16.68%, compared to the industry median CAGR of 7.70%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-18	7.7
Gross Profit Growth (%)	-25.9	18
Operating Profit Growth (%)	-9.5	15.4
Net Profit Growth (%)	-26.3	16.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.73	0.89
ROE (%)	13.71	14.63
ROCE (%)	16.28	13.99
Cash Conversion Cycle (days)	169.77	103

Valuation & price assessment

Q.1 Stock return of Galaxy Bearings Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 57.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	57.8%	17.2%	-23.7%	-49.2%

Q.2 Valuation ratios of Galaxy Bearings Ltd vs historical?

The current P/E ratio of 48.47 is higher than its historical median of 22.77, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	48.47	22.77	22.77
Price to Book	1.46	3.50	2.84
Price to Sales	2.38	2.79	2.46
EV to EBITDA	20.71	14.84	13.87

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