Mehabe score: 5 G Factor: 6 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 7.
Description
Galaxy Bearings Limited started manufacturing Taper Roller Bearings & Cylindrical Roller Bearings in 1990 and so far developed a variety of bearings to cater to different market segments of the Automobile Industry. #
GBL is headed by Mr. Vinodrai Kansagara and Mr. Bharatkumar Ghodasara, who looks after the overall functions of the company and holds experience of more than three decades in the same line of business. GBL acts as a contract manufacturer for other bearing manufacturers like Action Construction Equipment Limited, Escorts Limited, Tritech Engineering Holdings Limited, Delux Bearings Private Limited
Main Points
Product Portfolio
Tapered Roller Bearing: These bearings have tapered inner and outer ring raceways between which tapered rollers are arranged. Galaxy Bearing manufactures single-row & double rows taper roller bearings with metric as well as inch dimensions. #
Tapered roller bearings are used in car and vehicle wheel bearings where they must cope simultaneously with large vertical and horizontal forces. Tapered roller bearings are commonly used for moderate speed, heavy-duty applications where durability is required.Site:526073
Market Cap:
Rs 71.0 cr
Price:
223.0
Trading pe:
8.65x
Book-value:
129/share
Div yield:
0.00 %
Earning yield:
14.36%
Face-value:
10.0/share
52week high:
237.15
52week low:
128.25
Technical Analysis
Stock trades at 223.0, above its 50dma 210.15. It also trades above its 200dma 190.67. The stock remains bullish on techicals
The 52 week high is at 237.15 and the 52week low is at 128.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 2.17% over past five years.
Competition
– The industry trades at a mean P/E of 30.8x. Timken India trades at the industry’s max P/E of 72.68x. 526073 trades at a P/E of 8.65x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 526073 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 15.7%. The max 1- month return was given by Austin Engg Co: a return of 30.27 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 15.89 cr compared to Rs 10.09 cr for period ended Mar 2020, a rise of 57.5%
Operating Profits reported at Rs 3.4 cr for period ended Mar 2021 vis-vis 2.22 for period ended Mar 2020 .
Operating Margins contracted -60.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 6.35 compared to Rs 7.45 for previous quarter ended Dec 2020 and Rs 7.45 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 62.67 cr for period ended Mar 2021 vis-vis sales of Rs 48.2 cr for the period ended Mar 2020, a healthy growth of 23.1%. The 3 year sales cagr stood at 6.2%.
Operating margins expanded to 18.38% for period ended Mar 2021 vis-vis 14.77% for period ended Mar 2020, expansion of 361.0 bps.
Net Profit reported at Rs 7.86 cr for period ended Mar 2021 vis-vis sales of Rs 5.6 cr for the period ended Mar 2020, rising 28.8%.
Company recorded a healthy Net Profit CAGR of 29.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 51% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 61% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 51.53% vis-vis 51.54% for Dec 2020
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 2.17% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 210.15 and is trading at 223.0, thus bullish price action wise.
