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Check Before You Invest : Menon Bearings Ltd

BSE: 523828 NSE: MENONBE ISIN: INE071D01033
  |   Sector:  Automobiles   |   Industry:  Bearings

Snapshot

Q.1 Which industry/sub-sector does Menon Bearings Ltd belong to?
Menon Bearings Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.
Q.2 Is Menon Bearings Ltd a good quality company?
Menon Bearings Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Menon Bearings Ltd undervalued or overvalued?
Menon Bearings Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Menon Bearings Ltd a good buy now?
Menon Bearings Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Menon Bearings Ltd?
Menon Bearings Ltd revenue growth is -19.7% for FY-2025 , which is below its 5 year CAGR of 3.7% , indicating slower growth.
Q.2 Gross Profit margin of Menon Bearings Ltd?
Menon Bearings Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.6% for FY-2025 , which is below its 5 year median of 20.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Menon Bearings Ltd?
Menon Bearings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.57% for FY-2025 , which is below its 5 year median of 21.36% indicating decreasing margins.
Q.4 Net Profit Margin of Menon Bearings Ltd?
Menon Bearings Ltd Net Profit Margin is 12.06% for FY-2025 , is below with its 5 year median of 12.42%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 18.6 20.5
Operating Profit Margin 19.57 21.36
Net Profit Margin 12.06 12.42
Q.5 Return on Asset of Menon Bearings Ltd?
Menon Bearings Ltd Return on Asset is 10.36%, which is below its 5 year historical median of 13.22%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Menon Bearings Ltd?
Menon Bearings Ltd Return on equity is 14.48% for FY-2025 , which is below its historical median of 20.29%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Menon Bearings Ltd?
Menon Bearings Ltd Return on capital employed is 17.36% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Menon Bearings Ltd?
Menon Bearings Ltd Cash conversion cycle is 113 days, above its historical median of 102 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.86 1.07
ROE 14.48 20.29
ROCE 17.36 22.99
Cash Conversion Cycle 113 days 102 days
Q.9 Debt to Equity ratio of Menon Bearings Ltd?
Menon Bearings Ltd Debt-to-Equity ratio is 0.22 , which is above with the industry average of 0.07 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Menon Bearings Ltd?
Menon Bearings Ltd Debt to cash flow from operations is 0.65 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Menon Bearings Ltd?
Promoters hold 68.44% of the Menon Bearings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Menon Bearings Ltd vs industry peers?
Menon Bearings Ltd revenue CAGR is 3.74% , compared to the industry median CAGR of 7.70% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 167.1 150.2
Gross Profit 31.1 16.5
Operating Profit 33 15
Net Profit 20 11
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.86 0.9
ROE 14.48 15.26
ROCE 17.36 17.78
Cash Conversion Cycle (days) 112.59 104

Valuation & price assessment

Q.1 Stock return of Menon Bearings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.2% 18.5% 6.8% 31%
Q.3 Valuation ratios of Menon Bearings Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 27.65 20.71 40.94
Price to Book 5.08 2.65 2.91
Price to Sales 3.69 2.04 2.25
EV to EBITDA 17.79 9.75 13.82

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