BSE:500267

Stock Analysis Report

Executive Summary

Majestic Auto Limited engages in the space leasing and facility management activities in India.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has Majestic Auto's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500267's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.4%

500267

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-59.7%

500267

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 500267 underperformed the Indian Auto industry which returned -45.3% over the past year.

Return vs Market: 500267 underperformed the Indian Market which returned -31.7% over the past year.


Shareholder returns

500267IndustryMarket
7 Day3.4%-3.5%-1.1%
30 Day-39.9%-34.3%-25.1%
90 Day-52.8%-43.1%-30.6%
1 Year-59.7%-59.7%-44.1%-45.3%-30.3%-31.7%
3 Year-42.3%-42.3%-50.6%-52.4%-20.1%-24.4%
5 Year-4.2%-4.2%-38.4%-41.3%-11.0%-15.7%

Price Volatility Vs. Market

How volatile is Majestic Auto's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Majestic Auto undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500267 (₹61) is trading below our estimate of fair value (₹646.24)

Significantly Below Fair Value: 500267 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500267 is good value based on its PE Ratio (1.5x) compared to the Auto industry average (12.8x).

PE vs Market: 500267 is good value based on its PE Ratio (1.5x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500267's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500267 is good value based on its PB Ratio (0.1x) compared to the IN Auto industry average (1.6x).


Next Steps

Future Growth

How is Majestic Auto forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Majestic Auto has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Majestic Auto performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500267 has high quality earnings.

Growing Profit Margin: 500267's current net profit margins (40.2%) are higher than last year (36.6%).


Past Earnings Growth Analysis

Earnings Trend: 500267's earnings have grown significantly by 36.6% per year over the past 5 years.

Accelerating Growth: 500267's earnings growth over the past year (41.2%) exceeds its 5-year average (36.6% per year).

Earnings vs Industry: 500267 earnings growth over the past year (41.2%) exceeded the Auto industry 0%.


Return on Equity

High ROE: 500267's Return on Equity (10.1%) is considered low.


Next Steps

Financial Health

How is Majestic Auto's financial position?


Financial Position Analysis

Short Term Liabilities: 500267's short term assets (₹217.0M) do not cover its short term liabilities (₹374.3M).

Long Term Liabilities: 500267's short term assets (₹217.0M) do not cover its long term liabilities (₹2.0B).


Debt to Equity History and Analysis

Debt Level: 500267's debt to equity ratio (43.1%) is considered high.

Reducing Debt: 500267's debt to equity ratio has reduced from 67.7% to 43.1% over the past 5 years.

Debt Coverage: 500267's debt is well covered by operating cash flow (36.7%).

Interest Coverage: 500267's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Majestic Auto's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500267's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500267's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500267's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500267's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500267's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Mahesh Munjal (65yo)

20.75s

Tenure

₹11,342,000

Compensation

Mr. Mahesh Chander Munjal, B.Tech. MBA serves as the Chairman of Majestic Auto Limited and has been its Managing Director since July 29, 1999. Mr. Munjal is responsible for Day to day management of the aff ...


CEO Compensation Analysis

Compensation vs Market: Mahesh's total compensation ($USD149.24K) is above average for companies of similar size in the Indian market ($USD47.67K).

Compensation vs Earnings: Mahesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mahesh Munjal
Chairman & MD20.75yrs₹11.34mno data
Aashima Munjal
Joint MD & Whole Time Director9.67yrsno datano data
Rajpal Negi
Chief Financial Officer2.42yrs₹936.00kno data
Juhi Garg
Company Secretary & Compliance Officer2.5yrs₹570.00kno data
Aayush Munjal
Whole Time Director4.67yrs₹3.64mno data

3.0yrs

Average Tenure

38yo

Average Age

Experienced Management: 500267's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mahesh Munjal
Chairman & MD20.75yrs₹11.34mno data
Aashima Munjal
Joint MD & Whole Time Director9.67yrsno datano data
Aayush Munjal
Whole Time Director4.67yrs₹3.64mno data
Sham Mohan
Independent Director1yrno datano data
Naveen Jain
Independent Director1.67yrs₹48.00kno data
Vikas Nanda
Non Executive Independent Director3.17yrs₹58.00kno data
Anil Sharma
Additional Independent Director0.67yrno datano data

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 500267's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Majestic Auto Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Majestic Auto Limited
  • Ticker: 500267
  • Exchange: BSE
  • Founded: 1973
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹652.442m
  • Shares outstanding: 10.40m
  • Website: https://www.majesticauto.in

Location

  • Majestic Auto Limited
  • A-110, Ground Floor
  • Sector 4
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500267BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994

Biography

Majestic Auto Limited engages in the space leasing and facility management activities in India. It leases developed offices and retail properties. As of March 31, 2019, the company’s lease business comprised completed offices with leasable area of approximately 6,06,712 square feet. It also provides facility management services. The company was formerly known as Majestic Gears (P) Limited and changed its name to Majestic Auto Limited in August 1977. Majestic Auto Limited was incorporated in 1973 and is based in Noida, India. Majestic Auto Limited is a subsidiary of Anadi Investments Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:00
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.