NRB bearings - Key Questions

• Why demerger, created value?
• Source of technology? Timken relationship? Why did they break off?
• Management depth?
• Tech edge compared to SKF, FAG, TIMKEN
• Why did NKB thru ABC not deliver?
• Thai sub - delivery vs promise?
• Financials - why higher working capital?

NRB Bearings - Cheap but quality?

The company is in the ball and roller bearing business. $ 1 bn industry growing between 12-15%. NRB has 1/8th of the market.

Peer Group Comparison (Rs. in Millions)
Company Name	Year End	Net Sales	EPS	PBIDTM %	PATM %	ROCE %	RONW %	TTM PE (x)
FAG	201212	14466.5	95.8	15.3	11.0	29.3	19.8	17.3
Timken India	201203	8214.7	12.7	11.8	9.8	31.6	23.3	22.6
NRB Bearings	201203	5493.6	5.0	19.6	8.8	20.9	20.8	6.8
Bimetal	201203	1752.9	33.6	10.3	7.3	14.9	9.9	11.4
SKF India	201212	22275.9	36.0	11.6	8.5	26.1	17.5	19.8

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On May 17, Ashish Dhawan bought 5.75 lakh equity shares of NRB Bearings  at Rs 35.94 on the NSE.

However, HDFC MF A/C HDFC Growth Fund sold 6,53,282 shares at Rs 35.90.

In the previous trading session, the share closed at Rs 36.15, up Rs 0.55, or 1.54 percent. It has touched an intraday high of Rs 37.25 and an intraday low of Rs 35.25.

The share touched its 52-week high Rs 49.50 and 52-week low Rs 29.55 on 16 July, 2012 and 22 March, 2013, respectively. Currently, it is trading 26.97 percent below its 52-week high and 22.34 percent above its 52-week low. Market capitalisation stands at Rs 486.86 crore.