Key Events This Week
09 Feb: Stock opens at ₹78.03 with a 4.50% gain amid positive market sentiment
10 Feb: Upgrade to Sell rating on technical improvements and valuation appeal
12 Feb: Reports strong quarterly results with record revenue and profit
13 Feb: Stock closes at ₹85.03 after a volatile session, reflecting margin expansion and turnaround
Monday, 9 February 2026: Strong Start Amid Positive Market Momentum
Munjal Auto Industries began the week on a strong note, closing at ₹78.03, up 4.50% from the previous Friday’s close of ₹74.67. This gain outpaced the Sensex’s 1.04% rise to 37,113.23, signalling early investor interest. The volume of 5,789 shares traded indicated moderate participation as the stock reacted positively to improving technical signals and sectoral optimism.
Tuesday, 10 February 2026: Upgrade to Sell Rating Spurs Confidence
The stock gained further momentum on 10 February, closing at ₹79.17, a 1.46% increase. This followed MarketsMOJO’s upgrade of Munjal Auto Industries Ltd’s rating from 'Strong Sell' to 'Sell' based on technical improvements and valuation appeal. The Mojo Score improved to 34.0, reflecting cautious optimism despite ongoing financial challenges such as declining profits and subdued return on capital employed.
The upgrade was underpinned by a shift in technical momentum from strongly bearish to mildly bearish, with indicators like MACD and Bollinger Bands signalling reduced selling pressure. The stock’s valuation, trading at an Enterprise Value to Capital Employed ratio of 1.5, was considered attractive relative to peers, supporting the less severe sell rating.
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Wednesday, 11 February 2026: Steady Gains Amid Mixed Technical Signals
The stock continued its upward trajectory on 11 February, closing at ₹79.69, a 0.66% gain. Despite the modest increase, technical indicators remained mixed. The MACD was still bearish on the weekly chart, while the RSI hovered in neutral territory, suggesting neither overbought nor oversold conditions. Bollinger Bands indicated mildly bearish volatility, and moving averages suggested tentative resistance levels near the current price.
Volume surged to 10,161 shares, reflecting growing market interest. The stock’s short-term outperformance relative to the Sensex, which rose only 0.13%, highlighted its resilience amid broader market caution.
Thursday, 12 February 2026: Record Quarterly Results Drive Sharp Rally
Munjal Auto Industries posted its highest quarterly revenue and profit in recent years on 12 February, triggering a sharp 11.97% surge to ₹89.23. Net sales reached a record ₹605.81 crores, while profit after tax soared to ₹14.67 crores, marking a significant turnaround from previous quarters. Operating profit margin expanded to 6.94%, the best in recent periods, and profit before tax excluding other income stood at ₹14.68 crores.
This financial turnaround was reflected in an improved financial trend score, rising from -12 three months prior to +10, signalling stabilisation and growth. Despite these gains, concerns remained over rising interest costs, which increased 21.02% to ₹20.09 crores, and a low return on capital employed of 9.72% for the half-year period.
Friday, 13 February 2026: Profit-Taking and Margin Expansion Reflected in Volatile Session
The stock closed the week at ₹85.03, down 4.71% from the previous day’s close, on heavy volume of 22,989 shares. Intraday volatility was notable, with a high of ₹92.00 and a low of ₹77.39. The decline followed the strong rally on Thursday but did not erase the week’s overall gains. Investors appeared to digest the mixed signals of margin expansion and rising leverage, with the debt-to-equity ratio climbing to 0.92 times.
Despite the pullback, the stock outperformed the Sensex, which fell 1.40% to 36,532.48. The company’s improved quarterly performance and cautious upgrade have positioned it for potential recovery, though challenges remain in capital efficiency and interest expense management.
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Weekly Price Performance: Munjal Auto Industries vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.78.03 | +4.50% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.79.17 | +1.46% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.79.69 | +0.66% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.89.23 | +11.97% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.85.03 | -4.71% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Munjal Auto Industries demonstrated a robust weekly gain of 13.87%, significantly outperforming the Sensex’s 0.54% decline. The upgrade from 'Strong Sell' to 'Sell' on 10 February reflected improving technical momentum and attractive valuation metrics. The company’s December quarter results revealed record revenue and profit, with operating margin expansion to 6.94% and a positive financial trend score shift from -12 to +10.
Cautionary Notes: Despite the turnaround, challenges persist. Interest expenses rose by 21.02%, increasing financial leverage as reflected in a debt-to-equity ratio of 0.92 times. Return on capital employed remains subdued at 9.72%, indicating limited capital efficiency. Technical indicators such as MACD and KST remain bearish, and the stock experienced a volatile session on 13 February with a notable pullback.
Market Context: The stock’s short-term outperformance contrasts with its longer-term underperformance relative to the Sensex, with a one-year return of -12.56% versus the Sensex’s +7.97%. Sectoral headwinds in auto components continue to weigh, though the company’s operational resilience and valuation discount offer some support.
Conclusion
Munjal Auto Industries Ltd’s week was marked by a strong price rally driven by a combination of technical momentum improvement, a cautious upgrade in rating, and a significant quarterly financial turnaround. While the stock’s 13.87% gain and record quarterly results signal a positive inflection, investors should remain mindful of ongoing margin pressures, rising interest costs, and subdued capital returns. The mixed technical signals and volatility towards week’s end suggest a consolidation phase, with further developments needed to confirm a sustained recovery. Overall, the week’s events highlight a company in transition, balancing operational progress against financial and market challenges.
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