Mehabe score: 5 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
Menon Pistons Ltd is in the business of manufacturing of auto components such as Pistons, Gudgeon Pins, Rings, Auto shafts for commercial vehicles, tractors, passenger cars and heavy duty stationery engines.#
Main Points
Revenue Breakup
Presently, Piston/ Piston assemblies account for 91% of revenues and Gudgeon Pins/ auto shafts account for the rest 9%.#
The company earns ~80% of revenues from sales to OEMs and the rest 20% from aftermarket sales where it fetches better margins.#Site:531727Main Symbol:MENNPIS
Stock trades at 28.8, above its 50dma 24.07. It also trades above its 200dma 19.12. The stock remains bullish on techicals
The 52 week high is at 31.60 and the 52week low is at 10.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 49.09%
Weakness
– The company has delivered a poor sales growth of 1.01% over past five years.
– has a low return on equity of 10.15% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.0x. WABCO India trades at the industry’s max P/E of 128.79x. 531727 trades at a P/E of 16.4x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 531727 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 1.5%. The max 1- month return was given by Endurance Tech.: a return of 10.53 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 45.1 cr compared to Rs 22.95 cr for period ended Mar 2020, a rise of 96.5%
Operating Profits reported at Rs 5.82 cr for period ended Mar 2021 vis-vis 1.02 for period ended Mar 2020 .
Operating Margins expanded 846.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.63 compared to Rs 0.45 for previous quarter ended Dec 2020 and Rs -0.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 137.0 cr for period ended Mar 2021 vis-vis sales of Rs 118.0 cr for the period ended Mar 2020, a healthy growth of 13.9%. The 3 year sales cagr stood at -2.1%.
Operating margins expanded to 12.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 9.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, rising 55.6%.
Company recorded a Net Profit CAGR of 8.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 115% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of -2% over the last 3 Years. – The compounded profit growth on a TTM basis is 104% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.21% vis-vis 25.21% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 49.09% – The company has delivered a poor sales growth of 1.01% over past five years.
– has a low return on equity of 10.15% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 24.07 and is trading at 28.8, thus bullish price action wise.
