Buy NRB Bearings, target price Rs 150: Angel Broking

Angel Broking has buy call on NRB Bearings with a target price of Rs 150. The current market price of NRB Bearings Ltd. is Rs 119.

NRB Bearings Ltd., incorporated in the year 1965, is a Small Cap company (having a market cap of Rs 1151.93 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 249.02 Crore, up 25.53 % from last quarter Total Income of Rs 198.37 Crore and up 31.60 % from last year same quarter Total Income of Rs 189.23 Crore. Company reported net profit after tax of Rs 23.28 Crore in latest quarter.

Investment Rationale
NRB is one of the leading suppliers of bearings to Auto companies and has a wide customer base. The company has also been focusing on exports markets in order to diversify its revenue base and posted a good set of numbers for Q2FY21 as revenues grew by 4.6% YoY while PAT was up by 56% YoY. The management has highlighted that exports growth should be in excess of 20% for FY21. The brokerage believes that the company is ideally placed to capture the growth revival in the auto segment while exports will be another growth avenue for the company