ScoreWhy is Menon Bearings Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.44 times
2
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.71%
3
Positive results in Jun 26
- ROCE(HY) Highest at 23.81%
- PBT LESS OI(Q) At Rs 16.00 cr has Grown at 46.5% (vs previous 4Q average)
- NET SALES(Q) Highest at Rs 91.79 cr
4
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 13-May-26 and has generated 109.4% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW
5
With ROCE of 22.2, it has a Very Expensive valuation with a 8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 119.81%, its profits have risen by 61.5% ; the PEG ratio of the company is 0.6
6
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, High Return
Absolute
Risk Adjusted
Volatility
Menon Bearings
136.75%
2.48
48.26%
Sensex
-11.8%
-0.48
13.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.11%
EBIT Growth (5y)
33.01%
EBIT to Interest (avg)
10.43
Debt to EBITDA (avg)
0.87
Net Debt to Equity (avg)
0.18
Sales to Capital Employed (avg)
1.14
Tax Ratio
23.72%
Dividend Payout Ratio
44.95%
Pledged Shares
0
Institutional Holding
0.54%
ROCE (avg)
20.70%
ROE (avg)
17.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
37
Price to Book Value
8.67
EV to EBIT
29.57
EV to EBITDA
24.89
EV to Capital Employed
7.48
EV to Sales
5.16
PEG Ratio
0.60
Dividend Yield
0.70%
ROCE (Latest)
22.24%
ROE (Latest)
20.64%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
ROCE(HY)
Highest at 23.81%
PBT LESS OI(Q)
At Rs 16.00 cr has Grown at 46.5% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 91.79 cr
PAT(Q)
Highest at Rs 14.11 cr.
EPS(Q)
Highest at Rs 2.52
-8What is not working for the Company
INTEREST(9M)
At Rs 4.11 cr has Grown at 43.21%
OPERATING CF(Y)
Lowest at Rs 14.48 Cr
DPS(Y)
Lowest at Rs 2.00
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 12.60 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.24 times
Loading Valuation Snapshot...
Here's what is working for Menon Bearings
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 16.00 cr has Grown at 46.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 10.93 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 91.79 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 91.79 cr has Grown at 25.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 73.45 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 14.11 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.52
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
Interest - Nine Monthly
At Rs 4.11 cr has Grown at 43.21%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Cash Flow - Annually
Lowest at Rs 14.48 Cr
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 12.60 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 3.24 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend per Share (DPS) - Annually
Lowest at Rs 2.00
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (Rs)
Non Operating Income - Quarterly
Highest at Rs 2.51 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
