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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Menon Bearings Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:47 pm

Market Cap 667 Cr.
Current Price 119
High / Low158/108
Stock P/E30.1
Book Value 21.2
Dividend Yield1.89 %
ROCE22.5 %
ROE18.0 %
Face Value 1.00
PEG Ratio2.07

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

View Share Price Target for Menon Bearings Ltd

Competitors of Menon Bearings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Galaxy Bearings Ltd 349 Cr. 1,0991,800/1,07618.2 3180.00 %27.7 %22.3 % 10.0
Deccan Bearings Ltd 19.2 Cr. 87.887.8/35.9 0.780.00 %68.8 %68.8 % 10.0
Benara Bearings & Pistons Ltd 25.2 Cr. 14.226.8/13.3 10.80.00 %2.39 %14.1 % 10.0
Austin Engineering Company Ltd 71.0 Cr. 204268/16716.7 1820.00 %8.91 %6.17 % 10.0
Timken India Ltd 24,498 Cr. 3,2504,818/2,49062.0 3440.08 %23.4 %17.6 % 10.0
Industry Average17,376.67 Cr1,456.3335.63194.440.71%24.91%22.40%7.22

All Competitor Stocks of Menon Bearings Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales43.3946.5246.2148.5249.0651.6162.0051.4249.6553.8754.5550.1349.38
Expenses33.8236.4335.9538.6440.0940.6448.7140.5237.1640.1442.7239.8039.88
Operating Profit9.5710.0910.269.888.9710.9713.2910.9012.4913.7311.8310.339.50
OPM %22.06%21.69%22.20%20.36%18.28%21.26%21.44%21.20%25.16%25.49%21.69%20.61%19.24%
Other Income0.781.030.830.460.790.530.981.070.680.200.610.980.90
Interest0.880.810.740.680.720.450.620.810.800.680.580.880.93
Depreciation1.851.981.891.921.942.001.962.012.051.902.052.082.07
Profit before tax7.628.338.467.747.109.0511.699.1510.3211.359.818.357.40
Tax %25.20%22.57%22.34%23.90%25.35%25.08%24.98%24.59%24.81%19.12%25.28%24.55%24.46%
Net Profit5.706.456.575.885.306.788.776.907.759.187.336.305.59
EPS in Rs1.021.151.171.050.951.211.561.231.381.641.311.121.00

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
Sales888387103111124146174139149198219208
Expenses717071818290108131109115155166163
Operating Profit17131523293337433034425345
OPM %19%15%18%22%26%27%26%25%21%23%21%24%22%
Other Income0111011111003
Interest2222212454333
Depreciation4554554577888
Profit before tax117917232832362025324337
Tax %31%45%31%31%36%31%35%30%27%24%24%23%
Net Profit74612151921251419253328
EPS in Rs1.320.661.102.062.663.413.764.512.573.354.385.845.07
Dividend Payout %35%50%45%32%31%29%40%33%97%45%46%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-42.86%50.00%100.00%25.00%26.67%10.53%19.05%-44.00%35.71%31.58%32.00%
Change in YoY Net Profit Growth (%)0.00%92.86%50.00%-75.00%1.67%-16.14%8.52%-63.05%79.71%-4.14%0.42%

Menon Bearings 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:9%
5 Years:4%
3 Years:12%
TTM:-12%
Compounded Profit Growth
10 Years:15%
5 Years:0%
3 Years:10%
TTM:-27%
Stock Price CAGR
10 Years:17%
5 Years:17%
3 Years:12%
1 Year:-13%
Return on Equity
10 Years:24%
5 Years:21%
3 Years:22%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5555666666666
Reserves283138475971858393106128141113
Borrowings25201712212546382923153441
Other Liabilities15181916172322232728342620
Total Liabilities73747880103126158149155163182207180
Fixed Assets36383635374856728079767259
CWIP21014519101081411
Investments0000003010101213
Other Assets343642446273806772858710997
Total Assets73747880103126158149155163182207180

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +310852023263024245020
Cash from Investing Activity +-6-4-2-4-10-15-30-10-6-3-23-11
Cash from Financing Activity +4-6-3-41-75-29-21-20-234
Net Cash Flow012-41221-8-31413

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow17.00-12.00-5.006.0017.0012.0012.00-3.00-8.005.0019.0038.00

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 Days7875738286898393108948394
Inventory Days97999111010799961281149390101
Days Payable628159647073587687585255
Cash Conversion Cycle11394105129123115120144135129121140
Working Capital Days72586187918687951009472102
ROCE %16%20%33%40%38%36%33%18%22%26%32%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters71.25%71.25%71.25%71.25%71.25%71.25%71.25%70.18%70.18%70.18%70.18%70.18%
FIIs2.47%2.24%2.13%2.13%1.85%1.59%1.64%1.00%0.57%0.54%0.56%0.58%
Public26.28%26.51%26.62%26.62%26.90%27.16%27.10%28.82%29.25%29.28%29.26%29.24%
No. of Shareholders19,13722,35825,94825,33425,40824,33722,69925,02026,25627,18828,34026,795

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)4.585.844.383.352.57
Diluted EPS (Rs.)4.585.844.383.352.57
Cash EPS (Rs.)6.047.255.764.693.80
Book Value[Excl.RevalReserv]/Share (Rs.)26.1123.8119.9817.6115.74
Book Value[Incl.RevalReserv]/Share (Rs.)26.1223.8119.9817.6215.74
Dividend / Share (Rs.)2.252.002.001.502.50
Revenue From Operations / Share (Rs.)37.1439.1435.2426.6724.82
PBDIT / Share (Rs.)8.189.547.626.415.54
PBIT / Share (Rs.)6.738.136.245.084.31
PBT / Share (Rs.)6.157.615.774.443.50
Net Profit / Share (Rs.)4.585.844.383.352.57
PBDIT Margin (%)22.0224.3621.6124.0322.32
PBIT Margin (%)18.1120.7517.6919.0217.37
PBT Margin (%)16.5619.4316.3716.6314.09
Net Profit Margin (%)12.3414.9112.4212.5710.35
Return on Networth / Equity (%)17.5524.5221.9119.0416.32
Return on Capital Employeed (%)22.2431.8628.4224.5121.46
Return On Assets (%)12.4117.9915.0212.149.63
Long Term Debt / Equity (X)0.120.040.050.130.23
Total Debt / Equity (X)0.220.100.200.290.43
Asset Turnover Ratio (%)1.071.271.240.980.90
Current Ratio (X)2.852.222.071.841.79
Quick Ratio (X)2.261.661.541.421.37
Inventory Turnover Ratio (X)3.674.124.543.302.78
Dividend Payout Ratio (NP) (%)49.0834.2545.6844.7197.30
Dividend Payout Ratio (CP) (%)37.2627.5834.7231.9865.84
Earning Retention Ratio (%)50.9265.7554.3255.292.70
Cash Earning Retention Ratio (%)62.7472.4265.2868.0234.16
Interest Coverage Ratio (X)14.2018.3616.4710.066.80
Interest Coverage Ratio (Post Tax) (X)8.9512.2410.476.264.15
Enterprise Value (Cr.)635.91542.32512.13322.36201.28
EV / Net Operating Revenue (X)3.062.472.592.161.45
EV / EBITDA (X)13.8710.1512.008.976.48
MarketCap / Net Operating Revenue (X)3.022.472.522.011.25
Retention Ratios (%)50.9165.7454.3155.282.69
Price / BV (X)4.294.054.443.051.97
Price / Net Operating Revenue (X)3.022.472.522.011.25
EarningsYield0.040.060.040.060.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Menon Bearings Ltd as of November 22, 2024 is: 117.03

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 22, 2024, Menon Bearings Ltd is Overvalued by 1.66% compared to the current share price 119.00

Intrinsic Value of Menon Bearings Ltd as of November 22, 2024 is: 134.06

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 22, 2024, Menon Bearings Ltd is Undervalued by 12.66% compared to the current share price 119.00

Last 5 Year EPS CAGR: 14.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 28.08%, which is a positive sign.
  2. The company has higher reserves (78.69 cr) compared to borrowings (26.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (140.69 cr) and profit (24.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 83.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 122.33, 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 Menon Bearings Ltd:
    1. Net Profit Margin: 12.34%
      • 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: 22.24% (Industry Average ROCE: 24.91%)
      • 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%: 17.55% (Industry Average ROE: 22.4%)
      • 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): 8.95
      • 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: 2.26
      • 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: 30.1 (Industry average Stock P/E: 35.63)
      • 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: 0.22
      • 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest intrinsic value of Menon Bearings Ltd?

The latest intrinsic value of Menon Bearings Ltd as on 21 November 2024 is ₹117.03, which is 1.66% lower than the current market price of ₹119.00.

What is the Market Cap of Menon Bearings Ltd?

The Market Cap of Menon Bearings Ltd is 667 Cr..

What is the current Stock Price of Menon Bearings Ltd as on 21 November 2024?

The current stock price of Menon Bearings Ltd as on 21 November 2024 is ₹119.

What is the High / Low of Menon Bearings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Menon Bearings Ltd stocks is 158/108.

What is the Stock P/E of Menon Bearings Ltd?

The Stock P/E of Menon Bearings Ltd is 30.1.

What is the Book Value of Menon Bearings Ltd?

The Book Value of Menon Bearings Ltd is 21.2.

What is the Dividend Yield of Menon Bearings Ltd?

The Dividend Yield of Menon Bearings Ltd is 1.89 %.

What is the ROCE of Menon Bearings Ltd?

The ROCE of Menon Bearings Ltd is 22.5 %.

What is the ROE of Menon Bearings Ltd?

The ROE of Menon Bearings Ltd is 18.0 %.

What is the Face Value of Menon Bearings Ltd?

The Face Value of Menon Bearings Ltd is 1.00.

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 Menon Bearings 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