Why is Munjal Showa Ltd. ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 4.52% and Operating profit at 6.42% over the last 5 years
3
Positive results in Dec 25
- PAT(Q) At Rs 12.53 cr has Grown at 93.4% (vs previous 4Q average)
- NET SALES(Q) Highest at Rs 349.68 cr
- PBDIT(Q) Highest at Rs 12.28 cr.
4
With ROE of 4.8, it has a Fair valuation with a 0.8 Price to Book Value
- 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 3.81%, its profits have risen by 16.9% ; the PEG ratio of the company is 1
5
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
How much should you hold?
- Overall Portfolio exposure to Munjal Showa 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 Munjal Showa for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Munjal Showa
3.01%
0.09
32.54%
Sensex
-6.84%
-0.53
12.96%
Quality key factors
Factor
Value
Sales Growth (5y)
4.52%
EBIT Growth (5y)
6.42%
EBIT to Interest (avg)
7.00
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
25.62%
Dividend Payout Ratio
62.34%
Pledged Shares
0
Institutional Holding
0.10%
ROCE (avg)
2.24%
ROE (avg)
3.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
35
Price to Book Value
0.82
EV to EBIT
15.49
EV to EBITDA
8.60
EV to Capital Employed
0.63
EV to Sales
0.16
PEG Ratio
1.01
Dividend Yield
3.24%
ROCE (Latest)
1.50%
ROE (Latest)
4.81%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
16What is working for the Company
PAT(Q)
At Rs 12.53 cr has Grown at 93.4% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 349.68 cr
PBDIT(Q)
Highest at Rs 12.28 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 3.51%
PBT LESS OI(Q)
Highest at Rs 9.76 cr.
EPS(Q)
Highest at Rs 2.73
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 42.62 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Munjal Showa
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 9.76 cr has Grown at 363.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 2.11 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 12.53 cr has Grown at 93.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.48 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 349.68 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 12.28 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 3.51%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 9.76 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 12.53 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.73
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Munjal Showa
Non Operating Income - Quarterly
is 42.62 % 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






