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Bimetal Bearings
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Bimetal Bearings Ltd is a major engine bearings producer in India. The company is engaged in manufacturing and selling of bearings, bushings and thrust washers. Their products include thin-walled bearings, bushings and thrust washers, bimetallic strips and alloy powder.
The company plants are located at Chennai, Coimbatore and Hosur. The manufacturing infrastructure consists of a strip mill plant in Chennai with an installed capacity of 1,200 TPA, bearing plant at Coimbatore and Hosur producing 1.2 million half shells per month, and a thrust washer and bushing plant at Chennai with a capacity of 1 million pieces per month.
Bimetal Bearings Ltd was incorporated on April 19, 1961 and was converted into a public limited company on September 5, 1961. The company was established in collaboration with Clevite Corporation, USA and Repco Ltd, Australia.
In the year 1969, Clevite Corporation, USA merged with Gould Inc USA and hence the shares held by Clevite in the company were transferred to Gould. In the year 1975, the company entered into a patent and technical service agreement with Gould Inc. USA, in which the company was permitted to manufacture such items after the expiry of collaboration without any additional payments.
In the year 1983, the company signed an export contract with Auto Exports of Russia for the supply of thin walled engine bearings. In June 1985, the company implemented the second phase of expansion at their bearings plants and stared their commercial production. In the year 1991, the company partially developed infrastructure facilities for manufacture of heavy and large diameter bearings to cater to the requirements of railways. During the year 1995-96, the aluminium tin cladding facility in the strip mill plant at Chennai commenced its production. In the year 2000, the company undertook upgrading their alloy plating facilities at Hosur and the alloy power strip mill facilities were fully geared to meet the export requirements.
During the year 2000-01, the company, with a view to reduce dependence on import of materials and increasing the access to emerging markets, has entered into a Technology Transfer Agreement with Daido Metal Company Ltd, Japan. In addition, the company attained the coveted QS 9000:1998 certification for all its plants from Lloyd?s Register Quality Assurance - LRQA, a status, which is bound to enhance the confidence level of domestic and international customers in the company's products.
During the year 2001-02, the company in association with Daido Metal Co Ltd, Japan promoted a joint venture company BBL Daido (P) Ltd for the manufacture of polymer bearing products. They commenced their operations in the end of the financial year 2002-03.
Bimetal Bearings share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Bimetal Bearings indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Bimetal Bearings is valued compared to its competitors.
Bimetal Bearings PE ratio helps investors understand what is the market value of each stock compared to Bimetal Bearings 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Bimetal Bearings evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Bimetal Bearings generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Bimetal Bearings in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Bimetal Bearings shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Bimetal Bearings compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Bimetal Bearings over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Bimetal Bearings helps investors get an insight into when they can enter or exit the stock. Key components of Bimetal Bearings Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Bimetal Bearings shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Bimetal Bearings ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Bimetal Bearings provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Bimetal Bearings highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Bimetal Bearings .
The balance sheet presents a snapshot of Bimetal Bearings ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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