1. Is Munjal Showa Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that Munjal Showa Ltd is a average quality company.
2. Is Munjal Showa Ltd undervalued or overvalued?
The key valuation ratios of Munjal Showa Ltd's currently when compared to its past seem to suggest it is in the Fair zone.
3. Is Munjal Showa Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Munjal Showa Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||24.5%||21.2%||20.9%||18.6%||13.6%||11.3%||13%||8.5%||5.4%||3.5%||-|
|Value Creation Index ⓘ||0.8||0.5||0.5||0.3||-0.0||-0.2||-0.1||-0.4||-0.6||-0.8||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||1.6%||1.1%||2.8%||-8.6%||-2.8%||8.3%||5.6%||-22.8%||-15.8%||-|
|Adj EPS ⓘ||17||16.1||17.3||17.7||14.6||13.5||17.5||12.4||8.3||5.5||3|
|YoY Gr. Rt. %||-||-5.3%||7.6%||2.4%||-17.5%||-7.2%||29.5%||-29%||-33%||-34.2%||-|
|BVPS (₹) ⓘ||64||75.7||89||102.7||113.2||128.2||142.4||152.7||158.2||160.4||159.4|
|Adj Net Profit ⓘ||67.8||64.2||69.1||70.8||58.4||54.2||70.1||49.8||33.3||21.9||12|
|Cash Flow from Ops. ⓘ||61.2||116||55.1||55.5||65||83.5||96.3||41||65.7||-17.5||-|
|Debt/CF from Ops. ⓘ||1.2||0.2||0||0||0||0||0||0||0||0||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||-11.8%||-17.8%||-32.1%||-34.2%|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||29.5||23||21||18.5||13.5||11.2||13||8.4||5.4||3.4||1.9|
|Op. Profit Mgn % ⓘ||8||6.7||6.7||7.7||7.5||6.8||7.2||5.4||5||2.2||0.8|
|Net Profit Mgn % ⓘ||4.4||4.1||4.3||4.3||3.9||3.7||4.4||3||2.6||2||1.2|
|Debt to Equity ⓘ||0.3||0.1||0||0||0||0||0||0||0||0||0|
|Working Cap Days ⓘ||55||55||56||64||73||77||85||86||97||112||158|
|Cash Conv. Cycle ⓘ||2||4||5||13||22||24||24||26||33||45||116|
Sales growth is good in last 4 quarters at 19.68%
Return on Equity has declined versus last 3 years average to 1.90%
Sales growth has been subdued in last 3 years -11.79%
Net Profit has been subdued in last 3 years -32.13%
|TTM EPS (₹)||3||-|
|TTM Sales (₹ Cr.)||1,060||-|
|BVPS (₹.) ⓘ||159.4||-|
|Reserves (₹ Cr.) ⓘ||629||-|
|From the Market|
|52 Week Low / High (₹)||92.70 / 168.85|
|All Time Low / High (₹)||1.40 / 312.00|
|Market Cap (₹ Cr.)||402|
|Equity (₹ Cr.)||8|
|Face Value (₹)||2|
|Industry PE ⓘ||33.9|
Munjal Showa was established in 1985, in technical and financial collaboration with Showa Corporation of Japan, the pioneering global leaders, is engaged in the manufacture of shock absorbers, Munjal Showa Limited is a member of Hero Group.
The company is one of the biggest manufacturers of shock absorbers, telescopic front forks, struts, gas struts, window balancers / gas springs in the country. Nearly 95% of companyâ€™s revenues come from the two-wheeler industry, out of which Hero Honda alone accounts for 85%. Thus, MSL is assured of a sizeable offtake at all times.
Munjal Showa Limited in Hero Groupâ€™s joint venture with Showa Corporation, designs and manufacturers shock absorbers and struts for leading two-wheelers and four-wheelers. The Munjal Showa manufacturing plant is spread over an area of 24075 sq mt in the industrial area of Gurgaon, Haryana, on the outskirts of the National Capital Territory of Delhi, India.
Munjal Showa Limited is one of the largest suppliers of shock absorbers to major auto giants in India, Japan, Germany, the United States and the United Kingdom, amongst other developed markets. The Company's products conform to the highest standards of quality, safety, comfort and dependability and are QS 9000, ISO 14001 and ISO 9001 compliant. The use of advanced technology and a team of experienced personnel have led to outstanding growth in the Company.
Munjal Showa Limited has established a strong foothold in the auto ancillaries manufacturing market and enjoys a wide patronage. Munjal Showa products serve as original equipment to a wide range of Maruti Suzuki upper-end cars and export models, Honda City car, complete range of Hero Honda motorcycles, Kawasaki Bajaj motorcycles, Kinetic Scooters and Hero range of mini-motorcycles and mopeds and Honda Motorcycles and Scooters India (Pvt) Limited. In over a decade the company's state-of-the-art shock absorbers, front fork, struts and window balancers/gas springs have become symbols of reliability and quality for popular two and four wheeled vehicles.
Better products through better technology - this is the maxim that guides the Munjal Showa team. The eco-friendly plant at Gurgaon is equipped with ultra modern facilities. A team of expert engineers from Showa, Japan, support and monitor the production of virtually zero-defect products. Our manufacturing methods are continually modified and improved upon, in order to realize goals of higher productivity. We are using the Japanese system of encompassing 5S, 3G, 3K, 3M, in the work culture thus promoting efficiency at the team level and a clean production system.
Product range of the company includes:
Munjal Showa has commissioned its third plant in the holy city of Haridwar in Uttrakhand, during the year with an initial capacity of 5 million shock absorbers per year to cater to the needs of Hero Honda Motors. The new plant is installed to avail the concessional tax structure and incentives offered by the state. The new plant has strengthened companyâ€™s position in the industry and reduced cycle time for a development of new models.