NRB Bearings Ltd. share price target

ICICI Securities Ltd | Retail Equity Research NRB Bearings reported weak Q3FY17 results. Though topline numbers came in line with our estimates, EBITDA and bottomline were below our estimates due to a sharp increase of 8.3% and 11% in employee cost and other expenses, respectively Revenues came in at | 165.7 crore, up 4.4%YoY and in line with our estimates of | 168 crore for the quarter EBITDA margins came in at 12% vs. 12.8% in Q3FY16. We estimate...

Muted Growth for Q2FY17; Auto Recovery Holds Key for Future: Consolidated sales recorded a muted growth of 2.9%/6.9% QoQ/ YoY during Q2FY17 standing at Rs. 1797 mn and EBITDA declined by 3.4%/8.0%QoQ/YoY during this quarter to Rs. 283 mn and EBITDA margin contracted by 103 bps, 256 bps QoQ/YoY, to 15.8% in Q2FY17. Adjusted PAT fell 8.1% YoY toRs.164 mn, however, has improved by 16.0% sequentially.

ICICI Securities Ltd | Retail Equity Research NRB Bearings reported Q2FY17 results below our estimates on the operational front. Revenues came in at | 179.7 crore, up 7% YoY but below our expectation of | 190 crore for the quarter EBITDA margins came in at 15.8% vs. 18.3% YoY. Margins were higher in Q2FY16 on account of forex gain of | 3.3 crore. We estimated margins of 17% for the quarter. In Q2FY17, the company reported forex loss of | 1.1 crore. Other expenses for the quarter also...

ICICI Securities Ltd | Retail Equity Research NRB Bearings reported decent Q1FY17 numbers, which were broadly in line with our estimates. Revenues came in at | 174.6 crore, up 9.2% YoY and below our estimate of | 187.5 crore for the quarter EBITDA increased 26.5% YoY to | 29.3 crore (our estimate: | 30 crore). EBITDA margins for Q1FY17 increased 230 bps YoY to 16.8% (our estimate: 16%) on account of an improvement in gross margins (improvement of 50 bps YoY), lower employee cost (improvement of...

The company reported higher depreciation of | 10.3 crore as it componentised its fixed assets, increasing depreciation amount by | 3.94 crore. Consequently, PAT increased only 2.7% YoY to | 12 crore...

NRBBR well positioned to benefit from economic recovery: Industrial and investment activity are showing signs of improvement with GDP estimated to grow at 7.5-8.0% during FY16E-17E. Bearing, being a basic industry and having its application across all sectors, is well positioned to benefit from economic revival. NRBBR, well equipped with diverse product portfolio, is expected to grow (sales) at a CAGR of 10.5% between FY15-17E to Rs. 8,812 Mn, while improving EBITDA and PAT margins to 22.9% & 11.6% levels respectively.