Menon Bearings Ltd (MENONBE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Remsons Ind.

Veljan Denison

Munjal Showa

Pradeep Metals

Munjal Auto Inds

Menon Bearings

Z F Steering

Automotive Stamp

Hind.Composites

Kinetic Engg.

CLN Energy

Why is Menon Bearings Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -11.73% of over the last 5 years

Negative results in Sep 25

INTEREST(Latest six months) At Rs 2.35 cr has Grown at 34.29%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.85 times
DEBTORS TURNOVER RATIO(HY) Lowest at 0.37 times

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

Below par performance in long term as well as near term

Along with generating -14.77% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Menon Bearings for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Menon Bearings

-13.97%

-0.39

36.03%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.00%

EBIT Growth (5y)

-11.73%

EBIT to Interest (avg)

10.16

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.24

Tax Ratio

24.88%

Dividend Payout Ratio

51.77%

Pledged Shares

Institutional Holding

0.41%

ROCE (avg)

23.12%

ROE (avg)

16.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.72

EV to EBIT

18.54

EV to EBITDA

14.69

EV to Capital Employed

3.26

EV to Sales

2.48

PEG Ratio

9.26

Dividend Yield

1.89%

ROCE (Latest)

17.59%

ROE (Latest)

17.16%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 209.60 cr

-12What is not working for the Company

INTEREST(Latest six months)

At Rs 2.35 cr has Grown at 34.29%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.85 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.37 times

PBT LESS OI(Q)

At Rs 6.26 cr has Fallen at -19.9% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.49 times

OPERATING PROFIT TO NET SALES (Q)

Lowest at 15.65%

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Here's what is working for Menon Bearings

Cash and Cash Equivalents - Half Yearly

Highest at Rs 209.60 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Menon Bearings

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.26 cr has Fallen at -19.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 7.82 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Latest six months

At Rs 2.35 cr has Grown at 34.29%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 0.85 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 0.37 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin - Quarterly

Lowest at 15.65%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Debt-Equity Ratio - Half Yearly

Highest at 1.49 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 2.38 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income