Auto Components
Valuation | |
|---|---|
| Market Cap | 598.96 Cr |
| Price/Earnings (Trailing) | 21.95 |
| Price/Sales (Trailing) | 2.31 |
| EV/EBITDA | 12.85 |
| Price/Free Cashflow | -170.59 |
| MarketCap/EBT | 16.48 |
| Enterprise Value | 632.95 Cr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 258.73 Cr |
| Rev. Growth (Yr) | 7.5% |
| Earnings (TTM) | 27.3 Cr |
| Earnings Growth (Yr) | 1.3% |
Profitability | |
|---|---|
| Operating Margin | 14% |
| EBT Margin | 14% |
| Return on Equity | 17.16% |
| Return on Assets | 11.17% |
| Free Cashflow Yield | -0.59% |
Growth & Returns | |
|---|---|
| Price Change 1W | -3.3% |
| Price Change 1M | -8.8% |
| Price Change 6M | -11% |
| Price Change 1Y | -14% |
| 3Y Cumulative Return | 3% |
| 5Y Cumulative Return | 16.6% |
| 7Y Cumulative Return | 5% |
| 10Y Cumulative Return | 9.3% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -26.42 Cr |
| Cash Flow from Operations (TTM) | 27.05 Cr |
| Cash Flow from Financing (TTM) | -6.63 Cr |
| Cash & Equivalents | 18.08 Cr |
| Free Cash Flow (TTM) | -3.97 Cr |
| Free Cash Flow/Share (TTM) | -0.71 |
Balance Sheet | |
|---|---|
| Total Assets | 244.39 Cr |
| Total Liabilities | 85.29 Cr |
| Shareholder Equity | 159.1 Cr |
| Current Assets | 124.37 Cr |
| Current Liabilities | 48.76 Cr |
| Net PPE | 102.37 Cr |
| Inventory | 29.79 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.21 |
| Debt/Equity | 0.33 |
| Interest Coverage | 7.86 |
| Interest/Cashflow Ops | 7.69 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 2 |
| Dividend Yield | 1.87% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Summary of Menon Bearings's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated:
Management of Menon Bearings Limited provided a positive outlook during the earnings conference call for the quarter and half year ended September 30, 2025. Key highlights include:
Financial Performance: Revenues for the quarter reached INR 63.85 crore, reflecting a 7% growth year-on-year, while EBITDA was INR 11.1 crore and PAT stood at INR 6.8 crore, marking an 18% growth in H1 FY26 compared to the previous year. EBITDA margins for the half year improved to 18.8%, with PAT margins at 11.6%.
Capacity Expansion: The company is expanding its production capabilities with planned increases in several divisions:
Growth Strategies: Management emphasized entering the EV component sector, expecting contributions of 8-10% from Alkop revenue by FY27. Exports currently account for about 30% of total revenue and are projected to reach 35% by year-end, aiming for 40% by FY27, driven largely by U.S. and African markets.
Revenue Projections: Management anticipates a consolidated revenue of over INR 280-290 crore by the end of FY26, with an expected growth rate of 18-20% in the coming year, targeting EBITDA margins between 19% and 20%.
Cost Management Through Sustainability: A 570 KW solar power installation aims to cut long-term operational costs by about INR 2 crore annually. Additional roof-top solar panels with a capacity of 2.5 MW are also underway.
Export Opportunities: Specific contracts, including a deal with Allison USA for over INR 2.5 crore per month commencing January 2026 and additional orders projected at INR 3 crore, were mentioned as driving factors for future revenue growth.
This comprehensive management outlook reflects confidence in the company's growth trajectory amidst ongoing industry dynamics and planned enhancements.
Last updated:
Bhargav Buddhadev: "Given the several headwinds in the export market, especially with increasing exposure to the US, how is the business evolving, particularly with respect to tariffs?"
Arun Aradhye: "Despite confusion due to tariffs, most customers' terms allow us to minimize their impact. We are experiencing growth in the USA, with recent contracts expecting reimbursement of about 10%-12% of tariffs. Our business with Allison USA has begun, bringing in over INR2.5 crores additional per month, and we are confident this will continue without issues."
Bhargav Buddhadev: "Considering the decline in EBITDA margins in Q2 compared to prior quarters, how do you anticipate achieving a 20% EBITDA margin for FY26?"
Arun Aradhye: "We expect to surpass 20% EBITDA margin this year, mainly due to increased order book and improved pricing strategies, despite our recent margin dip from raw material cost increases that we couldn't pass on immediately. The trend indicates recovery in Q3 and Q4 as we adjust prices accordingly."
Bhargav Buddhadev: "Can you provide an update on your brakes business and the status of the dynamometer approval from railways?"
Aditya Menon: "We're facing technical delays regarding the dynamometer, impacting approvals. However, we are also expanding into the two-wheeler segment, starting with Bajaj's Pulsar bikes. By end year, we aim to supply approximately 5-6 lakh brake pads per month."
Sagar Shah: "With a target of INR300 crores sales for FY26, is the company on track considering current revenues?"
Arun Aradhye: "We're projecting revenues between INR285 crores to INR290 crores for FY26, taking into account the current order book and anticipated production ramp-up, suggesting we are on a solid path towards our sales target."
Ankur Tripathi: "What are your current order book positions for this year and next?"
Arun Aradhye: "Our current order book stands at INR290 crores for this year, with projections of INR350 crores for the next year, indicating healthy demand and expectations for growth."
Kunal Tokas: "What would be the EBITDA margin range for FY26 and FY27?"
Arun Aradhye: "For FY26, we expect EBITDA margins to range from 19% to 20%. For FY27, we conservatively project them between 20% and 21%, though we believe we can achieve higher margins as operations stabilize."
Arnav Sakhuja: "Can you quantify the expected cost savings from strategic investments and solar installations?"
Arun Aradhye: "We anticipate annual savings of around INR2 crores from the installation of rooftop solar panels, along with additional savings from operational efficiencies and advanced toolings that will improve our overall margin."
Sagar Shah: "Can you update us on the status of the thrust washer business with Allison?"
Arun Aradhye: "Commercial production has started, and we've shipped two consignments to Allison USA. We're estimating approximately INR30 crores worth of business per year from this new product line."
Understand Menon Bearings ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Nitin Ram Menon | 27.56% |
| MENON UNITED PRIVATE LIMITED | 24.3% |
| Aditya Nitin Menon | 5.79% |
| Anshul Nitin Menon | 5.79% |
| Sucheta Nitin Menon | 5% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Menon Bearings against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Comprehensive comparison against sector averages
MENONBE metrics compared to Auto
| Category | MENONBE | Auto |
|---|---|---|
| PE | 21.95 | 41.00 |
| PS | 2.31 | 2.32 |
| Growth | 14.5 % | 8.1 % |
Menon Bearings Limited engages in the manufacture and sale of auto components in India. It offers bi-metal engine bearings; bushes and thrust washers for light and heavy automobile engines, and two-wheeler engines; and compressors for refrigerators, air conditioners, etc. The company also provides high pressure aluminum die cast and machined components, such as motor end shields, compressor bearing connecting rods, engine components, gear case covers, and clutch assemblies; cylinder heads and brake parts; and engine parts, portable tools, fuel pump parts, pressure and temperature transmitter parts, explosion proof parts, and gravity die cast parts. Its products are used in various applications, including automotive engines, compressors, generators, and stationary and marine engines, as well as agricultural earthmovers and tillers. The company also exports its products to the United States, Japan, the United Kingdom, Italy, France, China, Mexico, Brazil, Belgium, etc. Menon Bearings Limited was incorporated in 1991 and is based in Kolhapur, India.
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MENONBE vs Auto (2021 - 2025)