We value the stock at Rs 217(17xDec-20E EPS). Maintain Neutral. NRB reported an in-line quarter with beat in revenue growth (17% vs. est of 11%) while EBITDA margins declined to 17.3% (-210/100bps yoy / qoq), which was below our estimates of 17.9%. Revenues at Rs 2.4bn were fuelled by strong growth in the 2W segment and robust export sales. EBITDA rose 4% yoy to Rs 420mn as the contraction in margins - benefit of a richer product mix (higher revenue from Needle bearing) was partially offset by an increase in other expenses (higher freight expenses and forex losses~ Rs 50mn). PAT came at Rs. 268mn (+26% YoY) supported by a lower tax rate.