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Today is 7th January 2024 and in this blog you are going to get info on Bearing Companies and EPS, ROCE and other stats.
Here are Bearing Companies related stats :
| S.No. | Name | CMP (Rs.) | P/E | Market Cap (Rs. Cr.) | Div. Yld (%) | NP Qtr (Rs. Cr.) | Qtr Profit Var (%) | Sales Qtr (Rs. Cr.) | Qtr Sales Var (%) | ROCE (%) | ROA 12M (%) | Debt/Equity | EPS 12M (Rs.) | ROE (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Schaeffler India | 3500.35 | 57.69 | 54,756.89 | 0.74 | 247.13 | 5.16 | 2,072.83 | 12.15 | 26.72 | 15.18 | 0.01 | 60.51 | 20.01 |
| 2 | Timken India | 2924.40 | 55.63 | 21,984.63 | 0.09 | 89.95 | -3.33 | 752.89 | 10.40 | 23.36 | 14.11 | 0.01 | 52.54 | 17.56 |
| 3 | SKF India | 4375.25 | 38.49 | 21,570.88 | 2.97 | 94.34 | 4.57 | 1,244.23 | 10.58 | 29.15 | 16.14 | 0.00 | 113.35 | 21.94 |
| 4 | NRB Bearings | 275.85 | 25.10 | 2,665.89 | 0.91 | 35.94 | 46.55 | 301.51 | 8.07 | 14.55 | 7.98 | 0.16 | 26.52 | 12.70 |
| 5 | SKP Bearing | 251.50 | 39.09 | 417.49 | 0.44 | 1.01 | – | 34.46 | – | – | – | 0.65 | 6.43 | – |
| 6 | Galaxy Bearings | 1040.75 | 17.22 | 330.96 | 0.00 | 4.73 | 12.62 | 35.94 | 8.16 | 27.69 | 16.78 | 0.15 | 60.44 | 22.34 |
| 7 | Bimetal Bearings | 648.90 | 29.69 | 248.53 | 1.93 | 2.37 | -6.32 | 62.61 | 6.12 | 5.61 | 3.23 | 0.04 | 21.88 | 4.09 |
| 8 | Vishal Bearings | 124.50 | – | 134.35 | 0.00 | 0.90 | 181.25 | 22.09 | -23.27 | 6.19 | 1.12 | 1.45 | -0.75 | 3.23 |
| 9 | SNL Bearings | 368.45 | 14.49 | 133.01 | 1.90 | 2.57 | 19.53 | 12.71 | -2.38 | 18.68 | 12.01 | 0.00 | 25.42 | 13.63 |
| 10 | Austin Engg Co | 182.00 | 14.90 | 63.34 | 0.00 | 0.99 | 7.61 | 26.28 | -6.21 | 8.91 | 3.69 | 0.00 | 12.22 | 6.17 |
| 11 | NRB Indl Bearing | 24.34 | – | 56.99 | 0.00 | -7.48 | -24.05 | 16.36 | -14.03 | -16.55 | -22.12 | – | -12.07 | – |
| 12 | Benara Bearings | 21.00 | – | 37.18 | 0.00 | -1.55 | – | 6.02 | -31.98 | -2.39 | -3.48 | 3.14 | -1.77 | -14.07 |
Top Picks Based on Stats :
- Schaeffler India
- Reason:
- High ROCE (26.72%) and ROE (20.01%).
- Low debt-to-equity (0.01).
- Consistent profit growth (Qtr Profit Var: 5.16%).
- Strong EPS (60.51) and significant market cap (Rs. 54,756.89 Cr.).
- Reason:
- SKF India
- Reason:
- Excellent ROCE (29.15%) and ROE (21.94%).
- Zero debt-to-equity ratio (0.00).
- High dividend yield (2.97%) and EPS (113.35).
- Moderate profit growth (Qtr Profit Var: 4.57%).
- Reason:
- Timken India
- Reason:
- Good ROCE (23.36%) and ROE (17.56%).
- Low debt-to-equity (0.01).
- Strong EPS (52.54).
- Moderate sales growth (Qtr Sales Var: 10.40%).
- Reason:
- Galaxy Bearings
- Reason:
- Excellent ROCE (27.69%) and ROE (22.34%).
- Low debt-to-equity (0.15).
- Good profit growth (Qtr Profit Var: 12.62%).
- Reason:
Honorable Mentions
These companies also have strong financial metrics but might not rank as high overall:
- NRB Bearings:
- Solid ROCE (14.55%) and EPS (26.52).
- High profit growth (Qtr Profit Var: 46.55%).
- Slightly higher debt-to-equity (0.16) compared to top picks.
- SNL Bearings:
- Good ROCE (18.68%) and ROE (13.63%).
- Low debt-to-equity (0.00).
- Moderate profit growth (19.53%).
Companies to Avoid at the Moment or Companies with Negative ROCE or Wear ROCE :
These companies show weak financial performance, negative growth, or high debt:
- NRB Indl Bearing:
- Negative profit growth (-24.05%) and sales decline (-14.03%).
- Negative ROCE (-16.55%) and ROE (-12.07%).
- Benara Bearings:
- Negative ROCE (-2.39%) and ROE (-14.07%).
- Poor profit growth and sales decline.
- Austin Engg Co:
- Weak ROCE (8.91%) and ROE (6.17%).
- Decline in sales (-6.21%).
Final Suggestion:
Focus on Schaeffler India, SKF India, Timken India, and Galaxy Bearings as they exhibit strong fundamentals, low debt, and consistent growth.
Why Investing in the Bearings Industry might be a good idea :
Investing in bearing companies can be a good opportunity for long-term investors due to several compelling reasons. Bearings are a crucial component in almost every industrial, automotive, and machinery application, making them indispensable to various sectors. Here’s why bearing companies are worth considering:
1. Diverse Industry Demand
- Bearings are used in automobiles, aerospace, railways, construction equipment, manufacturing machinery, wind turbines, and even consumer electronics.
- The rising demand for industrial automation, electric vehicles (EVs), and renewable energy sources (wind turbines require specialized bearings) further drives growth.
- Bearings are mission-critical components, ensuring continuous demand across industries.
2. Long-Term Growth Drivers
- Automotive Sector Growth:
- Bearings are essential in vehicles, including traditional and electric vehicles (EVs).
- The EV revolution is driving demand for advanced and energy-efficient bearings.
- India’s and other emerging markets’ automotive sectors are expanding, providing a steady demand for bearings.
- Industrial Automation:
- With industries adopting automation and robotics, demand for precision bearings is rising.
- Infrastructure Development:
- Governments globally are investing in railways, highways, and construction, boosting demand for heavy machinery, which depends on bearings.
- Renewable Energy:
- Bearings play a critical role in wind turbines and hydroelectric plants, sectors that are growing globally.
3. Competitive Advantages
- High Barriers to Entry:
- The industry requires significant technical expertise, research & development (R&D), and high initial capital investment.
- Established players like SKF, Timken, and Schaeffler benefit from their technological edge and strong market share.
- Economies of Scale:
- Larger bearing companies enjoy economies of scale, allowing them to maintain lower costs while ensuring quality.
- Brands like SKF and Schaeffler dominate due to their established networks and advanced R&D.
4. Resilient Business Model
- Bearings companies generate steady revenues because:
- Bearings require replacement and maintenance over time due to wear and tear, ensuring repeat demand.
- Some sectors, such as defense, railways, and energy, demand premium, high-margin products.
- Strong aftermarket sales provide consistent cash flows.
5. Favorable Financial Metrics
- Bearing companies often have strong financial fundamentals, such as:
- High Return Ratios: Metrics like ROCE (Return on Capital Employed) and ROE (Return on Equity) are typically high for leading companies.
- Low Debt Levels: Many established players have low debt-to-equity ratios, making them financially stable.
- Consistent Growth: With strong global demand, revenues, and profitability tend to grow steadily.
6. Growth Potential in India
- “Make in India” Initiative: Indian government initiatives are encouraging manufacturing and infrastructure growth, directly benefiting domestic bearing companies.
- Shift from China: Global manufacturers are diversifying supply chains away from China, creating opportunities for Indian companies.
- Increasing investments in railways, metro projects, and defense offer strong domestic demand for bearing manufacturers like NRB Bearings and Timken India.
7. Export Potential
- Indian bearing companies are becoming preferred suppliers to global manufacturers due to their cost competitiveness and quality.
- Exports contribute significantly to revenues, especially for companies like Timken India and Schaeffler India, reducing dependency on domestic demand.
Risks to Watch
- Raw Material Costs: Bearings rely on steel and alloys, and fluctuating raw material prices can impact margins.
- Competition: While barriers to entry are high, the industry is competitive, with global players dominating.
- Technological Disruption: Companies need to invest in R&D to keep up with advancements in material science and design.
Conclusion
Bearing companies are attractive investments due to their strong fundamentals, diversified end-user base, and long-term growth potential. Established players with low debt, high return ratios, and strong market positions—such as SKF India, Schaeffler India, and Timken India—are particularly suited for long-term portfolios.
Happy Investing