Why is Munjal Showa Ltd. ?
1
Flat results in Sep 25
- PAT(Latest six months) At Rs 11.01 cr has Grown at -21.19%
- NON-OPERATING INCOME(Q) is 85.57 % of Profit Before Tax (PBT)
2
Despite the size of the company, domestic mutual funds hold only 0.01% 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
3
Below par performance in long term as well as near term
- Along with generating -14.88% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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 Munjal Showa for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Munjal Showa
-18.8%
-0.41
36.68%
Sensex
4.28%
0.45
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
5.08%
EBIT Growth (5y)
37.76%
EBIT to Interest (avg)
7.93
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.51
Sales to Capital Employed (avg)
1.81
Tax Ratio
25.33%
Dividend Payout Ratio
62.34%
Pledged Shares
0
Institutional Holding
1.39%
ROCE (avg)
2.24%
ROE (avg)
3.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
24
Price to Book Value
0.75
EV to EBIT
19.00
EV to EBITDA
8.15
EV to Capital Employed
0.49
EV to Sales
0.13
PEG Ratio
NA
Dividend Yield
3.55%
ROCE (Latest)
1.50%
ROE (Latest)
3.84%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
4What is working for the Company
OPERATING CF(Y)
Highest at Rs 36.61 Cr
NET SALES(Q)
Highest at Rs 332.62 cr
-6What is not working for the Company
PAT(Latest six months)
At Rs 11.01 cr has Grown at -21.19%
NON-OPERATING INCOME(Q)
is 85.57 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Munjal Showa
Operating Cash Flow - Annually
Highest at Rs 36.61 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 332.62 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Munjal Showa
Profit After Tax (PAT) - Quarterly
At Rs 2.73 cr has Fallen at -56.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.31 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 85.57 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT






