AI Summary
✦ ClarthaRolex Rings is an industrial manufacturer of forged and machined bearing rings and automotive components in India and overseas. Transmission products, including gear blanks, ring gears, shafts, and lock nuts, support automotive revenue, while chassis components include wheel hubs, bearing components, and CVJ products. Bearing rings serve industrial, railways, windmill, power, aerospace, and other end markets. Q1 FY27’s return to profitability, alongside stable revenue, indicates improving margins despite recent revenue declining 1.0% year-on-year. Profit fell 18.9% year-on-year, so improving margins have not yet translated into earnings growth. ROE and debt-to-equity are unavailable, limiting assessment of capital efficiency and leverage effects. The completed share buyback and post-split EPS improvement support sentiment, but do not resolve underlying earnings pressure. At 32.4 times earnings, the stock appears rich versus its recent profit trajectory, leaving valuation dependent on sustained margin expansion and renewed growth.
Valuation Metrics
Trading 1.8% above historical median. Valuation is declining — currently in the undervalued zone (z-score: -0.11). Confidence: 74%.
Live forward EPS implies next-12-month EPS of ₹9.03. Applying the stock's normalized valuation corridor produces a fair range of ₹221.78 to ₹360.30, with base value near ₹275.14 (+59.0% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹9.03
Forward P/E
19.2x
Base Fair Value
₹275.14
Fair Range
₹221.78 - ₹360.30
Upside To Base
+59.0%
Estimate Source
Live forward EPS
Growth Estimate
+22.4%
5Y Average
30.83
Current
31.01
Overvalued
39.90
Undervalued
24.56
5Y Average
18.75
Current
18.86
Overvalued
22.42
Undervalued
14.09
5Y Average
3.14
Current
3.88
Overvalued
3.61
Undervalued
2.67
Peers & Comparison
Sector: Industrials · Theme: Industrial Machinery
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
KIRLOSKAR BROTHERS LTD KIRLOSBROSIndustrial Machinery | +12.9% | 8.0% | 40.5x Undervalued | -38% vs avg | +3.4% |
INGERSOLL-RAND INDIA LTD INGERRANDIndustrial Machinery | -3.7% | 18.4% | 53.0x Undervalued | -19% vs avg | +19.3% |
KIRLOSKAR PNEUMATIC COM L KIRLPNUIndustrial Machinery | +7.6% | 14.5% | 37.1x Undervalued | -43% vs avg | +13.9% |
LMW LIMITED LMWIndustrial Machinery | +24.0% | 5.2% | 107.8x Premium | +65% vs avg | +16.3% |
CYIENT DLM LIMITED CYIENTDLMIndustrial Machinery | +34.3% | 6.1% | 66.6x Fair | +2% vs avg | +67.3% |
JYOTI CNC AUTOMATION LTD JYOTICNCIndustrial Machinery | +24.0% | 14.7% | 57.8x Fair | -12% vs avg | -13.2% |
KSB LIMITED KSBIndustrial Machinery | +3.6% | 9.0% | 55.8x Fair | -15% vs avg | +2.1% |
CARBORUNDUM UNIVERSAL LTD CARBORUNIVIndustrial Machinery | +19.4% | 3.8% | 104.6x Premium | +60% vs avg | +38.8% |
ROLEX RINGS LIMITED trades at a discount (31.0x vs peer avg 65.4x), suggesting potential undervaluation relative to the Industrial Machinery cohort. Peers include KIRLOSKAR BROTHERS LTD, INGERSOLL-RAND INDIA LTD, KIRLOSKAR PNEUMATIC COM L — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹275 CrDec 2025Latest net profit
₹50 CrDec 2025Latest EPS
₹1.75Dec 2025Net margin
17.5%Dec 2025Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Dec 2025
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 299 | 311 | 321 | 273 | 316 | 311 | 300 | 260 | 284 | 292 | 271 | 275 |
| Expenses | 235 | 241 | 253 | 221 | 244 | 240 | 234 | 209 | 232 | 230 | 217 | 217 |
| Operating Profit | 57.24 | 63.27 | 60.67 | 45.83 | 59.57 | 61.74 | 56.35 | 41.55 | 40.57 | 52.57 | 45.51 | 48.19 |
| OPM % | 19.11% | 20.32% | 18.91% | 16.77% | 18.83% | 19.87% | 18.77% | 15.99% | 14.29% | 18.03% | 16.77% | 17.53% |
| Other Income | 0.25 | 2.37 | 3.82 | 4.57 | 4.31 | 5.27 | 9.46 | 3.85 | 9.88 | 15.61 | 14.36 | 17.42 |
| Interest | 0.4 | 0.61 | 1.21 | 0.37 | 0.51 | 0.42 | 0.67 | 0.16 | 1.13 | 0.18 | 0.78 | 0.13 |
| Depreciation | 7.35 | 6.67 | 6.81 | 6.82 | 12.33 | 9.4 | 9.66 | 9.73 | 11.64 | 9 | 9.33 | 9.42 |
| Profit before tax | 57.09 | 65.03 | 63.28 | 50.03 | 63.37 | 66.59 | 65.14 | 45.24 | 49.32 | 68 | 59.09 | 65.48 |
| Tax % | 18.71% | 25.51% | 25.79% | 26% | 12.23% | 25.05% | 24.38% | 14.26% | 24.9% | 27.71% | 24.96% | 23.34% |
| Net Profit | 46.41 | 48.44 | 46.96 | 37.02 | 55.62 | 49.91 | 49.26 | 38.79 | 37.04 | 49.16 | 44.34 | 50.2 |
| EPS in Rs | 17.04 | 17.79 | 17.24 | 13.59 | 8.67 | 18.33 | 1.81 | 7.41 | 20.06 | 1.81 | 1.73 | 1.75 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.