1. At a Glance – Bearings, Borrowings & Bureaucracy
Here’s the situation.
Galaxy Bearings Ltd is a ₹193 Cr market cap industrial player trading at ₹607 with a P/E of 30.3, a Price-to-Book of 1.8, and zero dividend — because apparently cash prefers to stay inside the factory.
Latest quarterly numbers (Dec 2025):
- Sales: ₹14.70 Cr (QoQ down, YoY down)
- PAT: ₹1.79 Cr (positive after last quarter’s loss)
- EPS: ₹5.63
- ROCE: 16.1%
- ROE: 13.6%
- Debt: ₹26.5 Cr
- 3-month return: -19.8%
- 1-year return: -18.3%
And just when business needed stability… the company disclosed US OFAC sanctions impacting USD/EURO access.
So now the question is simple:
Can a ₹193 Cr Rajkot-based bearing exporter survive a global payments blockade while managing a 289-day cash conversion cycle?
Or are we looking at a precision bearing running without lubrication?
Let’s investigate.
2. Introduction – The Rajkot Roller Coaster
Galaxy Bearings isn’t a flashy startup. No AI. No blockchain. No EV pivot.
Just metal. Bearings. Rotation. And export invoices.
Incorporated in 1990, it manufactures taper roller bearings, cylindrical roller bearings, and wheel hub units. Installed capacity? ~3.1 million bearings per year from Rajkot.
Exports account for ~73% of revenue (FY23). Domestic? 27%.
Now imagine this:
You are heavily export dependent…
And suddenly USD & EURO access gets blocked.
That’s not a headwind.
That’s a sandstorm in the gearbox.
FY25 numbers already show slowdown:
- Sales fell to ₹104.22 Cr vs ₹127.12 Cr in FY24.
- TTM sales now at ₹76.64 Cr.
- TTM profit down 59%.
But here’s the twist:
Despite falling sales, the company is still profitable.
So is this a temporary bearing jam?
Or structural misalignment?
Let’s decode.
3. Business Model – WTF Do They Even Do?
Okay, simple language.
Galaxy Bearings manufactures components that make rotating machines rotate smoothly.
Main products:
- Taper Roller Bearings
- Cylindrical Roller Bearings
- Wheel Hub Units
Applications:
- Wheel axles
- Gear boxes
- Machine tools
- Compressors
- Diesel engines
- Earth movers
- Material handling
Basically, if something rotates and makes money, there’s a bearing inside.
They operate on a 3-phase supply strategy:
- Sell under “Galaxy” brand for aftermarket.
- Manufacture for OEMs under their brand.
- Supply bearing rings to other manufacturers.
That means:
- B2B heavy
- Export heavy
- Working capital heavy
And here’s the problem…
Debtor days jumped to 155 days.
Inventory days at 201 days.
Cash conversion cycle at 289 days.
That’s not rotation.
That’s stagnation.
Question for you:
If your customers take 5 months to pay, how comfortable are you funding exports during sanctions?
4. Financials Overview – Quarterly Reality Check
Q1 EPS: ₹8.14
Q2 EPS: -₹6.76
Q3 EPS: ₹5.63
Average EPS = (8.14 – 6.76 + 5.63) / 3 = ₹2.34
Annualised EPS = ₹2.34 × 4 = ₹9.36
At CMP ₹607:
Recalculated P/E = 607 / 9.36 ≈ 64.8
Not 30x.
Almost 65x on annualised basis.
Quarterly Comparison (₹
