High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
Balance Sheet: Strong Balance Sheet.
Technicals: Bullish SharesGuru indicator.
Growth: Good revenue growth. With 36.6% growth over past three years, the company is going strong.
Profitability: Recent profitability of 13% is a good sign.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Past Returns: In past three years, the stock has provided 4% return compared to 8.9% by NIFTY 50.
Size: It is a small market cap company and can be volatile.
Smart Money: Smart money is losing interest in the stock.
Valuation | |
|---|---|
| Market Cap | 831.69 Cr |
| Price/Earnings (Trailing) | 21.76 |
| Price/Sales (Trailing) | 2.77 |
| EV/EBITDA | 13.29 |
| Price/Free Cashflow | -229.84 |
| MarketCap/EBT | 16.58 |
| Enterprise Value | 866.51 Cr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 300.24 Cr |
| Rev. Growth (Yr) | 34.4% |
| Earnings (TTM) | 38.25 Cr |
| Earnings Growth (Yr) | 108.6% |
Profitability | |
|---|---|
| Operating Margin | 17% |
| EBT Margin | 17% |
| Return on Equity | 20.64% |
| Return on Assets | 14.3% |
| Free Cashflow Yield | -0.44% |
Growth & Returns | |
|---|---|
| Price Change 1W | 0.50% |
| Price Change 1M | 25.4% |
| Price Change 6M | 35% |
| Price Change 1Y | 25.7% |
| 3Y Cumulative Return | 4% |
| 5Y Cumulative Return | 17.4% |
| 7Y Cumulative Return | 9.7% |
| 10Y Cumulative Return | 11.1% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -18.23 Cr |
| Cash Flow from Operations (TTM) | 23.32 Cr |
| Cash Flow from Financing (TTM) | -12.49 Cr |
| Cash & Equivalents | 11.03 Cr |
| Free Cash Flow (TTM) | -3.62 Cr |
| Free Cash Flow/Share (TTM) | -0.65 |
Balance Sheet | |
|---|---|
| Total Assets | 267.52 Cr |
| Total Liabilities | 82.18 Cr |
| Shareholder Equity | 185.35 Cr |
| Current Assets | 139.76 Cr |
| Current Liabilities | 55.78 Cr |
| Net PPE | 119.4 Cr |
| Inventory | 30.99 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.17 |
| Debt/Equity | 0.25 |
| Interest Coverage | 8.87 |
| Interest/Cashflow Ops | 5.59 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 2 |
| Dividend Yield | 1.69% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Balance Sheet: Strong Balance Sheet.
Technicals: Bullish SharesGuru indicator.
Growth: Good revenue growth. With 36.6% growth over past three years, the company is going strong.
Profitability: Recent profitability of 13% is a good sign.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Past Returns: In past three years, the stock has provided 4% return compared to 8.9% by NIFTY 50.
Size: It is a small market cap company and can be volatile.
Smart Money: Smart money is losing interest in the stock.
Investor Care | |
|---|---|
| Dividend Yield | 1.69% |
| Dividend/Share (TTM) | 2 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 6.82 |
Financial Health | |
|---|---|
| Current Ratio | 2.51 |
| Debt/Equity | 0.25 |
Technical Indicators | |
|---|---|
| RSI (14d) | 75.89 |
| RSI (5d) | 57.24 |
| RSI (21d) | 79.46 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Sell |
| RSI5 Signal | Hold |
| RSI21 Signal | Sell |
| SMA 5 Signal | Sell |
| SMA 10 Signal | Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
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.
During the earnings conference call for Q3 and 9M FY26, management of Menon Bearings Limited provided an optimistic outlook, emphasizing strong performance in key segments. CEO Arun Aradhye highlighted a consolidated revenue of Rs.76.9 crores for Q3, marking a 32% YoY growth, with profit before tax at Rs.12.4 crores and profit after tax at Rs.9.3 crores, both up by 69%. For the nine-month period, consolidated revenue reached Rs.206.6 crores, an 18% increase, and PAT grew 34% to Rs.24.5 crores.
Management expects stable demand across OEM and export markets, projecting a continued focus on improving asset utilization and driving profitable growth, with an eye on an order book anticipated to reach Rs.295 crores for FY26 and Rs.350 crores for FY27. Key forward-looking points mentioned include:
Costs and Efficiency: The installation of a 3.8 MW rooftop solar facility is expected to reduce electricity expenses by Rs.2.25 crores annually. Process improvements and enhanced raw material yield could save an additional Rs.60 to Rs.80 lakhs per month.
Export Strategy: Exports accounted for over 36% of Q3 revenue; management anticipates maintaining this momentum despite tariffs. New customer acquisitions, including significant contracts with major U.S. clients like Allison Transmission, are expected to foster further growth.
Brakes Segment Growth: The Brakes business is projected to ramp up significantly, targeting a growth to Rs.1 crore monthly by developing customer relations and their gradual approval processes.
Future CapEx Plans: Approximately Rs.20 crores is earmarked for CapEx over the next two years, focusing on technology and enhancing product quality without substantial new facility expansions.
Product Mix: Management anticipates that revenue contributions from the Brakes and Alkop segments will increase, predicting a shift in the revenue mix with Bimetal reducing from 74% to about 65-68%, while Alkop could rise to 25-28% and Brakes contribute more as well.
Overall, the management's outlook is assertively positive, expecting sustainable growth supported by strong demand dynamics and operational efficiencies.
Question: How are you managing such strong growth in exports despite the tariff scenario?
Answer: We've initiated business with major U.S. customers, notably Allison Transmission, which adds over Rs.2.5 crores monthly. Other clients, like Federal-Mogul DRiV, also contribute. As a result, tariffs imposed by the U.S. have had little impact, and we anticipate continued export growth.
Question: With the rising copper and steel prices, how will you maintain margins?
Answer: While raw material price volatility is concerning, we are passing costs to customers through existing contracts. We're focused on product mix optimization and process efficiencies, which will help protect margins amidst inflation.
Question: Any updates on the Brakes business?
Answer: Our Brakes segment is gaining traction, with monthly revenues nearing Rs.1 crore. We're in talks with OEMs and expect significant growth as we finalize customer approvals, particularly in railways and the two-wheeler market.
Question: What is the current capacity utilization?
Answer: We operate at about 90% in Menon Bearings and 65% in aluminum casting, with the Brakes segment at 60-65%. There's ample potential for expansion without needing substantial new investments in capacity.
Question: What is the CapEx plan for this year?
Answer: We've completed Rs.15 crores in CapEx this year, with an additional Rs.20 crores planned over the next two years, focusing on technology upgrades and enhancing product value.
Question: What are your margin expectations for the next fiscal year?
Answer: We project an EBITDA margin of 21% for FY27. Currently, it stands at 20%, with improvements expected as we optimize our product mix and increase volumes.
Question: Plans regarding the expansion of Alkop capacity?
Answer: We plan to double Alkop capacity from 1,440 to 2,880 units within two years. This growth will result from increasing wallet share with existing customers while onboarding new ones.
Question: What revenue can we expect from new businesses and capabilities?
Answer: We anticipate generating Rs.50 to Rs.60 crores in incremental revenue over the next two years through new customer acquisitions and increased sales to existing clients.
These encapsulate key inquiries and their detailed responses during the Q&A session of the earnings call.
Understand Menon Bearings ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Nitin R Menon | 27.56% |
| Menon United Private Limited | 24.3% |
| Aditya Nitin Menon | 5.79% |
| Anshul Nitin Menon | 5.79% |
| Sucheta Nitin Menon | 5% |
| 1 | 2.39% |
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.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|
Comprehensive comparison against sector averages
MENONBE metrics compared to Auto
| Category | MENONBE | Auto |
|---|---|---|
| PE | 21.88 | 39.27 |
| PS | 2.79 | 2.26 |
| Growth | 23.2 % | 13.4 % |
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 - 2026)