ScoreWhy is Menon Bearings Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.63 times
2
Poor long term growth as Net Sales has grown by an annual rate of 13.05% and Operating profit at 1.47% over the last 5 years
3
Flat results in Dec 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 8.46 times
- DEBT-EQUITY RATIO(HY) Highest at 0.33 times
- INTEREST(Q) Highest at Rs 1.34 cr
4
With ROCE of 17.6, it has a Very Expensive valuation with a 4 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 4.91%, its profits have risen by 29.8% ; the PEG ratio of the company is 0.8
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Menon Bearings should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Menon Bearings for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Menon Bearings
4.45%
0.12
39.70%
Sensex
8.65%
0.77
11.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.05%
EBIT Growth (5y)
1.47%
EBIT to Interest (avg)
9.72
Debt to EBITDA (avg)
0.88
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
1.12
Tax Ratio
24.93%
Dividend Payout Ratio
51.77%
Pledged Shares
0
Institutional Holding
0.38%
ROCE (avg)
20.44%
ROE (avg)
16.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
38
Price to Book Value
4.60
EV to EBIT
19.96
EV to EBITDA
16.21
EV to Capital Employed
4.00
EV to Sales
2.83
PEG Ratio
0.79
Dividend Yield
1.53%
ROCE (Latest)
17.59%
ROE (Latest)
17.16%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET SALES(Q)
Highest at Rs 76.91 cr
PBDIT(Q)
Highest at Rs 14.46 cr.
PBT LESS OI(Q)
Highest at Rs 10.74 cr.
PAT(Q)
Highest at Rs 9.25 cr.
EPS(Q)
Highest at Rs 1.65
-10What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.46 times
DEBT-EQUITY RATIO(HY)
Highest at 0.33 times
INTEREST(Q)
Highest at Rs 1.34 cr
Loading Valuation Snapshot...
Here's what is working for Menon Bearings
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 10.74 cr has Grown at 45.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 7.38 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 76.91 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 76.91 cr has Grown at 22.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 62.98 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 14.46 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 10.74 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 9.25 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 9.25 cr has Grown at 35.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.83 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.65
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Menon Bearings
Inventory Turnover Ratio- Half Yearly
Lowest at 8.46 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest - Quarterly
Highest at Rs 1.34 cr
in the last five quarters and Increased by 12.61 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.33 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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