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Menon Pistons Ltd. Stock Analysis

Small Cap
Evaluated by 306 users | BSE: 531727 | NSE: |
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Menon Pistons Ltd. ( MPL ) ventured into the manufacture of pistons in 1971 without any collaboration or technical assistance of any piston manufacturer. Menon Pistons’s  manufacturing plant was set up at the industrial estate in Shiroli, Kolhapur, a small industrial city, south...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 18%16.68%8.51%5.25%9.25%7.35%10.75%9.49%12.86%5.75%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 149165153142144130133146156118
Y-o-Y Gr. Rt.-10.4%-7.4%-7%1.7%-9.7%1.9%10%6.9%-24.6%
Adjusted EPS (Rs.) 1.711.960.850.371.10.821.461.371.960.86
Y-o-Y Gr. Rt.-14.6%-56.6%-56.5%197.3%-25.5%78.1%-6.2%43.1%-56.1%
Book Value per Share (Rs.) 8.4910.0510.7110.8911.4911.8313.2714.0115.2414.62
Adjusted Net Profit 8.7104.41.95.64.27.47104.4
Net Op. Cash Flow (Rs. Cr.) 12.715.7-0.15.83.411.451.211.415.4
Debt to Cash Flow from Ops 1.851.78-371.625.067.41.472.87.180.220.26
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Menon Pistons Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -2.6%-4%-3.9%-24.6%
Adjusted EPS -7.4%-4.8%-16.2%-56.1%
Book Value per Share 6.24.93.3-4.1
Share Price 3.3% -0.8% -17.8% -8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.520.948.153.419.76.9911.5510.0113.395.76
Operating Profit Margin (%) 11.4212.379.056.2310.088.7411.2610.7811.929.11
Net Profit Margin (%) 5.836.072.851.343.873.225.594.776.43.72
Debt to Equity 0.540.540.710.520.420.280.210.120.030.05
Working Capital Days 107112130152161170157165163195
Cash Conversion Cycle 54394659707682105113145
Entity Percentage Holding
Promoters 74.37%
Non-Institutions 25.63%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Menon Pistons Ltd.'s performance infers:

Menon Pistons Ltd. earnings have declined by -4.8%, whereas share price has depreciated -0.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Menon Pistons Ltd. share prices over the last 10 years. Here is what we found out:

Menon Pistons Ltd. share price has depreciated 1.3% annually over the past ten years.

Menon Pistons Ltd. ( MPL ) ventured into the manufacture of pistons in 1971 without any collaboration or technical assistance of any piston manufacturer. Menon Pistons’s  manufacturing plant was set up at the industrial estate in Shiroli, Kolhapur, a small industrial city, south east of Mumbai & delivered the First Ring Carrier piston to the Indian diesel engine industry in 1971.

Menon Group, the multi-product, high end critical auto components group with a turnover

Menon Pistons Ltd. ( MPL ) ventured into the manufacture of pistons in 1971 without any collaboration or technical assistance of any piston manufacturer. Menon Pistons’s  manufacturing plant was set up at the industrial estate in Shiroli, Kolhapur, a small industrial city, south east of Mumbai & delivered the First Ring Carrier piston to the Indian diesel engine industry in 1971.

Menon Group, the multi-product, high end critical auto components group with a turnover exceeding Rs 300 crore, & globally positioned with business activities spanning 24 countries around the globe exporting 35 % of its production. The Menon Group's historic commitment to quality and customer service, strong corporate values, disciplined & professional management systems, emphasis on trust in business relations, & our ability to meet special needs is recognized the word over.

In the year 1985 a second unit was started in Sangli, yet again a small town 60 km away from Kolhapur to manufacture Gudgeon Pins & Pistons for stationary & industrial applications. In the year 1996 a third unit was added in Shiroli industrial estate exclusively for the manufacture of small pistons to industrial applications & passenger cars. Currently this plant concentrates on the manufacturing of pistons for passenger car as an “ Exclusive & Single source “ supplier to Maruti Suzuki Ltd, for their prize vehicle “ Swift ”

The company has kept pace with the growing trends by virtue of streamlining quality systems, development of quality culture, adoption of latest technology & equipment. Products of Menon Pistons enjoy a high degree of customer satisfaction & value for the money & has been the choice of discerning customers as most cost effective supplier.

Menon Pistons Ltd., manufactures aluminium alloy pistons, piston pins, and piston rings for passenger cars, heavy and light commercial vehicles, heavy duty diesel engines for power generation and earth movers, compressors, etc.

Product range of the company includes:

MPL's product range boasts of piston assemblies for diverse array of high tech features catering to the wide variety of applications such as :

  • Heavy Duty Diesel Engines for Power Generation / Off Highway Vehicles/Gas Engines
  • Heavy/Medium/Light Commercial Vehicles with Diesel Engines.
  • Passenger Car (Diesel & Gasoline) Engines
  • Bi-wheeler (4 Stroke) / Small Engine Applications

Clients:

  • Tata
  • Suzuki
  • Cummins
  • Greaves
  • New Holland
  • Eicher
  • Kirloskar
  • Arrow Engine Company

Milestones:

  • 1969 - Company Incorporated.
  • 1971 - Developed Ring Carrier Piston (Alfin Piston) Fist Time in India for Cummins which was import substitution.
  • 1978 -100,000Th Piston Produced for Cummins alone.
  • 1982 - Technology upgradation Agreement with Sakura Kogyo Co.Ltd, Japan, for manufacture of Pistons.
  • 1985 -Started Gudgeon Pin Production in Plant 2 – Sangli (Maharashtra).
  • 1985 -First Export of Pistons to Russia. Upto 1991 supplied pistons to AVTO LADA & 40000 large dia pistons to tractor company in USSR.
  • 1985 -ISO 9002 Certification by BVQI, UK.
  • 1994 -Best Vendor Performance Award by Maruti Udyog Ltd.
  • 1995 -“Ship to Use” Status awarded by Cummins India Ltd.
  • 1996 - Company became Public Limited.
  • 1996 -Technical Tie up with M/s. Izumi Industries Ltd, Japan, one of the leading piston manufacturers in the world.
  • 2000 -QS 9000 certification by TUV Suddeutschland, Germany.
  • 2001 -Reached a total supply of 1.5 Million Pistons to Cummins.
  • 2004 -Re-certification of QS 9000 by TUV Suddeutschland, Germany.
  • 2005 -TS 16949 certification by TUV Suddeutschland, Germany.
  • 2006 -Signed Technical License Agreement with M/s. Dong Yang Piston Co Ltd, South Korea.
  • 2006- First surveillance audit of TS 16949 successfully completed.
  • 2007 -Development of cooled gallery piston for heavy duty application.

Achievements/ recognition:

  • The First Company in India to develop Ring Carrier Pistons
  • Best Vendor Award from Maruti Udyog Ltd in the year 1994-95
  • “Ship -to - Use” Status by Cummins India Ltd since 1995
  • Faster Development Award from Kirloskar Oil Engines Ltd
  • ISO/TS: 16949 Certified by TUV Suddentschland in 2005
  • “Outstanding Supplier For Excellent Performance” award from Cummins Group in July 2006
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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