BSE:500267

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Majestic Auto has significant price volatility in the past 3 months.
  • Majestic Auto is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-19.3%

BSE:500267

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

-2.2%

BSE:500267

-32.9%

IN Auto

-12.1%

IN Market

500267 outperformed the Auto industry which returned -33% over the past year.

500267 outperformed the Market in India which returned -12.1% over the past year.


Share holder returns

500267IndustryMarket
7 Day-19.3%-1.5%-0.7%
30 Day-11.4%-3.5%-4.6%
90 Day-32.9%-13.4%-4.3%
1 Year-2.2%-2.2%-31.9%-32.9%-10.3%-12.1%
3 Year21.7%21.7%-19.9%-22.5%18.9%12.8%
5 Year109.2%109.2%6.1%1.0%37.6%24.7%

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 based on future cash flows and its price relative to the stock market?

2.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Majestic Auto to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Majestic Auto to establish if it is available at substantial discount.


Price Based on Earnings

Majestic Auto is good value based on earnings compared to the IN Auto industry average.

Majestic Auto is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Majestic Auto, we can't assess if its growth is good value.


Price Based on Value of Assets

Majestic Auto is good value based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

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

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Majestic Auto is high growth as no revenue estimate data is available.

Majestic Auto's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Majestic Auto's revenue growth to the India market average as no estimate data is available.

Majestic Auto's earnings growth is expected to exceed the India market average.

Majestic Auto's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Majestic Auto will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Majestic Auto performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Majestic Auto's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Majestic Auto's 1-year earnings growth exceeds its 5-year average (483.6% vs -4.4%)

Majestic Auto's earnings growth has exceeded the IN Auto industry average in the past year (483.6% vs 4%).


Return on Equity

Majestic Auto has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Majestic Auto used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.


Return on Capital Employed

Majestic Auto has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Majestic Auto's financial position?


Financial Position Analysis

Majestic Auto is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Majestic Auto's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Majestic Auto's level of debt (50.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (75.1% vs 50.6% today).

Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Majestic Auto's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Majestic Auto's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Majestic Auto has not reported any payouts.

Unable to verify if Majestic Auto's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Majestic Auto has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Majestic Auto's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Mahesh Munjal (65yo)

20.1yrs

Tenure

₹11,407,000

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

Mahesh's remuneration is higher than average for companies of similar size in India.

Mahesh's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

48.5yo

Average Age

The tenure for the Majestic Auto management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

49yo

Average Age

The tenure for the Majestic Auto board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mahesh Munjal (65yo)

    Chairman & MD

    • Tenure: 20.1yrs
    • Compensation: 11.41m
  • Deepak Malik (59yo)

    Senior Vice President

    • Compensation: 1.50m
  • Ashima Munjal (38yo)

    Joint MD & Whole Time Director

    • Tenure: 2.8yrs
  • Aayush Munjal (32yo)

    CTO & Whole Time Director

    • Tenure: 8.2yrs
    • Compensation: 3.16m
  • Juhi Garg

    Company Secretary

    • Tenure: 1.8yrs
  • Rajpal Negi

    Chief Financial Officer

    • Tenure: 1.8yrs

Board Members

  • Mahesh Munjal (65yo)

    Chairman & MD

    • Compensation: 11.41m
  • Ashima Munjal (38yo)

    Joint MD & Whole Time Director

    • Tenure: 9.0yrs
  • Aayush Munjal (32yo)

    CTO & Whole Time Director

    • Tenure: 4.0yrs
    • Compensation: 3.16m
  • Naveen Jain (60yo)

    Independent Director

    • Tenure: 1.0yrs
  • Vikas Nanda

    Non Executive & Independent Director

    • Tenure: 2.5yrs
    • Compensation: 60.00k
  • Anil Sharma

    Additional Independent Director

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: ₹1.240b
  • Shares outstanding: 10.40m
  • Website: Click here

Location

  • Majestic Auto Limited
  • Sector 4
  • A-110, Ground Floor
  • 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, 2018, the company’s lease business compris ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:43
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.