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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Munjal Auto Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:15 pm

Market Cap 1,133 Cr.
Current Price 113
High / Low146/62.0
Stock P/E19.4
Book Value 41.1
Dividend Yield1.77 %
ROCE14.7 %
ROE11.6 %
Face Value 2.00
PEG Ratio0.65

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

View Share Price Target for Munjal Auto Industries Ltd

Competitors of Munjal Auto Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
G S Auto International Ltd 54.7 Cr. 37.754.8/21.644.5 15.60.00 %10.1 %3.21 % 5.00
Duncan Engineering Ltd 240 Cr. 649902/37836.9 1490.54 %18.4 %13.9 % 10.0
Bharat Seats Ltd 615 Cr. 196240/12622.5 55.90.82 %15.3 %15.9 % 2.00
Automobile Corporation of Goa Ltd 1,310 Cr. 2,1513,449/1,38528.5 3870.93 %18.7 %18.6 % 10.0
Akar Auto Industries Ltd 113 Cr. 105170/87.818.1 44.40.57 %17.3 %13.1 % 5.00
Industry Average3,182.41N/A32.79N/AN/A16.3614.65N/A

All Competitor Stocks of Munjal Auto Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales645618436644468374481544477483509545422
Expenses620578418622445355456518459461484509396
Operating Profit24401821232025261721253626
OPM %4%6%4%3%5%5%5%5%4%4%5%7%6%
Other Income10112151333107-28
Interest4433335777777
Depreciation10109109712131414141414
Profit before tax11277101311589-041422-23
Tax %49%28%14%40%43%5%22%14%-748%36%28%33%0%
Net Profit62066710458-421015-23
EPS in Rs0.721.730.450.510.740.984.550.77-0.070.360.991.38-1.22

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,2141,2362,1231,9161,9841,958
Expenses1,1431,1902,0401,8331,8941,850
Operating Profit7145838390108
OPM %6%4%4%4%5%6%
Other Income355560-7
Interest41216122729
Depreciation203239365355
Profit before tax49733417017
Tax %23%44%38%27%27%
Net Profit3742030524
EPS in Rs3.600.412.062.685.611.51
Dividend Payout %28%0%0%37%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-89.19%400.00%50.00%73.33%
Change in YoY Net Profit Growth (%)0.00%489.19%-350.00%23.33%

Munjal Auto Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2019-2020 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:9%
3 Years:-4%
TTM:-8%
Compounded Profit Growth
10 Years:%
5 Years:4%
3 Years:30%
TTM:131%
Stock Price CAGR
10 Years:7%
5 Years:19%
3 Years:27%
1 Year:80%
Return on Equity
10 Years:%
5 Years:7%
3 Years:9%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:30 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital20202020202020
Reserves277269291317364381391
Borrowings47123147116282276302
Other Liabilities220383405508602527564
Total Liabilities5647968629611,2681,2051,277
Fixed Assets200343303263416399413
CWIP25214897
Investments72126118104171140
Other Assets332430531576740626717
Total Assets5647968629611,2681,2051,277

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +26875913733127
Cash from Investing Activity +-15-139-14-9937-77
Cash from Financing Activity +-547-45-50-65-53
Net Cash Flow6-5-0-136-3

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow24.00-78.00-64.00-33.00-192.00

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 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days497966748054
Inventory Days303617265058
Days Payable6011053587668
Cash Conversion Cycle18630415544
Working Capital Days10919142621
ROCE %5%11%11%9%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%
FIIs0.00%0.01%0.07%0.00%0.02%0.08%0.00%0.05%0.00%0.02%0.00%0.01%
DIIs0.07%0.02%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%
Public25.12%25.16%25.10%25.17%25.15%25.07%25.17%25.12%25.16%25.16%25.16%25.15%
No. of Shareholders41,53640,56940,22140,40140,39639,33539,34938,91938,21140,13044,28645,332

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.)3.855.612.962.040.37
Diluted EPS (Rs.)3.855.612.962.040.37
Cash EPS (Rs.)9.3710.466.545.953.52
Book Value[Excl.RevalReserv]/Share (Rs.)41.0939.4435.2032.2230.06
Book Value[Incl.RevalReserv]/Share (Rs.)41.0939.4435.2032.2230.06
Revenue From Operations / Share (Rs.)188.18198.43191.57213.44123.56
PBDIT / Share (Rs.)15.6410.278.828.785.06
PBIT / Share (Rs.)10.074.975.244.881.91
PBT / Share (Rs.)6.127.034.073.320.67
Net Profit / Share (Rs.)3.805.162.962.040.37
NP After MI And SOA / Share (Rs.)3.855.612.682.060.41
PBDIT Margin (%)8.315.174.604.114.09
PBIT Margin (%)5.352.502.732.281.54
PBT Margin (%)3.253.542.121.550.54
Net Profit Margin (%)2.022.601.540.950.30
NP After MI And SOA Margin (%)2.042.821.390.960.33
Return on Networth / Equity (%)9.5914.607.936.641.42
Return on Capital Employeed (%)15.747.8311.6911.014.40
Return On Assets (%)3.164.402.782.300.51
Long Term Debt / Equity (X)0.040.080.150.250.32
Total Debt / Equity (X)0.240.250.270.290.37
Asset Turnover Ratio (%)1.511.772.052.541.81
Current Ratio (X)1.321.261.291.251.15
Quick Ratio (X)0.950.931.071.060.88
Inventory Turnover Ratio (X)6.259.8424.1724.0612.88
Dividend Payout Ratio (NP) (%)0.000.000.000.00242.61
Dividend Payout Ratio (CP) (%)0.000.000.000.0028.07
Earning Retention Ratio (%)0.000.000.000.00-142.61
Cash Earning Retention Ratio (%)0.000.000.000.0071.93
Interest Coverage Ratio (X)5.683.797.505.624.20
Interest Coverage Ratio (Post Tax) (X)2.821.153.522.311.34
Enterprise Value (Cr.)890.50458.76508.77622.92364.33
EV / Net Operating Revenue (X)0.470.230.260.290.29
EV / EBITDA (X)5.694.475.777.097.20
MarketCap / Net Operating Revenue (X)0.420.180.210.250.21
Retention Ratios (%)0.000.000.000.00-142.61
Price / BV (X)1.980.941.211.730.90
Price / Net Operating Revenue (X)0.420.180.210.250.21
EarningsYield0.040.150.060.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Munjal Auto Industries Ltd as of November 17, 2024 is: 94.13

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 17, 2024, Munjal Auto Industries Ltd is Overvalued by 16.70% compared to the current share price 113.00

Intrinsic Value of Munjal Auto Industries Ltd as of November 17, 2024 is: 122.17

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 17, 2024, Munjal Auto Industries Ltd is Undervalued by 8.12% compared to the current share price 113.00

Last 5 Year EPS CAGR: 29.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 16.50, which is a positive sign.
  2. The company has higher reserves (327.14 cr) compared to borrowings (184.71 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.17 cr) and profit (36.17 cr) over the years.
  1. The stock has a low average ROCE of 8.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 32.33, 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 Munjal Auto Industries Ltd:
    1. Net Profit Margin: 2.02%
      • 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: 15.74% (Industry Average ROCE: 16.36%)
      • 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%: 9.59% (Industry Average ROE: 14.65%)
      • 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): 2.82
      • 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: 0.95
      • 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: 19.4 (Industry average Stock P/E: 32.79)
      • 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: 0.24
      • 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 Auto Industries Ltd. is a Public Limited Listed company incorporated on 12/07/1985 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L34100GJ1985PLC007958 and registration number is 007958. 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. 1706.55 Cr. and Equity Capital is Rs. 20.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Others187, GIDC Industrial Estate, Waghodia, Vadodra District Gujarat 391760cs@munjalauto.com
http://www.munjalauto.com
Management
NamePosition Held
Mr. Sudhir Kumar MunjalChairman & Managing Director
Mrs. Anju MunjalWhole Time Director
Mr. Anuj MunjalWhole Time Director
Mr. Atul PatelDirector
Mr. Sunil VakilDirector
Mr. Sameer KheraDirector
Ms. Avi SabavalaDirector

FAQ

What is the latest intrinsic value of Munjal Auto Industries Ltd?

The latest intrinsic value of Munjal Auto Industries Ltd as on 17 November 2024 is ₹94.13, which is 16.70% lower than the current market price of ₹113.00.

What is the Market Cap of Munjal Auto Industries Ltd?

The Market Cap of Munjal Auto Industries Ltd is 1,133 Cr..

What is the current Stock Price of Munjal Auto Industries Ltd as on 17 November 2024?

The current stock price of Munjal Auto Industries Ltd as on 17 November 2024 is ₹113.

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

In FY 2024, the High / Low of Munjal Auto Industries Ltd stocks is 146/62.0.

What is the Stock P/E of Munjal Auto Industries Ltd?

The Stock P/E of Munjal Auto Industries Ltd is 19.4.

What is the Book Value of Munjal Auto Industries Ltd?

The Book Value of Munjal Auto Industries Ltd is 41.1.

What is the Dividend Yield of Munjal Auto Industries Ltd?

The Dividend Yield of Munjal Auto Industries Ltd is 1.77 %.

What is the ROCE of Munjal Auto Industries Ltd?

The ROCE of Munjal Auto Industries Ltd is 14.7 %.

What is the ROE of Munjal Auto Industries Ltd?

The ROE of Munjal Auto Industries Ltd is 11.6 %.

What is the Face Value of Munjal Auto Industries Ltd?

The Face Value of Munjal Auto Industries 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 Auto Industries 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