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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Munjal Showa Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 7:27 pm

Market Cap 615 Cr.
Current Price 154
High / Low212/126
Stock P/E19.8
Book Value 166
Dividend Yield2.93 %
ROCE5.21 %
ROE4.38 %
Face Value 2.00
PEG Ratio26.73

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Munjal Showa Ltd

Competitors of Munjal Showa Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Munjal Showa Ltd 615 Cr. 154212/12619.8 1662.93 %5.21 %4.38 % 2.00
Industry Average615.00 Cr154.0019.80166.002.93%5.21%4.38%2.00

All Competitor Stocks of Munjal Showa Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales348.38316.47196.58301.14265.97296.25317.74316.41307.53298.85287.87287.26303.32
Expenses329.58309.23201.61296.90265.63287.59314.51313.40299.52282.91280.82289.00299.91
Operating Profit18.807.24-5.034.240.348.663.233.018.0115.947.05-1.743.41
OPM %5.40%2.29%-2.56%1.41%0.13%2.92%1.02%0.95%2.60%5.33%2.45%-0.61%1.12%
Other Income7.453.675.476.803.951.950.058.77-0.1115.1211.185.989.82
Interest0.000.010.020.000.030.000.010.020.010.010.000.000.00
Depreciation4.383.693.223.253.092.892.932.852.993.023.023.083.13
Profit before tax21.877.21-2.807.791.177.720.348.914.9028.0315.211.1610.10
Tax %21.03%19.14%20.71%18.36%17.09%8.68%8.82%18.63%35.92%24.40%16.11%-32.76%14.46%
Net Profit17.275.82-2.236.370.977.040.307.263.1421.2012.761.548.64
EPS in Rs4.321.46-0.561.590.241.760.081.820.795.303.190.392.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,5531,5781,5951,6431,5021,4601,5811,6691,2881,0851,0601,2411,177
Expenses1,4311,4711,4891,5161,3891,3601,4681,5811,2331,0611,0521,2101,153
Operating Profit12210710612711310011388552483025
OPM %8%7%7%8%8%7%7%5%4%2%1%2%2%
Other Income3-46951721232524182442
Interest11731000010000
Depreciation27282829292928262016121212
Profit before tax8668801068888105865831144254
Tax %22%11%13%29%30%31%26%27%27%17%12%24%
Net Profit67617076616178634326123244
EPS in Rs16.7815.1717.4318.9115.2915.1819.3815.6510.646.543.047.9811.04
Dividend Payout %18%20%20%21%26%26%23%29%42%69%148%56%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-8.96%14.75%8.57%-19.74%0.00%27.87%-19.23%-31.75%-39.53%-53.85%166.67%
Change in YoY Net Profit Growth (%)0.00%23.71%-6.18%-28.31%19.74%27.87%-47.10%-12.52%-7.79%-14.31%220.51%

Munjal Showa Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-3%
5 Years:-7%
3 Years:3%
TTM:4%
Compounded Profit Growth
10 Years:-8%
5 Years:-11%
3 Years:9%
TTM:-5%
Stock Price CAGR
10 Years:-5%
5 Years:2%
3 Years:4%
1 Year:9%
Return on Equity
10 Years:7%
5 Years:3%
3 Years:3%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital888888888888
Reserves295348403445505562603625633629643656
Borrowings2100000000000
Other Liabilities208218202157163224181129160148159146
Total Liabilities532574613610676793791761801786811811
Fixed Assets246233211197178157143145134125129123
CWIP712331321620
Investments20306882171244243319292307313322
Other Assets259311332328324391402295374349367366
Total Assets532574613610676793791761801786811811

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +11655556583964166-1830611
Cash from Investing Activity +-31-18-48-26-79-633-8243-5019
Cash from Financing Activity +-72-40-22-38-0-19-22-22-18-18-18-18
Net Cash Flow13-2-14141423-3977-1112

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow122.0086.00106.00127.00113.00100.00113.0088.0055.0024.008.0030.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days334045484957444066595757
Inventory Days121520212120232839322829
Days Payable475147444658423957514946
Cash Conversion Cycle-2518252418252949403640
Working Capital Days-21122312823253049414344
ROCE %25%24%27%20%17%18%12%6%4%1%5%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters65.02%65.02%65.02%65.01%65.01%65.02%65.02%65.02%65.02%65.02%65.02%65.02%
FIIs0.83%0.79%0.88%1.25%1.37%1.36%1.26%1.53%1.25%1.27%1.27%1.55%
DIIs0.03%0.02%0.02%0.04%0.03%0.03%0.03%0.01%0.01%0.03%0.01%0.01%
Public34.13%34.17%34.08%33.70%33.59%33.59%33.71%33.45%33.72%33.68%33.70%33.42%
No. of Shareholders23,13222,63623,15623,02823,36823,03722,79723,30423,75824,14728,86827,989

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)7.697.983.046.5410.64
Diluted EPS (Rs.)7.697.983.046.5410.64
Cash EPS (Rs.)10.7610.926.1510.6015.73
Book Value[Excl.RevalReserv]/Share (Rs.)166.08162.82159.36160.36158.15
Book Value[Incl.RevalReserv]/Share (Rs.)166.08162.82159.36160.36158.15
Dividend / Share (Rs.)4.504.504.504.504.50
Revenue From Operations / Share (Rs.)293.21310.16265.01271.37322.08
PBDIT / Share (Rs.)12.4712.626.6011.9719.82
PBIT / Share (Rs.)9.399.683.487.9014.72
PBT / Share (Rs.)9.0710.553.477.8614.61
Net Profit / Share (Rs.)7.697.983.046.5410.64
PBDIT Margin (%)4.254.062.494.406.15
PBIT Margin (%)3.203.111.312.914.57
PBT Margin (%)3.093.401.302.894.53
Net Profit Margin (%)2.622.571.142.403.30
Return on Networth / Equity (%)4.634.891.904.076.72
Return on Capital Employeed (%)5.555.852.154.839.27
Return On Assets (%)3.793.931.543.265.58
Asset Turnover Ratio (%)1.451.551.341.391.66
Current Ratio (X)4.153.763.763.684.00
Quick Ratio (X)3.613.273.233.093.43
Inventory Turnover Ratio (X)12.3613.3310.2110.0712.44
Dividend Payout Ratio (NP) (%)0.0056.41148.1268.8542.31
Dividend Payout Ratio (CP) (%)0.0041.1973.1442.4428.60
Earning Retention Ratio (%)0.0043.59-48.1231.1557.69
Cash Earning Retention Ratio (%)0.0058.8126.8657.5671.40
Interest Coverage Ratio (X)3988.641036.68440.61324.02186.35
Interest Coverage Ratio (Post Tax) (X)2563.51583.55203.84177.98101.02
Enterprise Value (Cr.)634.67333.41374.22542.01235.41
EV / Net Operating Revenue (X)0.540.260.350.490.18
EV / EBITDA (X)12.736.6014.1811.332.97
MarketCap / Net Operating Revenue (X)0.550.270.360.500.18
Retention Ratios (%)0.0043.58-48.1231.1457.68
Price / BV (X)0.980.520.610.860.37
Price / Net Operating Revenue (X)0.550.270.360.500.18
EarningsYield0.040.090.030.040.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Munjal Showa Ltd as of November 14, 2024 is: 148.18

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Munjal Showa Ltd is Overvalued by 3.78% compared to the current share price 154.00

Intrinsic Value of Munjal Showa Ltd as of November 14, 2024 is: 149.28

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Munjal Showa Ltd is Overvalued by 3.06% compared to the current share price 154.00

Last 5 Year EPS CAGR: 0.74%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 28.75, which is a positive sign.
  2. The company has higher reserves (528.92 cr) compared to borrowings (1.75 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.00 cr) and profit (69.69 cr) over the years.
  1. The stock has a low average ROCE of 13.67%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 25.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Munjal Showa Ltd:
    1. Net Profit Margin: 2.62%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 5.55% (Industry Average ROCE: 5.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 4.63% (Industry Average ROE: 4.38%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2563.51
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.61
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 19.8 (Industry average Stock P/E: 19.8)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Munjal Showa Ltd. is a Public Limited Listed company incorporated on 16/05/1985 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L34101HR1985PLC020934 and registration number is 020934. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 1059.95 Cr. and Equity Capital is Rs. 8.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Shock Absorber9-11, Maruti Industrial Area, Sector-18, Gurgaon Haryana 122015cs@munjalshowa.net
http://www.munjalshowa.net
Management
NamePosition Held
Mr. Yogesh Chander MunjalChairman & Managing Director
Mr. Hitoshi FukagawaJoint Managing Director
Ms. Neetika BatraDirector
Mr. Ashok Kumar MunjalDirector
Mr. Kazuhiro NishiokaDirector
Mrs. Kavita VenugopalDirector

FAQ

What is the latest intrinsic value of Munjal Showa Ltd?

The latest intrinsic value of Munjal Showa Ltd as on 13 November 2024 is ₹148.18, which is 3.78% lower than the current market price of ₹154.00.

What is the Market Cap of Munjal Showa Ltd?

The Market Cap of Munjal Showa Ltd is 615 Cr..

What is the current Stock Price of Munjal Showa Ltd as on 13 November 2024?

The current stock price of Munjal Showa Ltd as on 13 November 2024 is ₹154.

What is the High / Low of Munjal Showa Ltd stocks in FY 2024?

In FY 2024, the High / Low of Munjal Showa Ltd stocks is 212/126.

What is the Stock P/E of Munjal Showa Ltd?

The Stock P/E of Munjal Showa Ltd is 19.8.

What is the Book Value of Munjal Showa Ltd?

The Book Value of Munjal Showa Ltd is 166.

What is the Dividend Yield of Munjal Showa Ltd?

The Dividend Yield of Munjal Showa Ltd is 2.93 %.

What is the ROCE of Munjal Showa Ltd?

The ROCE of Munjal Showa Ltd is 5.21 %.

What is the ROE of Munjal Showa Ltd?

The ROE of Munjal Showa Ltd is 4.38 %.

What is the Face Value of Munjal Showa Ltd?

The Face Value of Munjal Showa Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Munjal Showa Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE