The 4 reports from 2 analysts offering long term price targets
for NRB Bearings Ltd. have an average target of 133.50. The consensus estimate
represents an upside of 24.36%
from the last price of 107.35.
While domestic OEMs were reeling under tepid demand, NRB's exports segment did well, thereby sustaining utilisation levels at factories. Export performance was aided by higher wallet share from existing customers (ZF & Getrag) as well as addition of two new customers. The management expects exports to be upwards of 20% in the FY21E topline. On the domestic front, demand for tractors remained buoyant led by a good monsoon and relatively lesser impact of the pandemic in rural areas. Further, 2-W, PV have seen an uptick whereas CV is gaining some momentum. On the other hand,...
Companies like Larsen & Toubro and KEC with exposure to the Middle East and North Africa (MENA) region are expected to get impacted by the recent more than 60% fall in crude oil prices to US$22/barrel. This is expected to impact overall orders/awarding from the MENA region. Companies like Elgi Equipments, AIA Engineering, Thermax, Engineers India and Kalpataru Power with exposure to international geographies like Europe, Middle East, China for sales or essential raw material may get impacted. However, lockdowns in India, UK, Europe and other geographies due to Covid-19 are...
Headwinds in domestic OEMs to result in sluggish FY20E Domestic OEM segment witnessed double digit de-growth in the midst of a slowdown in the auto sector. Domestic OEM (two-wheelers, CV comprise highest share in OEM segment) contributes to ~69% of topline. Going ahead, we expect some short-term pain in this segment, which can be followed by some recovery starting H1FY21. Margins look to have bottomed out with the company benefitting from the lag effect of low steel prices in the first half of the year. This should cushion EBITDA as well as bottomline...
Headwinds in domestic OEMs to lead to sluggish FY20E Domestic OEM segment witnessed double digit de-growth in the midst of a slowdown in the auto sector. Domestic OEM (two-wheelers and CV comprise highest share in the OEM segment) contributes to around ~69% of NRB's topline. Going ahead, we expect some short-term pain in this segment, which can be followed by some recovery starting H1FY21. On the raw material front, the company is expected to benefit from the current decline in steel prices starting from Q4FY20E onwards, which should...
For FY19, NRB witnessed growth of 12.8%YoY driven by healthy growth in domestic OEM and exports. Domestic OEMs and exports grew ~15% YoY and 20% YoY, respectively. After markets segment declined YoY as NRB shifted most of its capacities for fulfilling demand of its OEM customers. EBITDA margins also came in strong at 19.2% for the year due to efficient inventory management and pass through of input prices at regular intervals. Going ahead, the domestic OEM segment is likely to witness moderation in growth with corresponding slowdown in auto volume growth and...
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.
ICICI Securities Ltd | Retail Equity Research NRB Bearings reported mixed Q3FY19 numbers. The company reported in line topline numbers, albeit with lower margins (other expenses increased 38.1% YoY). Revenues came in at | 242.6 crore, up 16.7% YoY. We estimated revenues of | 242.4 crore. We believe strong topline growth was on account of robust performance across all segments i.e. domestic OEMs, after-markets and exports EBITDA increased 3.7% YoY to | 42 crore. The company reported...
NRB Bearings reported stellar Q2FY19 numbers. Revenues came in at | 251 crore up 20.6% YoY. We estimated revenues of | 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 | 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...
Expect 11% EPS CAGR over FY18-21E. We value the stock at Rs 217(17xSept-20E EPS). Maintain Buy NRB delivered strong performance in 2Q. Revenue grew 21% YoY to Rs 2.5bn (ahead of its peers like SKF +13%), fuelled by strong growth across OEMs segments (2W, CV and tractor segment) and robust export sales. EBITDA rose 20% YoY to Rs 461mn with margin at 18.4% (flat YoY), as a benefit of richer product mix (higher revenue from CVs and Needle bearing) was partially offset by an increase in other expenses (one-time consultancy fee, higher marketing and freight expenses).
Revenue growth & strong margins: Q1FY19 earnings recorded a YoY growth of 43.5% owing to a YoY revenue growth of 30.6% fuelled by an EBITDA margin expansion of 369 bps (vs our expectation of 269 bps).
We value the stock at Rs 217(18xFY20E EPS). Maintain Buy NRB posted strong numbers in 1QFY19. Revenue came in at Rs 2.34bn (+31% YoY), fuelled by strong growth across OEMs segments (2W, CV and tractor segment) and export. EBITDA rose 69% YoY to Rs 444mn with stellar margin at 19% (+369bps YoY) driven by operating leverage and richer product mix (higher revenue from CVs). APAT at Rs. 243mn (+92% YoY) led by higher operating margin and fall in interest cost
ICICI Securities Ltd | Retail Equity Research NRB Bearings reported stellar Q1FY19 numbers. Revenues came in at | 233.9 crore, up 30.6% YoY. We estimated revenues of | 210.1 crore (17.3% YoY growth) for the quarter. We believe strong topline growth was on account of a robust performance across all segments i.e. domestic OEMs, after-markets and exports EBITDA increased 62.1% YoY to | 44.4 crore. The company reported strong EBITDA on account of a sharp increase in gross margins, 400...
ICICI Securities Ltd | Retail Equity Research NRB Bearings reported yet another stellar quarter. Topline, EBITDA and PAT numbers all came in above our estimates Revenues came in at | 235.3 crore, up 24.7% YoY. We estimated revenues of | 215.8 crore (14.3% YoY growth) for the quarter EBITDA increased 56.4% YoY to | 42.1 crore. Strong EBITDA was on account of stable gross margins and lower other expenses during the quarter. Accordingly, EBITDA margins were at 17.9% vs. 14.3% in...
We have increased our 19/20E by 20/18% factoring in revival in CV and export sales along with margin expansion. We value the stock at Rs 217(18xFY20E EPS). Maintain Buy NRB posted strong numbers in 4QFY18. Revenue came in at Rs 2.35bn (+25% YoY), fuelled by strong growth across OEMs segments (2W, CV and tractor segment) and export. EBITDA rose 69% YoY to Rs 422mn with margin at 17.9% (+468bps YoY), driven by operating leverage and richer product mix (higher revenue from CVs). APAT at Rs. 268mn (+129% YoY, 26% QoQ) led by strong operating performance and higher other income (Fx gain Rs 50mn)
Revenue growth continues along with strong margins: Full year FY18earnings grew by 75% owing to a revenue growth of 17.9% backed by improved volumes and EBITDA margin expansion of 359 bps. EBITDA margins improved largely due to lower employee costs (17%) & other expenses (25%).
Healthy Revenue growth coupled with strong margins: YoY EPS grew by177% largely due to an EBITDA expansion of 844 bps and a revenue growth of 14.9%. EBITDA grew by 102% due to lower expenses. We expect the margin trend to continue in future and expect EBITDA margin to reach 21% levels along with netprofit margin reaching 12% by FY20E.
We have increased our FY18/19/20E by 15% factoring in revival in CV and export sales along with margin expansion and roll forward our TP on FY20. We value the stock Rs. 204 (20xFY20E EPS) vs 192 earlier. Maintain Buy NRB posted better-than-expected numbers in 3QFY18, on both the revenue and margin fronts. Revenue came in at Rs 2.07bn (+26% YoY), fuelled by strong growth across OEMs segments (2W, CV and tractor segment) and export. EBITDA stood at Rs 405mn (+103% YoY, 6%QoQ). EBITDA margin came in at 19.5% (+740bps YoY, +109 bps QoQ), benefitting from operating leverage and a richer product mix (higher share of Needle bearings).
NRB Bearings Revenue and Net profit surged by 25.8% and 177.8% yoy respectively. As NRB Bearings derives ~65% of its total revenue from domestic OEMs, recovery in automobile demand, largely in CVs and PVs, led to higher revenue in Q3FY18.
