Best Abrasives & Bearings Companies Stocks to Invest in Jan, 2026

What are Abrasives & Bearings Companies Stocks?

Abrasive & Bearings Companies stocks refer to shares of companies that manufacture essential industrial components like grinding wheels, cutting tools, and precision bearings, catering to automotive, construction, and manufacturing sectors.

India is a key player in this industry, with major companies like Carborundum Universal (CUMI), Grindwell Norton, Orient Abrasives, and Wendt India supplying high-quality abrasives for engineering, steel, and aerospace applications.

 The demand for super abrasives like diamond and cubic boron nitride (CBN) tools is rising, especially in precision industries such as automotive and aerospace. Bearings are also crucial for automotive and railway sectors, with electric vehicles (EVs) further driving demand. Leading bearing manufacturers in India include SKF India, NRB Bearings, Timken India, and Schaeffler India.

These companies play a vital role in India’s industrial growth, supporting key sectors with high-quality components. With infrastructure expansion, rising exports, and technological advancements, the abrasives and bearings market is set for sustained growth.

Why You Should Invest in Abrasives & Bearings Companies stocks?

You should invest in abrasives and bearing company stocks for 3 main reasons. The reasons are consistent demand, indians industrial expansion and technological advancements.

• Consistent Demand: Automotive, construction, metal fabrication, and heavy machinery are showing consistent demand. The global abrasives market was valued at USD 45.95 billion in 2023 and is projected to reach USD 76.93 billion by 2032, growing at a CAGR of 5.9%. In 2022, global motor vehicle production reached 85.4 million units, a 5.7% increase from the previous year.

• India’s Industrial Expansion: The Make in India and PLI schemes, launched in 2014 and 2020, aim to boost domestic manufacturing and exports. As of March 2025, PLI attracted ₹1.61 lakh crore ($19B) in investments, generating ₹14 lakh crore ($163B) in output and ₹5.31 lakh crore ($62B) in exports. These initiatives have strengthened India’s industrial growth, job creation, and global competitiveness.

• Technological advancements: Technological advancements in abrasives and bearings boost profitability by enhancing efficiency, reducing waste, and extending product lifespan. Super abrasives like CBN and diamond tools lower replacement costs and improve machining precision. Precision bearings, such as ceramic hybrids, reduce maintenance and downtime, increasing operational efficiency. 

As industries shift toward sustainable solutions, demand for energy-efficient bearings and advanced abrasives will grow. Additionally, India’s emergence as a global manufacturing hub, supported by government initiatives, strengthens the sector’s outlook. With steady demand, technological innovation, and expanding global markets, these stocks present a promising investment opportunity.

What is the Future of Abrasives & Bearings Companies Stocks?

India is set to play a crucial role in the future of abrasives and bearings companies’ stocks, driven by rapid industrialization, government initiatives, and increasing domestic production. The Make in India and PLI (Production Linked Incentive) schemes are accelerating local manufacturing, reducing import dependence, and boosting exports.

With India’s abrasives market valued at approximately ₹5,000 crore and growing due to rising demand in automotive, construction, and metal fabrication, the country is emerging as a key player. Similarly, the Indian bearings market, supported by the automotive and industrial machinery sectors, is poised for significant expansion, positioning India as a global manufacturing hub for bearings production.

The overall future of abrasives and bearings stocks looks promising, fueled by rising industrial demand, technological advancements, and global economic expansion. The global abrasives market, valued at USD 45.95 billion in 2023, is projected to reach USD 76.93 billion by 2032, growing at a CAGR of 5.9%, while the global bearings market is expected to expand at a CAGR of 8.3%, driven by increasing demand for electric vehicles (EVs), automation, and high-speed machinery. 

What Factors Affect Abrasives & Bearings Companies Stock Prices?

Abrasives & Bearings Companies’ Stock prices are affected by 3 main factors. The factors are demand-supply dynamics, raw materials, and government policies

• Demand-supply dynamics: The abrasives and bearings industry is influenced by demand from automotive, aerospace, construction, and manufacturing sectors. India’s passenger car market, valued at $32.7 billion in 2021, is projected to reach $54.84 billion by 2027 (CAGR 9%), boosting demand for abrasives and bearings. This growth is expected to positively impact stocks of companies like SKF India, NRB Bearings, and Schaeffler India.

• Raw Material Prices: Fluctuations in raw material prices significantly impact the production costs and profit margins of companies. Steel, a key component in bearings, accounts for 50-66% of revenue. Between 2019-2021, HRC and CRC steel prices grew at a CAGR of 16.6% and 15.9%, increasing costs and potentially reducing profitability, affecting stock

• Government policies: Policies like Make in India and the PLI scheme boost domestic manufacturing, benefiting abrasives and bearings companies. The PLI scheme has attracted ₹1.61 lakh crore in investments, driving local production and exports. Incentives like duty-free raw material imports (AA scheme) and customs duty exemptions (EPCG scheme) reduce costs and enhance competitiveness.

Other factors like technological advancements, global market expansion, and macroeconomic trends also impact stock prices. Additionally, environmental regulations, supply chain disruptions, and the shift toward EVs and automation influence industry growth. Investors should consider these trends for informed decisions.

What are the Advantages of Investing in Abrasives & Bearings Companies Stocks?

Investing in Abrasives & Bearings Companies stocks is advantageous for 3 main reasons. The reasons are consistent demand, export opportunities and technological advancements.

• Consistent Demand: The demand for abrasives and bearings is growing due to industrial expansion, technology upgrades, and global infrastructure projects. The automotive, construction, and manufacturing sectors drive this demand, along with rising exports. The global automotive bearing market, valued at $14.76 billion in 2023, is expected to reach $21.38 billion by 2032 at a CAGR of 4.3%.
  
• Export Opportunities: India’s high-quality manufacturing in abrasives and bearings is driving export growth, boosting revenue for leading companies. India exported bearings worth $523 million in FY23, with key markets including the U.S., Germany, and China. Companies like SKF India and NRB Bearings benefit from global demand for precision bearings in automotive, aerospace, and industrial machinery.
  
• Technological advancements: Super abrasives (diamond & CBN tools) and precision bearings are boosting demand in EVs, robotics, automation, and renewables. Schaeffler India supplies high-speed precision bearings for EVs and wind turbines, enhancing efficiency. Grindwell Norton produces super abrasives used in solar panel manufacturing and turbine blade finishing.

The ₹11.11 lakh crore ($134 billion) infrastructure budget for 2024-25, along with projects like Bharatmala (34,800 km highways) and the ₹2.05 lakh crore Smart Cities Mission, is driving industrial growth. This surge in construction, transportation, and urban development will increase demand for abrasives and bearings, positively impacting the stocks of leading companies in the sector.

What are the Risks of Investing in Abrasives & Bearings Company Stocks?

Investing in Abrasives & Bearings company stocks is risky for 3 main reasons. The reasons are raw material prices, strict regulatory policies and economic slowdown.

• Raw material prices: It directly impacts production costs and profitability for abrasives and bearings companies. In 2021, global silicon carbide prices surged by over 30% due to supply chain disruptions and rising energy costs. This affected companies like Grindwell Norton, which had to adjust pricing strategies to maintain margins.
  
• Strict regulatory policies: It can impact production costs and global market access for abrasives and bearings companies. For example, in 2021, India tightened emission norms under the “National Clean Air Programme (NCAP),” increasing compliance costs for manufacturers using silicon carbide and aluminum oxide, key materials in abrasives.
  
• Economic slowdowns: During COVID-19 in 2020, India’s automobile production dropped by 18%, lowering demand for these components. Companies like SKF India and NRB Bearings saw revenue declines as factories operated at lower capacity. Stock prices also fell due to weaker market sentiment.

Despite risks like raw material volatility and regulatory challenges, abrasives and bearings companies benefit from strong industrial demand. Growth in automotive, infrastructure, and manufacturing supports long-term potential. Companies focusing on innovation and global expansion can sustain profitability. This makes the sector a strategic yet cautious investment opportunity.

When Abrasives & Bearings Companies Stock Prices Go Up?

Abrasives & Bearings Companies stock prices go up mainly due to 3 main reasons. The reasons are economic growth, stable raw material prices and strong industrial demand.

• Economic Growth: India’s economic growth and infrastructure projects are driving demand for abrasives and bearings. The Bharatmala Pariyojana (₹5.35 lakh crore) has increased the need for construction equipment and automotive components. This growth benefits companies like SKF India, Schaeffler India, and Grindwell Norton. Expanding industrial activity continues to fuel demand.
• ​Stable  raw material prices:  Raw material such as steel and silicon carbide, can enhance profit margins for abrasives and bearings manufacturers. For instance, in 2023, the steel price index declined by 21% year-on-year, alleviating production costs for companies in this sector. These favorable raw material cost trends can positively impact the profitability of companies like Grindwell Norton and Carborundum Universal.​
• Strong industrial demand: Strong demand in automotive, aerospace, and construction drives sales for abrasives and bearings companies. India’s Automotive Bearing Market is expected to grow at a 7% CAGR (2023-2028) due to rising vehicle production. Infrastructure projects like Smart Cities Mission and Bharatmala boost demand for construction machinery. 

With rising industrial activity, stable raw material prices, and strong economic growth, abrasives and bearings companies are well-positioned for sustained profitability. As infrastructure and manufacturing sectors expand, demand for these essential components will continue to drive stock performance. Investors focusing on long-term growth can benefit from this sector’s steady upward trajectory.

When Abrasives & Bearings Companies Stock Prices Go Down?

Abrasives & Bearings Companies stock prices go down mainly due to 3 main reasons. The reasons are economic slowdowns, regulatory policies and supply chain disruptions. 

• Economic Slowdowns: Recessions or reduced industrial activity lower demand, impacting revenues and stock prices.Recent example is COVID-19 pandemic in 2020 where India’s automobile production dropped by 18%, affecting bearings and abrasives demand.

• Regulatory Policies: Stricter regulatory and environmental policies increase compliance costs for abrasives and bearings companies. Import duties, pollution norms, and carbon regulations can impact production expenses and profitability. For example, India’s stricter emission norms forced manufacturers to upgrade technology, raising operational costs. Such policies can affect companies.

• Supply Chain Disruptions: The 2021 global semiconductor shortage disrupted the automotive and bearing industries, reducing vehicle production by 11.3 million units worldwide. This led to an estimated $210 billion revenue loss in the automotive sector, affecting demand for bearings. Companies like NRB Bearings and SKF India faced lower orders and operational challenges.

While these risks may create short-term setbacks, companies that adapt through innovation and cost management can sustain long-term growth. Investors should monitor economic trends and industry regulations to navigate these challenges effectively.

How Abrasives & Bearings Stocks Perform in Different Market Cycles?

Abrasives and bearings stocks are cyclical, closely tied to industrial activity. During economic expansion, both sectors perform well. For instance, in 2021, global demand for abrasives grew by 8%, and the bearings market saw a 6-7% increase due to higher automotive production and manufacturing demand. Companies like SKF and Saint-Gobain reported strong earnings during this period.

However, during recessions, both sectors slow down. In 2020, the global bearings market contracted by 9%, while abrasives sales dropped by 6-7% due to reduced industrial and construction activity. As the economy recovers, these sectors rebound, with abrasives growing by 10% and bearings expanding by 5-6% in 2021-2022, driven by the recovery in manufacturing and infrastructure.