NRB Bearings Ltd. (NRBBEARING) AI Stock Analysis

• Market Cap: ₹25.50B
• Dividend Yield: 2.39%
• Average Volume (3M): 12.22K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.28
• Revenue Growth: 9.63%
• EPS Growth: -64.21%
• Country: IN
• Employees: 1,290
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 3.20
• Shares Outstanding: 96,922,600
• 10 Day Avg. Volume: 6,963
• 30 Day Avg. Volume: 12,221
• PEG Ratio: -0.38
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 1.68
• P/FCF Ratio: -368.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹353.00
• Price Target Upside: 31.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 12.7
• Revenue Forecast (FY): ₹11.78B

• Rating: 73 Outperform
• Price Target: ₹285.00 ▲(6.15% Upside)
• Action: Upgraded Date: 12/02/25
• Date: Action: Upgraded 12/02/25

NRB Bearings Ltd. scores well due to strong financial performance and positive technical indicators. The company's solid revenue growth and effective balance sheet management are significant strengths. However, the high P/E ratio suggests a stretched valuation, which could limit future gains. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Conservative leverage / strong balance sheet

Low debt-to-equity provides durable financial flexibility: it reduces refinancing risk in downturns, supports continued supply to OEM programs, and allows the firm to fund targeted capex or absorb cyclical shocks without compromising strategic investments or supplier/customer relationships over the next several months.

Consistent revenue growth

Sustained revenue growth reflects expanding OEM approvals and aftermarket traction, which underpin recurring contractual revenues. This trend supports scale benefits, steadier production planning, and a firmer base for margin recovery and incremental investment in product/ capacity over a multi-month horizon.

Healthy profitability and ROE

Strong ROE and solid operating margins signal efficient capital deployment and operational control. These durable profit metrics enable reinvestment, support dividend capability or targeted capex, and indicate the company can sustain competitive costs and absorb moderate input-cost swings over the medium term.

Negative Factors

Weak free cash flow conversion

Declining free cash flow conversion limits the firm’s ability to self-fund working capital and capex tied to OEM programs, increasing reliance on external funding if needs rise. Over months this can constrain strategic flexibility, slow capacity additions, or tighten returns to shareholders.

Margin volatility / recent gross margin decline

Fluctuating gross and operating margins suggest sensitivity to input costs or product mix shifts. Persistent margin swings reduce earnings predictability, can erode reinvestment capacity, and force pricing or cost actions that take months to implement and normalize across OEM contracts.

Cyclical end-market exposure

Heavy reliance on automotive and industrial production ties revenue and utilization to macro cycles. A slowdown in vehicle builds or industrial activity can materially reduce orders and utilization, making near-to-medium-term revenue and margin outcomes sensitive to broader economic trends.

NRB Bearings Ltd. Business Overview & Revenue Model

Company Description

NRB Bearings Limited engages in the manufacture and sale of the ball and roller bearings to original equipment manufacturers in India and internationally. The company offers a range of friction solutions comprises drawn cup needle bearings, cylindrical roller bearings, polyamide and steel needle bearing cages, full-complement needle bearings, formed strip cages for heavy gearboxes, special ball bearings, tapered and spherical roller bearings, and planetary shafts. It also offers crankpins, thrust bearings, rocker arm bearings, other special pins. It serves the automotive industry, as well as mobility applications. NRB Bearings Limited was incorporated in 1965 and is based in Mumbai, India.

How the Company Makes Money

NRB Bearings Ltd. makes money by manufacturing and selling bearings and bearing-related components to customers in the automotive and industrial supply chains. Its core revenue stream is product sales to OEMs (tiered automotive supply and direct OEM supply where applicable), where it typically earns revenue based on contracted supply programs and ongoing production orders for specific vehicle/platform applications. A second revenue stream comes from sales into the replacement/aftermarket, where bearings are sold for maintenance and repair demand through distribution channels and customers who service equipment and vehicles. The company’s earnings are influenced by factors such as vehicle production volumes and industrial activity (which drive OEM demand), product mix and value-added content per unit (which affect realizations and margins), and its ability to maintain long-term supply relationships and approvals with OEMs and major tier suppliers. Specific details on named partnerships, customer concentration, or segment-wise revenue breakdown are null.

NRB Bearings Ltd. Financial Statement Overview

Summary

NRB Bearings Ltd. demonstrates solid financial health with consistent revenue growth and effective balance sheet management. Profitability metrics are generally strong, although there are areas in profit margin and cash flow that require attention. The company shows resilience in handling debt and equity, maintaining low leverage, and ensuring operational cash generation. However, improving cash flow conversion and stabilizing profit margins could enhance overall financial performance.

Income Statement

NRB Bearings Ltd. has shown consistent revenue growth over the years, with a notable increase from 2024 to 2025. The net profit margin is stable but has seen a decline in gross profit margin in the latest annual report. The EBIT and EBITDA margins indicate a healthy level of operational profitability, although they have experienced fluctuations. Overall, the company maintains a strong position in revenue generation and profitability but needs to address volatility in profit margins.

Balance Sheet

The company has a low debt-to-equity ratio, suggesting a conservative approach to leverage. Return on Equity (ROE) has been strong, reflecting effective use of equity. The equity ratio indicates a stable financial structure with a significant proportion of assets financed by equity. The balance sheet shows financial stability and low risk regarding leverage, backed by solid equity levels.

Cash Flow

Cash flow from operations has declined recently, impacting free cash flow growth negatively. The free cash flow to net income ratio indicates that a significant portion of earnings is not converting into free cash flow. The operating cash flow to net income ratio is healthy, suggesting that core operations are generating cash effectively. The cash flow statement reflects some challenges in capital expenditures and free cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.19B	11.99B	10.94B	10.51B	9.34B	7.54B
Gross Profit	7.00B	5.07B	6.59B	6.49B	4.94B	4.06B
EBITDA	1.85B	1.72B	3.81B	1.88B	1.57B	1.20B
Net Income	866.00M	794.40M	2.39B	939.80M	732.70M	540.60M
Balance Sheet
Total Assets	0.00	13.00B	12.39B	12.12B	10.74B	9.56B
Cash, Cash Equivalents and Short-Term Investments	904.70M	904.70M	793.00M	989.10M	777.00M	829.00M
Total Debt	0.00	1.87B	1.78B	3.29B	3.02B	2.54B
Total Liabilities	-9.36B	3.63B	3.63B	5.29B	4.73B	4.28B
Stockholders Equity	9.36B	9.18B	8.60B	6.68B	5.89B	5.18B
Cash Flow
Free Cash Flow	0.00	-54.50M	658.10M	207.30M	-146.60M	1.22B
Operating Cash Flow	0.00	764.50M	1.15B	615.20M	155.80M	1.58B
Investing Cash Flow	0.00	-612.10M	1.02B	-440.20M	-501.90M	-309.40M
Financing Cash Flow	0.00	-199.20M	-2.22B	-140.20M	215.70M	-1.29B

NRB Bearings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 268.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NRBBEARING, the sentiment is Negative. The current price of 268.5 is below the 20-day moving average (MA) of 274.14, above the 50-day MA of 264.45, and below the 200-day MA of 272.53, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 33.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NRBBEARING.

NRB Bearings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRBBEARING	73 Outperform	₹25.50B	22.79	―	2.39%	9.63%	-64.21%
SCHAEFFLER	72 Outperform	₹650.92B	52.70	―	0.73%	14.14%	16.91%
PITTIENG	70 Outperform	₹31.75B	27.08	―	0.18%	26.81%	1.06%
AUTOAXLES	68 Neutral	₹29.14B	18.33	―	1.63%	-2.78%	2.55%
TIMKEN	66 Neutral	₹250.02B	103.51	―	1.18%	4.81%	15.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹79.99B	36.90	―	0.39%	6.65%	-4.29%

NRB Bearings Ltd. Corporate Events

NRB Bearings Posts Q3 FY26 Earnings Call Transcript for Investor Access

NRB Bearings Ltd. has released the transcript of its Q3 FY 2025-26 earnings conference call with analysts and investors, covering its unaudited standalone and consolidated financial performance. The disclosure has been made under SEBI’s Listing Regulations, and the full transcript has been posted on the company’s website for public access.

The move underscores the company’s focus on transparency and regulatory compliance, giving stakeholders deeper insight into management’s commentary on quarterly results. By formally sharing the call transcript with exchanges and investors, NRB Bearings aims to enhance information availability and support informed decision-making in the market.

NRB Bearings’ Subsidiary to Acquire Aerospace Precision Components Business for ₹27.5 Crore

Mahant Tool Room Private Limited, a wholly owned subsidiary of NRB Bearings Ltd., has entered into a Business Transfer Agreement to acquire the business of M/s. Mahant Tool Room, a Bangalore-based sole proprietorship engaged in manufacturing precision machined components for engine and fuel systems in the aerospace industry. The transaction, valued at INR 27.5 crore in cash and subject to certain conditions precedent, signals NRB Bearings’ move to deepen its capabilities and footprint in the high-value aerospace precision components space, potentially strengthening its technological base, diversifying revenue streams, and enhancing its positioning in advanced engineering markets.

NRB Bearings Makes Strategic Aerospace Foray with Mahant Tool Room Acquisition

NRB Bearings Limited has announced a strategic expansion into the aerospace segment via the acquisition of the business of Bengaluru-based Mahant Tool Room by its wholly owned subsidiary, Mahant Tool Room Private Limited, for an upfront cash consideration of ₹27.5 crore. The deal brings NRB an existing order book of over ₹25 crore in mission-critical engine and fuel system components, recognized by industry awards, and includes the onboarding of industry expert Mr. Mallappa to drive growth in the aerospace vertical. By adding this high-growth, high-entry-barrier sector to its portfolio, NRB aims to accelerate its diversification beyond automotive, strengthen its advanced manufacturing and technological capabilities, and support its aspirational target of achieving turnover of over ₹2,500 crore within five years, while emphasizing disciplined capital allocation and long-term value creation for shareholders.