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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

NRB Bearings Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:42 pm

Market Cap 2,697 Cr.
Current Price 279
High / Low402/243
Stock P/E25.4
Book Value 96.2
Dividend Yield0.90 %
ROCE14.6 %
ROE12.7 %
Face Value 2.00
PEG Ratio0.51

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for NRB Bearings Ltd

Competitors of NRB Bearings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Galaxy Bearings Ltd 350 Cr. 1,1021,800/1,07618.2 3180.00 %27.7 %22.3 % 10.0
Deccan Bearings Ltd 19.2 Cr. 87.887.8/35.9 0.780.00 %68.8 %68.8 % 10.0
Benara Bearings & Pistons Ltd 25.2 Cr. 14.226.8/13.3 10.80.00 %2.39 %14.1 % 10.0
Austin Engineering Company Ltd 72.6 Cr. 209268/16717.1 1820.00 %8.91 %6.17 % 10.0
Timken India Ltd 24,498 Cr. 3,2504,818/2,49062.0 3440.08 %23.4 %17.6 % 10.0
Industry Average17,376.83 Cr1,457.2235.69194.440.71%24.91%22.40%7.22

All Competitor Stocks of NRB Bearings Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales245257201257231255236258251312272279258
Expenses202210175209201213193227217248227233223
Operating Profit43472747294243303464454636
OPM %18%18%13%18%13%17%18%12%14%21%17%16%14%
Other Income468-17-33314-5-15192
Interest5444543457666
Depreciation999910910101110111111
Profit before tax334022332225332033412834211
Tax %30%12%24%27%21%30%27%33%29%15%31%27%21%
Net Profit233517241717241323351925166
EPS in Rs2.333.571.682.431.701.752.471.302.363.571.912.4817.09

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5595906066696737268559657767629431,0571,122
Expenses444490502545562608686779689658796880931
Operating Profit11410110412411111716918686105147177191
OPM %20%17%17%19%17%16%20%19%11%14%16%17%17%
Other Income493438122216151012191
Interest15191919181815162223182126
Depreciation29323631323231353331374143
Profit before tax7358527864751351574766102128313
Tax %31%18%35%31%32%30%31%30%29%16%26%25%
Net Profit5148345443539311033567696245
EPS in Rs5.154.873.405.494.335.339.3611.173.315.587.569.7025.05
Dividend Payout %39%35%32%27%32%26%28%23%24%9%26%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-5.88%-29.17%58.82%-20.37%23.26%75.47%18.28%-70.00%69.70%35.71%26.32%
Change in YoY Net Profit Growth (%)0.00%-23.28%87.99%-79.19%43.63%52.22%-57.19%-88.28%139.70%-33.98%-9.40%

NRB Bearings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:3%
3 Years:13%
TTM:2%
Compounded Profit Growth
10 Years:12%
5 Years:0%
3 Years:22%
TTM:-3%
Stock Price CAGR
10 Years:8%
5 Years:23%
3 Years:19%
1 Year:8%
Return on Equity
10 Years:16%
5 Years:12%
3 Years:14%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:57 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital19191919191919191919191919
Reserves179200235260285359451438498569648841912
Borrowings272316327311275216280359253302329178150
Other Liabilities127142153142144195197167186183215201235
Total Liabilities5976777357327237899489839561,0741,2121,2391,316
Fixed Assets219233258259247260322364359358351337383
CWIP19384591515161011284322
Investments000061413121234364483
Other Assets359405473468461500598591575671796815829
Total Assets5976777357327237899489839561,0741,2121,2391,316

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3473719285133711021581661115
Cash from Investing Activity +-124-67-24-10-25-46-89-65-32-50-44100
Cash from Financing Activity +38-4-25-79-69-96369-12922-13-222
Net Cash Flow-522224-10-91746-3-124-7

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow114.00-171.00-212.00-203.00-200.00-158.00-47.00-94.00-273.00-148.00-155.00-152.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days94111109123971008194100837757
Inventory Days254226238203231175278271258305330364
Days Payable11811412912613312312310014311311584
Cash Conversion Cycle230223218200195152237266215275292338
Working Capital Days12613013512312791123134140155164168
ROCE %16%14%17%14%16%25%23%9%11%15%16%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters49.82%49.82%49.85%49.86%49.86%49.90%50.11%50.24%50.63%50.67%50.69%50.69%
FIIs22.58%23.00%21.90%21.50%21.52%21.32%21.29%21.85%14.31%14.31%14.33%13.69%
DIIs11.90%11.81%11.60%11.61%11.87%11.76%11.49%11.18%19.48%19.69%18.59%17.58%
Public15.70%15.37%16.65%17.04%16.75%17.02%17.11%16.73%15.58%15.32%16.39%18.05%
No. of Shareholders45,27444,69648,18146,73744,69746,27447,96645,66247,76653,05752,83764,259

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan8,748,9820.95241.952,102,6792024-11-20316.09%
Mirae Asset ELSS Tax Saver Fund6,687,5990.98184.952,102,6792024-11-20218.05%
Mirae Asset Midcap Fund2,102,6790.4558.152,102,6792024-11-200%
Mirae Asset Multicap Fund869,2651.2324.042,102,6792024-11-20-58.66%
Franklin Build India Fund500,0000.813.832,102,6792024-11-20-76.22%
HDFC Retirement Savings Fund - Hybrid Equity - Regular Plan175,0000.44.842,102,6792024-11-20-91.68%
Motilal Oswal Nifty Microcap 250 Index Fund53,6400.261.482,102,6792024-11-20-97.45%
Groww Nifty Total Market Index Fund1340.0102,102,6792024-11-20-99.99%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)24.719.707.565.583.31
Diluted EPS (Rs.)24.719.707.565.583.31
Cash EPS (Rs.)29.3914.1311.648.926.86
Book Value[Excl.RevalReserv]/Share (Rs.)90.4070.4262.0954.5848.13
Book Value[Incl.RevalReserv]/Share (Rs.)90.4070.4262.0954.5848.13
Revenue From Operations / Share (Rs.)112.90109.1097.4478.6880.08
PBDIT / Share (Rs.)20.0220.4916.4412.2810.51
PBIT / Share (Rs.)15.5516.2812.609.117.08
PBT / Share (Rs.)32.6013.1710.486.864.83
Net Profit / Share (Rs.)24.929.927.805.753.42
NP After MI And SOA / Share (Rs.)24.719.707.565.583.31
PBDIT Margin (%)17.7318.7816.8715.6013.12
PBIT Margin (%)13.7714.9212.9311.578.83
PBT Margin (%)28.8712.0710.758.716.03
Net Profit Margin (%)22.079.098.007.304.27
NP After MI And SOA Margin (%)21.888.887.757.094.13
Return on Networth / Equity (%)27.8414.0712.4410.447.01
Return on Capital Employeed (%)16.2320.5617.7513.8612.31
Return On Assets (%)19.327.766.815.653.26
Long Term Debt / Equity (X)0.030.090.100.170.16
Total Debt / Equity (X)0.200.480.490.420.69
Asset Turnover Ratio (%)0.890.920.930.770.79
Current Ratio (X)2.541.711.641.661.30
Quick Ratio (X)1.190.870.891.030.76
Inventory Turnover Ratio (X)1.131.441.821.501.37
Dividend Payout Ratio (NP) (%)20.6420.626.610.0078.57
Dividend Payout Ratio (CP) (%)17.4814.374.390.0038.55
Earning Retention Ratio (%)79.3679.3893.390.0021.43
Cash Earning Retention Ratio (%)82.5285.6395.610.0061.45
Interest Coverage Ratio (X)8.7110.119.575.454.68
Interest Coverage Ratio (Post Tax) (X)3.436.435.783.552.52
Enterprise Value (Cr.)2686.171551.591354.391206.51822.37
EV / Net Operating Revenue (X)2.461.471.431.581.06
EV / EBITDA (X)13.847.818.5010.148.07
MarketCap / Net Operating Revenue (X)2.371.231.181.380.73
Retention Ratios (%)79.3579.3793.380.0021.42
Price / BV (X)3.021.941.892.031.25
Price / Net Operating Revenue (X)2.371.231.181.380.73
EarningsYield0.090.070.060.050.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NRB Bearings Ltd as of November 21, 2024 is: 313.11

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, NRB Bearings Ltd is Undervalued by 12.23% compared to the current share price 279.00

Intrinsic Value of NRB Bearings Ltd as of November 21, 2024 is: 469.35

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, NRB Bearings Ltd is Undervalued by 68.23% compared to the current share price 279.00

Last 5 Year EPS CAGR: 49.90%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.92%, which is a positive sign.
  2. The company has higher reserves (451.92 cr) compared to borrowings (274.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (625.08 cr) and profit (103.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 134.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 236.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NRB Bearings Ltd:
    1. Net Profit Margin: 22.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.23% (Industry Average ROCE: 24.91%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.84% (Industry Average ROE: 22.4%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.43
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.19
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 25.4 (Industry average Stock P/E: 35.69)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.2
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

NRB Bearings Ltd. is a Public Limited Listed company incorporated on 30/06/1965 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29130MH1965PLC013251 and registration number is 013251. Currently company belongs to the Industry of Bearings. Company’s Total Operating Revenue is Rs. 913.84 Cr. and Equity Capital is Rs. 19.38 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
BearingsDhannur, Mumbai Maharashtra 400001investorcare@nrb.co.in
http://www.nrbbearings.com
Management
NamePosition Held
Mr. Ashank D DesaiChairman
Ms. Harshbeena S ZaveriVice Chairman & Mng.Director
Mr. Rustom DesaiDirector
Mr. Satish C RanganiDirector
Mr. Jayavardhan Dhar DiwanDirector
Ms. Bapsy DasturDirector

FAQ

What is the latest intrinsic value of NRB Bearings Ltd?

The latest intrinsic value of NRB Bearings Ltd as on 21 November 2024 is ₹313.11, which is 12.23% higher than the current market price of ₹279.00.

What is the Market Cap of NRB Bearings Ltd?

The Market Cap of NRB Bearings Ltd is 2,697 Cr..

What is the current Stock Price of NRB Bearings Ltd as on 21 November 2024?

The current stock price of NRB Bearings Ltd as on 21 November 2024 is ₹279.

What is the High / Low of NRB Bearings Ltd stocks in FY 2024?

In FY 2024, the High / Low of NRB Bearings Ltd stocks is 402/243.

What is the Stock P/E of NRB Bearings Ltd?

The Stock P/E of NRB Bearings Ltd is 25.4.

What is the Book Value of NRB Bearings Ltd?

The Book Value of NRB Bearings Ltd is 96.2.

What is the Dividend Yield of NRB Bearings Ltd?

The Dividend Yield of NRB Bearings Ltd is 0.90 %.

What is the ROCE of NRB Bearings Ltd?

The ROCE of NRB Bearings Ltd is 14.6 %.

What is the ROE of NRB Bearings Ltd?

The ROE of NRB Bearings Ltd is 12.7 %.

What is the Face Value of NRB Bearings Ltd?

The Face Value of NRB Bearings Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NRB Bearings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE