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Check Before You Invest : NRB Industrial Bearings Ltd

BSE: 535458 NSE: NIBL ISIN: INE047O01014
  |   Sector:  Automobiles   |   Industry:  Bearings

Snapshot

Q.1 Which industry/sub-sector does NRB Industrial Bearings Ltd belong to?
NRB Industrial Bearings Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.
Q.2 Is NRB Industrial Bearings Ltd a good quality company?
NRB Industrial Bearings Ltd is a quality company, based on a 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 NRB Industrial Bearings Ltd undervalued or overvalued?
NRB Industrial Bearings Ltd appears Undervalued, as its key valuation ratios are lower than 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 4.57 -
Price to Book -1.73 -2.62
Price to Sales 1.04 0.89
EV to EBITDA -29.08 18.04
Q.4 Is NRB Industrial Bearings Ltd a good buy now?
NRB Industrial 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 NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd revenue growth is -12.8% for FY-2025, which is below its 5-year CAGR of 8.86%, indicating slower growth.

Q.2 Gross Profit margin of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Gross profit margin which is the profit after deduction of direct costs, is -29.8% for FY-2025, which is below its 5-year median of -4.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -14.74% for FY-2025, which is below its 5-year median of 5.08% indicating decreasing margins.

Q.4 Net Profit Margin of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Net Profit Margin is 28.7% for FY-2025, is above its 5-year median of -14.15%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -29.8 -4.8
Operating Profit Margin (%) -14.74 5.08
Net Profit Margin (%) 28.7 -14.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Return on Asset is 15.1%, which is above its 5-year historical median of -7.49%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Return on capital employed is 33.54% for FY-2025, which is above its 5-year historical median of -1.75%. 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 NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -286.78%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Cash conversion cycle is 74 days, below its 5-year historical median of 87 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.53 0.53
ROE (%) - -286.78
ROCE (%) 33.54 -1.75
Cash Conversion Cycle 74 days 87 days

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

Q.9 Debt to Equity ratio of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Debt-to-Equity ratio is -6.18, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of NRB Industrial Bearings Ltd?
NRB Industrial Bearings Ltd Debt to cash flow from operations is -6.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of NRB Industrial Bearings Ltd?

Q.1 Promoter shareholding and pledge status of NRB Industrial Bearings Ltd?
Promoters hold 74.79% of the NRB Industrial Bearings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of NRB Industrial Bearings Ltd vs industry peers?
NRB Industrial Bearings Ltd revenue CAGR is 8.86%, 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 (%) -12.8 7.7
Gross Profit Growth (%) 0 18
Operating Profit Growth (%) 0 15.4
Net Profit Growth (%) 0 16.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.53 0.89
ROE (%) - 14.63
ROCE (%) 33.54 13.99
Cash Conversion Cycle (days) 74.08 103

Valuation & price assessment

Q.1 Stock return of NRB Industrial Bearings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-3% 9.8% 17.9% 27.1%
Q.2 Valuation ratios of NRB Industrial Bearings Ltd vs historical?
The current P/E ratio of 4.57 is higher than its historical median of , 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 4.57 - 22.77
Price to Book -1.73 -2.62 2.84
Price to Sales 1.04 0.89 2.46
EV to EBITDA -29.08 18.04 13.87

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