Buy NRB Bearings; target of Rs 215: ICICI Direct

ICICI Direct is bullish on NRB Bearings has recommended buy rating on the stock with a target price of Rs 215 in its research report dated November 05, 2018.

Broker Research

November 13, 2018 / 15:59 IST

26 Aug, 2025 12:21

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ICICI Direct's research report on NRB Bearings

NRB Bearings reported stellar Q2FY19 numbers. Revenues came in at Rs 251 crore up 20.6% YoY. We estimated revenues of Rs 240 crore (15.5% YoY growth) for the quarter. We believe strong topline growth was on account of robust performance across all segments i.e. domestic OEMs, after-markets and exports EBITDA increased 20.4% YoY to Rs 46.1 crore. The company reported strong EBITDA on account of sharp increase in gross margins, 300 bps YoY during the quarter. However, other expenses also increased 52.8% YoY, offsetting gains in gross margins. Thus, EBITDA margins came in at 18.4% (Q1FY18 margins at 18.4%) Other income witnessed a sharp jump of 164.2% YoY (Rs 9.5 crore in Q2FY19 vs. Rs 3.6 crore in Q2FY18). Accordingly, PAT increased strong 37.7% YoY to Rs 29.1 crore.

Outlook

Thus, we continue with our positive stance on the company and maintain the target price of Rs 215 per share (~18x FY20E EPS). We have a BUY recommendation on the company.

For all recommendations report, click here