NRB Bearings Ltd. (NRBBEARING) AI Stock Analysis

• Market Cap: ₹24.69B
• Dividend Yield: 2.39%
• Average Volume (3M): 12.22K
• Price to Earnings (P/E): 26.8
• 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): 4.19
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹284.00 ▲(5.77% Upside)

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

Low leverage / strong balance sheet

Sustained low leverage and solid ROE provide durable financial flexibility, enabling NRB to absorb industry cyclicality, fund working capital for OEM programs, and invest in capacity or technology without heavy refinancing risk. This supports long-term supplier stability and credit resilience.

Consistent revenue growth

Mid-single-digit to high-single-digit revenue growth indicates steady demand from automotive and industrial customers and the aftermarket. Persistent top-line expansion helps spread fixed costs, supports investment in value-added product development, and underpins long-term margin recovery and scale benefits.

OEM-focused, sticky business model

Deep OEM customer relationships and participation in vehicle/platform programs create recurring, contract-like revenue streams and high switching costs. Combined with aftermarket sales, this mix yields structural demand visibility, enabling multi-year planning, certification-driven barriers and sustainable content growth.

Negative Factors

Weak free cash flow conversion

Declining OCF and weak FCF conversion reduce internal funding for capex, R&D, and working capital, forcing reliance on external financing for growth. Over time this constrains strategic investments, dividend flexibility and the ability to weather OEM production slowdowns or invest in higher-value products.

Pronounced EPS decline

A sharp EPS drop signals meaningful earnings volatility or one-off pressures that impair profitability sustainability. Persistent EPS weakness limits capacity to build retained earnings, undermines reinvestment potential, and raises execution risk around margin normalization in a cyclical auto-parts industry.

Margin pressure and volatility

Eroding gross margins and fluctuating operating margins suggest exposure to input-cost swings, pricing limits with OEMs, or product-mix shifts. Persistent margin instability can reduce returns on capital, limit cash reinvestment, and weaken competitive positioning versus peers with steadier cost pass-through or higher-value content.

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. generates revenue primarily through the sale of its bearing products to various industries, including automotive, aerospace, and heavy machinery. The company's revenue model is built on direct sales to OEMs (Original Equipment Manufacturers) and aftermarket customers, ensuring a steady demand for its products. Key revenue streams include bulk orders from large manufacturers and customized bearing solutions for specific applications. Additionally, NRB Bearings has established strategic partnerships with major automotive companies and industrial equipment manufacturers, which further enhances its market presence and contributes to its earnings. The company also invests in research and development to create innovative products that meet evolving industry standards, thereby attracting new clients and retaining existing ones.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 268.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NRBBEARING, the sentiment is Neutral. The current price of 268.5 is above the 20-day moving average (MA) of 254.42, below the 50-day MA of 271.82, and below the 200-day MA of 269.78, indicating a neutral trend. The MACD of -7.44 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 84.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹24.69B	26.84	―	2.39%	9.63%	-64.21%
SCHAEFFLER	69 Neutral	₹566.69B	53.20	―	0.73%	14.14%	16.91%
AUTOAXLES	68 Neutral	₹28.22B	17.96	―	1.63%	-2.78%	2.55%
TIMKEN	66 Neutral	₹221.07B	48.61	―	1.18%	4.81%	15.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PITTIENG	60 Neutral	₹29.65B	23.00	―	0.18%	26.81%	1.06%
SKFINDIA	60 Neutral	₹83.32B	15.53	―	0.39%	6.65%	-4.29%

NRB Bearings Ltd. Corporate Events

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.

NRB Bearings Clarifies Trading Volume Surge Amid Strategic Expansion

NRB Bearings Ltd. has experienced a significant increase in trading volume of its securities, prompting an inquiry from the NSE Limited. In response, the company clarified that it is unaware of any specific information affecting the price or volume of its shares, attributing the rise to market-driven factors. The company reiterated its compliance with regulatory disclosure requirements and highlighted its recent joint venture with Unitec as part of its strategic initiatives.

NRB Bearings Releases Q2 FY26 Earnings Call Transcript

NRB Bearings Limited has released the transcript of its earnings call for the second quarter of the fiscal year 2026. The call, which was held with analysts and investors, discussed the company’s unaudited standalone and consolidated financial results. This disclosure is part of the company’s compliance with SEBI regulations, ensuring transparency and informed decision-making for stakeholders. The transcript is available on the company’s website, reflecting NRB Bearings’ commitment to maintaining open communication with its investors and market analysts.