Shares of NRB Bearings Ltd climbed nearly 5% on Monday after promoter pledged shareholding fell sharply to 11.42% from 31.64%.
The stock touched an intraday high of Rs 444, compared with the previous close of Rs 425. The company has a market capitalisation of about Rs 4,200 crore and trades at a price-to-earnings ratio of 28.4, slightly above the industry average of 27.7.
Promoter pledge reduced
Managing Director Harshbeena Zaveri released 19.6 million shares from pledge.
According to the company, the reduction was enabled through a block deal that lowered promoter-level debt.
Following the transaction, promoter pledged shareholding declined:
- Earlier: 31.64%
- Current: 11.42%
Institutional investors enter
The transaction also saw participation from several institutional investors, including:
- Arohi Capital.
- PGIM.
- Alchemy.
- Arcadian.
Their entry signals increasing interest from long-term investors.
Focus on growth and diversification
NRB Bearings is pursuing expansion across both automotive and industrial businesses.
The company said it remains focused on an EV-agnostic strategy, allowing it to cater to both electric and conventional vehicle platforms.
Industrial business targeted for expansion
Industrial applications currently account for around 12-14% of revenue.
The company aims to raise this contribution to 25% by 2031 through acquisitions and joint ventures.
Key sectors being targeted include:
- Aerospace.
- Defence.
- Industrial gearboxes.
- Construction equipment.
- Data centres.
Overseas markets remain a priority
International business contributes around 20-25% of revenue.
NRB is using a “Make in USA” strategy to expand its presence in the American market.
The company said its research and development capabilities and engineering expertise have helped build relationships with global customers.
Business profile
NRB Bearings Ltd manufactures:
- Needle roller bearings.
- Cylindrical roller bearings.
- Tapered roller bearings.
- Ball bearings.
- Precision components.
Its products cater to:
- Automotive.
- Industrial.
- Aerospace.
- Railways.
- Mobility applications.
The company supplies components to several global OEMs and operates multiple manufacturing facilities in India.
Financial performance
Year-on-year
- Revenue increased to Rs 372 crore from Rs 329 crore, up 13%.
- Operating profit rose to Rs 67 crore from Rs 60 crore, up 11.6%.
- Net profit stood at Rs 42 crore, compared with a loss of Rs 1 crore a year ago.
Quarter-on-quarter
- Revenue rose from Rs 328 crore to Rs 372 crore, up 13%.
- Operating profit increased from Rs 60 crore to Rs 67 crore, up 11.6%.
- Net profit climbed from Rs 29 crore to Rs 42 crore, a rise of 45%.
TL;DR:
NRB Bearings shares rose 5% after promoters reduced pledged holdings to 11.42% from 31.64%. The company is also pursuing expansion in industrial businesses and international markets while strengthening its balance sheet.
AI summary
- NRB Bearings gained nearly 5%.
- Promoter pledged shareholding dropped to 11.42%.
- Institutional investors including PGIM and Alchemy participated in the transaction.
- The company aims to increase industrial revenue contribution to 25% by 2031.
- Net profit rose to Rs 42 crore in the latest quarter.
