Is NRB Bearings overvalued or undervalued?

As of 12 June 2025, the valuation grade for NRB Bearings has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 19.32, an EV to EBITDA of 13.09, and a PEG ratio of 0.46, which suggests that the stock may be trading at a discount relative to its growth potential.
In comparison to its peers, NRB Bearings stands out with a significantly lower PE ratio than Schaeffler India (67.45) and Timken India (55.14), both of which are classified as very expensive. Additionally, NRB's EV to EBITDA ratio is more favorable than that of its peers, reinforcing its attractive valuation. While the stock has underperformed the Sensex over the past year, it has shown strong returns over longer periods, such as a 113.73% increase over three years, further supporting the argument for its undervaluation.