Multibagger Update: This stock jumped from Rs 67 to Rs 168.7 in two years
Two years back, on 30 October 2020, the stock was trading at Rs 67, while on 31 October 2022, it is quoting at Rs 168.7.
Shares of the company touched Rs 189.65 during this period and it belongs to the S&P 500 SmallCap index having a market capitalisation of Rs 1853 crore. The name of the stock is NRB Bearings Ltd.
The company manufactures ball and roller bearings, which are used in the automotive and mobility industries. In India, NRB Bearings was a pioneer in the production of needle roller bearings. NRB bearings are found in more than 90% of vehicles on Indian roads. The company's products are exported to 45 countries.
The company has announced a CAPEX of Rs 200 crore for the next 2-3 year period. Expansion of R&D facilities for two of its R&D centres spanning over 36,000 sq feet, NRBs supply chain and CAPEX investments have already been positioned to grow market share as the shift to EVs intensifies. The capacity expansion in the Thailand subsidiary by additional CAPEX investment of Rs 35 crore over the next two financial years.
The company's revenue for the June quarter was Rs 236 crore, with a net profit of Rs 24.46 crore. During FY22, the company generated a net profit of Rs 75.61 crore on revenue of Rs 944 crore.
The company's ROE and ROCE as of the end of FY22 are 13.7% and 14.8%, respectively. Additionally, it has a good dividend yield of 1.01%.
About the shareholding pattern, 49.86% of the company’s stake is owned by the promoters, 21.52% by FIIs, 11.87% by DIIs, and the rest 16.75% by non-institutional investors.
The company is a part of the BSE Small-Cap index and has a market capitalisation of Rs 1664 crore. Currently, it has a PE ratio of 21x. The 52-week high and low of the stock are Rs 189.65 and Rs 106.7, respectively.
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