Auto ancillary stock jumps 7% after reporting 50% YoY increase in net profit

Micro-Cap company engaged in manufacturing of auto components & equipment is in focus after it jumped up to 7 percent following its Q3 results with robust net profit growth.

Share Price Movement

With a market capitalization of Rs.140 Crore, the stock of SNL bearings opened at  Rs.388, up 5.28 percent from yesterday’s closing price of  Rs. Rs.368.25. The stock made a high of  Rs.395.90 which is 7.50 percent up from the previous close. Additionally, the past month’s return for the stock is 4 percent and the 5-year return stands at 118 percent

Q3FY25 Results

The company reported a 9.37 percent YoY increase in revenue from  Rs.11.41 Crore in Q3FY24 to  Rs.12.48 Crore in Q3FY25. On a QoQ basis, the company reported a marginal decrease of 1.80 percent in revenue from  Rs.12.71 Crore in the previous quarter. 

Their Net profit saw a 49.23 percent YoY increase from  Rs.1.95 Crore to  Rs.2.91 Crore for the same period. On a QoQ, basis their net profits also saw an increase of  13.22 percent from  Rs.2.57 Crore for the same period.

The operating Profit Margin for Q3FY25 stood at 33.09 percent compared to 26.64 percent for Q3FY24, and the Net Profit Margin stood at 23.32 percent from 17.09  percent for the same period.

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Auto Sector Outlook

India’s auto sector is set for strong growth, driven by rising middle-class incomes and a young population. With $35.40 billion in FDI inflows and a $200 billion investment opportunity, India is on track to become the largest EV and conventional vehicle market by 2030. This growth will be a major win for auto ancillary companies, boosting demand for components 

About the Company

SNL Bearings Limited, a subsidiary of NRB Bearings, is a leading Indian manufacturer of high-precision needle roller bearings for two-wheelers, passenger cars, and commercial vehicles. Established in 1979 and based in Ranchi, Jharkhand, the company was originally promoted by the Shriram Group in collaboration with INA Germany before becoming part of NRB Bearings in 2000. It supplies major automakers like Bajaj, Maruti, and Tata Motors, along with exports to global markets.

Written By Abhishek Das

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