Recent Price Performance and Market Context
NRB Bearings’ stock has underperformed significantly relative to the broader market and its sector peers. Over the last week, the share price has declined by 8.76%, compared to a more modest 1.77% fall in the Sensex. The one-month performance is even more stark, with the stock down 17.08% against the Sensex’s 3.56% decline. Year-to-date, the stock has shed 13.88%, markedly worse than the Sensex’s 3.89% fall. This underperformance is further underscored by the stock’s 13.48% negative return over the past year, while the Sensex has gained 8.01% in the same period.
On 21-Jan, the stock touched an intraday low of ₹230.6, representing a 4.89% drop for the day. The weighted average price indicates that a higher volume of shares traded closer to this low, suggesting selling pressure. Additionally, NRB Bearings is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical outlook.
Investor participation has risen, with delivery volumes on 20-Jan increasing by 110.36% to 1.96 lakh shares compared to the five-day average. This heightened activity, coupled with the stock’s liquidity allowing trades of approximately ₹0.09 crore, indicates that the decline is accompanied by active selling rather than illiquidity.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Fundamental Strengths Amidst Price Weakness
Despite the recent price weakness, NRB Bearings exhibits robust fundamental metrics that suggest underlying business strength. The company boasts a high Return on Capital Employed (ROCE) of 15.40%, reflecting efficient management and effective utilisation of capital. Its debt servicing capability is strong, with a low Debt to EBITDA ratio of 0.78 times, indicating manageable leverage and financial stability.
Long-term growth prospects remain healthy, as evidenced by an impressive annual operating profit growth rate of 47.76%. The company’s latest quarterly results, reported in September 2025, showed a record Profit After Tax (PAT) of ₹40.63 crore and an Earnings Per Share (EPS) of ₹4.19, both the highest to date. These figures highlight the company’s ability to generate increasing profitability despite recent market headwinds.
Valuation metrics further support a cautious hold stance. NRB Bearings has a Return on Equity (ROE) of 14.9% and trades at a Price to Book Value of 2.4, which is considered attractive relative to its peers’ historical valuations. Although the stock’s one-year return is negative at -13.48%, profits have grown by 34.9% over the same period, resulting in a low Price/Earnings to Growth (PEG) ratio of 0.5. This suggests that the stock may be undervalued given its earnings growth trajectory.
Why settle for NRB Bearings? SwitchER evaluates this Auto Components & Equipments Smallcap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Balancing Market Sentiment and Fundamentals
The persistent decline in NRB Bearings’ share price over the past nine days, amounting to a 17.49% loss, appears to be driven primarily by negative market sentiment and technical factors rather than deteriorating business fundamentals. The stock’s underperformance relative to the Sensex and its sector peers suggests that investors may be cautious due to broader market conditions or sector-specific challenges impacting auto components stocks.
Moreover, the fact that the stock is trading below all major moving averages indicates a bearish trend that could be self-reinforcing as technical traders react to these signals. The increased delivery volume near the lows points to active selling pressure, which may be exacerbated by short-term profit-taking or risk aversion among investors.
Nevertheless, the company’s strong financial metrics, including high ROCE, low leverage, and robust profit growth, provide a solid foundation for potential recovery. The attractive valuation relative to peers and the low PEG ratio imply that the market may be undervaluing the stock’s growth prospects, presenting a possible opportunity for investors with a longer-term horizon.
In summary, NRB Bearings Ltd’s recent share price decline is largely a reflection of short-term market dynamics and technical selling rather than fundamental weakness. Investors should weigh the current bearish price action against the company’s strong operational performance and valuation metrics when considering their investment decisions.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
