CRISIL Research has assigned a fundamental grade of ’4/5’ to NRB Bearings. The grade indicates that the company’s fundamentals are ‘superior’ relative to other listed equity securities in India. CRISIL Research has also assigned a valuation grade of ‘5/5’, indicating that market price has ‘strong upside’ from the current levels.
The assigned fundamental grade takes into account NRB Bearings’ strong engineering capabilities which make it a preferred supplier of customized bearings to leading OEMs. The grade is constrained by NRB Bearings’ dependence on the domestic auto market which is susceptible to cyclicality.
NRB Bearings is the fourth largest organized bearings player (by sales) in India, manufacturing customized bearings for the mobility segment (automobiles, off highway vehicles, etc). It has eight manufacturing plants with a total capacity to manufacture 144 million pieces as of FY13.
