Munjal Showa Ltd - Stock Valuation and Financial Performance

BSE: 520043 | NSE: MUNJALSHOW | Auto Ancillary | Small Cap

Munjal Showa Share Price

162.65 -0.35 -0.21%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Munjal Showa

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Munjal Showa stock performance -

mw4me loader
P/E Ratio (SA):
14.79
Market Cap:
652.7 Cr.
52-wk low:
83.4
52-wk high:
211

Is Munjal Showa Ltd an attractive stock to invest in?

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.

10 Year X-Ray of Munjal Showa:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Munjal Showa Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 20.9%18.6%13.6%11.3%13%8.5%5.4%3.5%1.3%3.6%-
Value Creation
Index
0.50.30.0-0.2-0.1-0.4-0.6-0.8-0.9-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,5981,6431,5021,4601,5811,6691,2881,0851,0601,2411,177
Sales YoY Gr.-2.8%-8.6%-2.8%8.3%5.6%-22.8%-15.8%-2.3%17%-
Adj EPS 17.317.714.613.517.512.58.35.525.711
YoY Gr.-2.4%-17.5%-7.2%29.5%-29%-33.1%-34.2%-64.2%192.9%-
BVPS (₹) 89102.7113.2128.2142.4152.7158.2160.4159.4162.8164.1
Adj Net
Profit
69.170.858.454.270.149.833.321.97.922.944
Cash Flow from Ops. 55.155.56583.596.34165.7-17.529.96.4-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -2.8%-4.7%-1.3%17%
Adj EPS -11.5%-20%-11.7%192.9%
BVPS6.9%2.7%1%2.2%
Share Price 7% -0.4% 5% 93.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
2118.513.511.2138.45.43.41.23.66.8
Op. Profit
Mgn %
6.77.77.56.87.25.452.20.82.52.1
Net Profit
Mgn %
4.34.33.93.74.432.620.71.93.8
Debt to
Equity
0000000000-
Working Cap
Days
5664737785869711212110486
Cash Conv.
Cycle
513222424263345493962

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 6.80%

Sales growth has been subdued in last 3 years -1.25%

Net Profit has been subdued in last 3 years -11.67%

Sales growth is not so good in last 4 quarters at -4.78%

Latest Financials - Munjal Showa Ltd.

Standalone Consolidated
TTM EPS (₹) 11 -
TTM Sales (₹ Cr.) 1,177 -
BVPS (₹.) 164.1 -
Reserves (₹ Cr.) 648 -
P/BV 0.99 -
PE 14.79 -
From the Market
52 Week Low / High (₹) 83.40 / 211.00
All Time Low / High (₹) 1.40 / 312.00
Market Cap (₹ Cr.) 653
Equity (₹ Cr.) 8
Face Value (₹) 2
Industry PE 46.3

Management X-Ray of Munjal Showa:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Munjal Showa

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,5981,6431,5021,4601,5811,6691,2881,0851,0601,241
Operating Expenses 1,4931,5161,3901,3601,4681,5811,2331,0611,0521,210
Manufacturing Costs197194173155166173131108102118
Material Costs1,1891,2121,0981,0721,1621,253951814821966
Employee Cost 8892101115125132121123112108
Other Costs 19171919152230161618
Operating Profit 105127112100113885524830
Operating Profit Margin (%) 6.6%7.7%7.5%6.8%7.2%5.3%4.3%2.2%0.8%2.4%
Other Income 68518212325241820
Interest 3100001000
Depreciation 28292929282620161212
Exceptional Items 0100000004
Profit Before Tax 8010688881058658311442
Tax 103127272823165210
Profit After Tax 70766161786343261232
PAT Margin (%) 4.4%4.6%4.1%4.2%4.9%3.7%3.3%2.4%1.1%2.6%
Adjusted EPS (₹)17.418.915.315.219.415.710.66.53.08.0
Dividend Payout Ratio (%)20%21%26%26%23%29%42%69%148%56%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 356411453513570611633641637651
Share Capital 8888888888
Reserves 348403445505562603625633629643
Minority Interest0000000000
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables166155133135185144101126114129
Others Liabilities 52472458716039353940
Total Liabilities 574613610706825815772803790820

Fixed Assets

Gross Block450460469206213224246234224226
Accumulated Depreciation2172482722856811011009997
Net Fixed Assets233211197178157143145134125129
CWIP 1233132162
Investments 306882171244243319292307313
Inventories49676362638073887373
Trade Receivables177203199194245199140196170193
Cash Equivalents 162262042411186
Others Assets6961639295104908092103
Total Assets 574613610706825815772803790820

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 55556583964166-18306
PBT 8010688881058658311442
Adjustment 272125111097-5-4-8
Changes in Working Capital -33-43-101811-1918-3727-24
Tax Paid -19-28-38-34-30-35-18-7-7-4
Cash Flow From Investing Activity -18-48-26-79-633-8243-50
Capex -13-15-17-8-6-14-20-5-8-12
Net Investments -8-35-10-76-5817-634704
Others 3215111128
Cash Flow From Financing Activity -40-22-380-19-22-22-18-18-18
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -21000000000
Interest Paid -5-600000000
Dividend Paid -12-14-320-16-18-18-18-18-18
Others -2-2-60-3-4-4000
Net Cash Flow -2-14141423-3977-11
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)21.1619.7214.1612.5814.3210.616.844.11.94.95
ROCE (%)24.4227.8920.4118.2619.5414.549.54.982.216.58
Asset Turnover Ratio3.143.012.672.422.112.041.621.381.331.54
PAT to CFO Conversion(x)0.790.721.071.361.230.651.53-0.692.50.19
Working Capital Days
Receivable Days34394545504948576354
Inventory Days9121414141622272822
Payable Days49484846504847515346

Munjal Showa Ltd Stock News

Munjal Showa Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Munjal Showa on 28-Mar-2024 16:01 is ₹162.7.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Munjal Showa stood at ₹652.7.
The latest P/E ratio of Munjal Showa as of 28-Mar-2024 16:01 is 14.79.
The latest P/B ratio of Munjal Showa as of 28-Mar-2024 16:01 is 0.99.
The 52-week high of Munjal Showa is ₹211.0 and the 52-week low is ₹83.40.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Munjal Showa is ₹1,177 ( Cr.) .

About Munjal Showa Ltd

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 company’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 Group’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:

  • Front Fork for two-wheelers
  • Front/Rear Cushion for two-wheelers
  • Front/Rear Strut for Maruti
  • Open Stay for Maruti
  • Front/Rear Strut for Honda Siel.

Awards/Achievements

  • The company is ISO 9002, 9001, 9000, 14001, TS-16949 certified.
  • In Sep. 2001 won 1st prize in CII-QC. Circle competition at Chandigarh.
  • In Oct. 2001 won 2nd prize in CII-QC. Circle competition at Delhi.
  • In 2002, rated as the best company by Honda Siel in quality improvement activity.
  • In 2003, won 1st prize in CCQC’03.
  • Munjal Showa has been assigned API+ rating for a Rs 60 million commercial paper programme by CRISIL.

Recent developments

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 company’s position in the industry and reduced cycle time for a development of new models.

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