NSEI:NRBBEARING

Stock Analysis Report

Executive Summary

NRB Bearings Limited manufactures, sells, and exports ball and roller bearings to original equipment manufacturers in India and internationally.


Snowflake Analysis

Average dividend payer with adequate balance sheet.

Share Price & News

How has NRB Bearings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRBBEARING has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

NRBBEARING

2.8%

IN Machinery

1.9%

IN Market


1 Year Return

-49.1%

NRBBEARING

-8.3%

IN Machinery

8.1%

IN Market

Return vs Industry: NRBBEARING underperformed the Indian Machinery industry which returned -11.1% over the past year.

Return vs Market: NRBBEARING underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

NRBBEARINGIndustryMarket
7 Day1.0%2.8%1.9%
30 Day12.6%6.8%3.1%
90 Day1.6%5.9%6.5%
1 Year-47.8%-49.1%-6.9%-8.3%10.1%8.1%
3 Year6.7%1.0%8.8%4.7%35.1%28.0%
5 Year-14.8%-21.4%23.2%16.4%36.6%24.2%

Price Volatility Vs. Market

How volatile is NRB Bearings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NRB Bearings undervalued compared to its fair value and its price relative to the market?

18.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NRBBEARING (₹111.15) is trading above our estimate of fair value (₹29.7)

Significantly Below Fair Value: NRBBEARING is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NRBBEARING is poor value based on its PE Ratio (19.7x) compared to the Machinery industry average (14.8x).

PE vs Market: NRBBEARING is poor value based on its PE Ratio (19.7x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NRBBEARING's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NRBBEARING is overvalued based on its PB Ratio (2.4x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is NRB Bearings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NRBBEARING's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if NRBBEARING's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NRBBEARING's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: NRBBEARING's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NRBBEARING's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NRB Bearings performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRBBEARING has high quality earnings.

Growing Profit Margin: NRBBEARING's current net profit margins (6.3%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: NRBBEARING's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: NRBBEARING's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NRBBEARING had negative earnings growth (-45.1%) over the past year, making it difficult to compare to the Machinery industry average (2.3%).


Return on Equity

High ROE: NRBBEARING's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NRB Bearings's financial position?


Financial Position Analysis

Short Term Liabilities: NRBBEARING's short term assets (₹5.2B) exceed its short term liabilities (₹3.7B).

Long Term Liabilities: NRBBEARING's short term assets (₹5.2B) exceed its long term liabilities (₹936.8M).


Debt to Equity History and Analysis

Debt Level: NRBBEARING's debt to equity ratio (58.6%) is considered high.

Reducing Debt: NRBBEARING's debt to equity ratio has reduced from 134.4% to 58.6% over the past 5 years.

Debt Coverage: NRBBEARING's debt is not well covered by operating cash flow (19.6%).

Interest Coverage: NRBBEARING's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: NRBBEARING has a high level of physical assets or inventory.

Debt Coverage by Assets: NRBBEARING's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is NRB Bearings's current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%0.6%markettop25%2.2%industryaverage1.5%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: NRBBEARING's dividend (2.34%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: NRBBEARING's dividend (2.34%) is in the top 25% of dividend payers in the Indian market (2.31%)


Stability and Growth of Payments

Stable Dividend: NRBBEARING's dividend payments have been volatile in the past 10 years.

Growing Dividend: NRBBEARING's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.1%), NRBBEARING's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of NRB Bearings's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Harshbeena Zaveri (59yo)

9.3yrs

Tenure

₹55,082,314

Compensation

Mrs. Harshbeena Sahney Zaveri, B.Com, CA, CPA, A.B(USA), has been Vice Chairman of NRB Bearings Ltd. since May 24, 2016 and as its Managing Director since October 1, 2010 and also serves as the President.  ...


CEO Compensation Analysis

Compensation vs Market: Harshbeena's total compensation ($USD777.30K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Harshbeena's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.9yrs

Average Tenure

63yo

Average Age

Experienced Management: NRBBEARING's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

Experienced Board: NRBBEARING's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹605,10925 Sep 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares6,000
Max Price₹101.18
Buy₹1,974,19827 Aug 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares22,240
Max Price₹88.85
Buy₹56,72723 Aug 19
Aziz Zaveri
EntityIndividual
Shares633
Max Price₹89.62
Buy₹44,485,92022 Aug 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares497,823
Max Price₹89.47
Buy₹511,82520 Aug 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares5,749
Max Price₹89.82
Buy₹32,16903 Jul 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares200
Max Price₹160.84
Buy₹575,67002 Jul 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares3,576
Max Price₹163.01
Buy₹1,240,17726 Jun 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares7,911
Max Price₹157.73
Buy₹3,647,28921 Jun 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares23,144
Max Price₹157.92
Buy₹322,70621 Jun 19
Aziz Zaveri
EntityIndividual
Shares2,000
Max Price₹161.35
Buy₹2,908,30720 Jun 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares21,527
Max Price₹161.72
Buy₹17,585,34614 Jun 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares105,005
Max Price₹168.12
Buy₹11,457,67310 Jun 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares67,136
Max Price₹171.28
Buy₹2,276,67907 Jun 19
Aziz Zaveri
EntityIndividual
Shares13,379
Max Price₹170.90
Buy₹13,862,47106 Jun 19
Harshbeena Zaveri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares80,930
Max Price₹171.92

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Harshbeena Zaveri (59yo)

    Vice Chairman

    • Tenure: 9.3yrs
    • Compensation: ₹55.08m
  • Satish Rangani (71yo)

    Senior VP & Whole-Time Director

    • Tenure: 7.3yrs
    • Compensation: ₹13.67m
  • Arvinder Kohli (63yo)

    Vice President of Technology

    • Compensation: ₹1.12m
  • Herman Kamping (63yo)

    Vice President of International Business Development

    • Tenure: 12.6yrs
    • Compensation: ₹10.32m
  • Tanushree Bagrodia

    CFO & VP of IT

    • Tenure: 6.4yrs
    • Compensation: ₹21.03m
  • Sanjeev Parida

    Senior Vice President of HR

    • Prakash Banait

      Head of Application Engineering

      • Shruti Joshi (40yo)

        Compliance Officer

        • Tenure: 1.4yrs
        • Compensation: ₹4.48m
      • Shibu Warrier

        Chief Human Resource Officer

        • Tenure: 1yrs
      • Kishore Ochani

        Chief Operating Officer of International Business

        • Tenure: 0.08yrs

      Board Members

      • Ashank Desai (68yo)

        Non-Executive Independent Director

        • Tenure: 3.8yrs
        • Compensation: ₹760.00k
      • Harshbeena Zaveri (59yo)

        Vice Chairman

        • Tenure: 9.3yrs
        • Compensation: ₹55.08m
      • Devesh Sahney (51yo)

        Non-Executive Non Independent Director

        • Tenure: 18.7yrs
        • Compensation: ₹420.00k
      • Satish Rangani (71yo)

        Senior VP & Whole-Time Director

        • Tenure: 7.3yrs
        • Compensation: ₹13.67m
      • Tashwinder Singh (49yo)

        Independent Chairman of the Board

        • Tenure: 0.4yrs
        • Compensation: ₹1.08m
      • Rajesh Vishakha (55yo)

        Non Executive Independent Director

        • Tenure: 1.2yrs
        • Compensation: ₹550.00k
      • Rustom Desai (48yo)

        Non Executive Independent Director

        • Tenure: 3yrs
        • Compensation: ₹530.00k

      Company Information

      NRB Bearings Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: NRB Bearings Limited
      • Ticker: NRBBEARING
      • Exchange: NSEI
      • Founded: 1965
      • Industry: Industrial Machinery
      • Sector: Capital Goods
      • Market Cap: ₹10.749b
      • Shares outstanding: 96.92m
      • Website: https://www.nrbbearings.com

      Location

      • NRB Bearings Limited
      • Dhannur, 15
      • Sir P.M Road
      • Mumbai
      • Maharashtra
      • 400001
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      530367BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2000
      NRBBEARINGNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2000

      Biography

      NRB Bearings Limited manufactures, sells, and exports ball and roller bearings to original equipment manufacturers in India and internationally. It offers drawn cup needle and cylindrical roller bearings, polyamide and steel needle bearing cages, full-complement needle bearings, formed strip cages for heavy gear boxes, special ball bearings, tapered and spherical roller bearings, planetary shafts and other special pins, crank pins, thrust bearings, and rocker arm bearings. It primarily serves automotive and mobility industries. The company was formerly known as Needle Roller Bearing Company Limited and changed its name to NRB Bearings Limited in 1990. NRB Bearings Limited was founded in 1965 and is based in Mumbai, India. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 12:54
      End of Day Share Price2020/01/20 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.