Is NRB Bearings overvalued or undervalued?

As of 17 June 2025, NRB Bearings' valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 20.02, an EV to EBITDA ratio of 13.55, and a PEG ratio of 0.48. These figures suggest that while the company is performing adequately, it may not offer significant upside potential at this time.
In comparison to its peers, NRB Bearings stands out with a similar PE ratio to Galaxy Bearings at 21.3, which is also rated fair, while competitors like Schaeffler India and Timken India are considered very expensive with PE ratios of 64.35 and 53.53, respectively. The recent stock performance shows that NRB Bearings has underperformed the Sensex over the past year, with a return of -18.77% compared to the Sensex's 5.96%. This underperformance, coupled with its current valuation metrics, reinforces the view that NRB Bearings is fairly valued in the current market environment.