Galaxy Bearings

Creating this topic for Galaxy Bearing Ltd

Lets meet with our 2 Characters called Krishna Dev Roy and Tenali RK who will help you understand the company….

Krishna Dev Roy-”Tenali give me all details about this company called Galaxy Bearings within 1 week”

Tenali Rk-”Yes sir ”

After one week…

Krishna Dev Roy-”Ok I hope you would have prepared analysis on Galaxy Bearings, Lets start then , What does the company do?”

Introduction

Tenali RK-”Yes sir, the company Galaxy Bearings operates in Bearings Industry and makes tapered roller bearings, cylindrical roller bearings and wheel hub bearings.Their bearings are used by automotive OEMs,industrial , state transport etc.

Business

Let’s us first understand what is friction. Friction is what opposes your motion and hence it reduces your speed , hence to reduce friction between surfaces many methods are used.

You might have heard Static Motion ,Sliding motion and Rolling Motion in your physics books . What does these motions state ? That ,in Rolling Motion the friction is least , and in Rolling motion their are bearing which are used to reduce friction.”

Krishna Dev Roy-”All my doubts about bearings got cleared now, Now lets us proceed to their 3 Products in depth”

Products

Tenali RK-”Yes sir their Products are :-

  1. Tapered Roller Bearings:-These bearings have tapered inner and outer ring raceways between which tapered rollers are arranged. Tapered roller bearings are commonly used to moderate speed, heavy-duty applications where durability is required.

2.Cylindrical Roller Bearing: -Galaxy Bearing Ltd. manufactures many types and sizes of cylindrical roller bearings, the majority being single row bearings with cage & also with a full compliment of rollers. The Galaxy Bearing Ltd. manufacturing program also included precision single and double row cylindrical roller bearings for machine tool applications and double cylindrical roller bearings for rolling mill and other heavy engineering applications as per the customer requirements. The bearings are designed for additional strength and are used when the application carries radial loads.

3.Wheel hub bearings:-Wheel bearings are sets of steel balls or tapers held together by a metal ring. They enable the wheels to rotate smoothly with minimal friction.

Krishna Dev Roy-”Seems interesting… What are growth drivers in this industry”

Growth & Risks

Tenali Rk-”Major growth depends on Automotive and Industrial Sector as they are the major customers for bearing industry.”

Krishna Dev Roy-”Oh ok got it can we consider this as a risk for this companies business?And what are the things in which these bearings are used at?”

Applications of Product

Tenali Rk-”Yes sir this is absolutely a risk for this business , we can call this a shallow cyclical business. to answer your 2nd Question sir:-

Their bearings are used for

  1. Wheel & Axle Application- Galaxy bearings is specialized in manufacturing anti - friction belt used in wheel & axle assemblies for applications such as equipment carrier , bulk tank trail , etc. They also manufacture axle spare part & export it to other country.

  2. Earthmoving & Crane Application- Their bearings are used in earth moving equipments such as Pick-n-carry cranes , industrial sew cranes etc.

3.Motor & Compressor Application- It leads in this space as by their decade cooperation they are mastering advancements in bearings. They provide highest quality service by both time & Cost efficiency .”

Krishna Dev Roy-”Very good seems like we have got whole overview of this company , lets proceed to its financials"
Their financials are robust as their sales is growing at 32%, ROCE at 24%,OPM% at 19%. They are reduced their borrowings significantly and their reserves at also increasing manifolds.”

Krishna Dev Roy- “Thanks Tenali RK. I got to learn a new company today.“

Tenali RK- “Welcome sir“

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Can u share the list of its to 5 customers

Sir it has many customers more than 5
Like it’s customer’s are :- Tata Motors, Mahindra & Mahindra, Ashok leyland , Maruti Suzuki, Cummins India Ltd, Swaraj Engines , Either Motors, premier Ltd, Larsen and tubro , a many more

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Tenali if you can share competition and the competitive advantage of the company, I would be obliged…

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Tenali RK - " Competition of this Company are SNL Bearings, Menon Bearings , SKF India are GalaxyBearings nearest peers
Now the Moat (Competitive Advantage) are:-

  1. It’s large customer base of more than 30+ OEMs.

2.Specialized in manufacturing anti - friction belt used in wheel & axle assemblies.

  1. Cost efficient in many applications

  2. In P2P comparison among its peers , It’s beats every peer with best financials"