Mehabe score: 2 G Factor: 5 Piotski Score: 5 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 5.
Description
Munjal Showa is engaged in the business of operates as an ancilliary and manufactures auto components for the two-wheeler and four-wheeler industry, primary products being shock absorbers, struts and window balancers.Site:MUNJALSHOW
Market Cap:
Rs 666 cr
Price:
167.0
Trading pe:
21.7x
Book-value:
154/share
Div yield:
2.70 %
Earning yield:
5.71%
Face-value:
2.00/share
52week high:
176.45
52week low:
94.80
Technical Analysis
Stock trades at 167.0, above its 50dma 151.07. It also trades above its 200dma 140.73. The stock remains bullish on techicals
The 52 week high is at 176.45 and the 52week low is at 94.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.08 times its book value
– has been maintaining a healthy dividend payout of 31.43%
Weakness
– The company has delivered a poor sales growth of -4.75% over past five years.
– has a low return on equity of 8.53% for last 3 years.
-Earnings include an other income of Rs.28.71 Cr.
Competition
– The industry trades at a mean P/E of 31.9x. WABCO India trades at the industry’s max P/E of 126.04x. MUNJALSHOW trades at a P/E of 21.7x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. MUNJALSHOW has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 2.4%. The max 1- month return was given by Minda Industries: a return of 13.28 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 316.47 cr compared to Rs 250.02 cr for period ended Mar 2020, a rise of 26.6%
Operating Profits reported at Rs 7.24 cr for period ended Mar 2021 vis-vis 10.38 for period ended Mar 2020 .
Operating Margins contracted -186.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.46 compared to Rs 4.32 for previous quarter ended Dec 2020 and Rs 2.6 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1085.0 cr for period ended Mar 2021 vis-vis sales of Rs 1288.0 cr for the period ended Mar 2020, a fall of 18.7%. The 3 year sales cagr stood at -11.8%.
Operating margins shrank to 2.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 26.0 cr for period ended Mar 2021 vis-vis sales of Rs 43.0 cr for the period ended Mar 2020, falling 65.4%.
Company reported a poor Net Profit CAGR of -30.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 67% on a 1 Year basis vis-vis a return of -11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -28% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -33% vis-vis a compounded profit growth of -21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.39% vis-vis 0.39% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.57% vis-vis 34.57% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.08 times its book value
– has been maintaining a healthy dividend payout of 31.43% – The company has delivered a poor sales growth of -4.75% over past five years.
– has a low return on equity of 8.53% for last 3 years.
-Earnings include an other income of Rs.28.71 Cr.
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 151.07 and is trading at 167.0, thus bullish price action wise.
