Menon Pistons (BSE:531727) - Share price, News & Analysis

531727 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	3/6

531727 Stock Overview

Menon Pistons Limited manufactures and sells auto components in India.

Rewards

Price-To-Earnings ratio (11.3x) is below the Indian market (19.8x)

Earnings grew by 110.4% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 1.79% is not well covered by earnings

Does not have a meaningful market cap (₹2B)

Menon Pistons Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Menon Pistons
Historical stock prices
Current Share Price	₹41.80
52 Week High	₹64.80
52 Week Low	₹26.20
Beta	0.64
1 Month Change	3.85%
3 Month Change	-16.57%
1 Year Change	54.82%
3 Year Change	135.49%
5 Year Change	80.17%
Change since IPO	1,000.00%

Shareholder Returns

	531727	IN Auto Components	IN Market
7D	6.6%	4.7%	2.3%
1Y	54.8%	-7.9%	-0.9%

Return vs Industry: 531727 exceeded the Indian Auto Components industry which returned -7.9% over the past year.

Return vs Market: 531727 exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is 531727's price volatile compared to industry and market?
531727 volatility
531727 Average Weekly Movement	6.2%
Auto Components Industry Average Movement	6.1%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: 531727 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 531727's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	368	Sachin Menon	https://www.menonpistons.com

Menon Pistons Limited manufactures and sells auto components in India. It offers pistons, gudgeon pins, piston rings, and circlips for applications in heavy and light commercial vehicles, tractors, passenger cars, jeeps and utility vehicles, stationary engines, bi-wheelers, diesel engines, gasoline engines, CNG engines, and natural gas engines. The company also exports its products.

Menon Pistons Fundamentals Summary

How do Menon Pistons's earnings and revenue compare to its market cap?
531727 fundamental statistics
Market Cap	₹2.13b
Earnings (TTM)	₹188.00m
Revenue (TTM)	₹2.12b

11.3x

P/E Ratio

1.0x

P/S Ratio

Is 531727 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
531727 income statement (TTM)
Revenue	₹2.12b
Cost of Revenue	₹918.63m
Gross Profit	₹1.21b
Other Expenses	₹1.02b
Earnings	₹188.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.69
Gross Margin	56.76%
Net Profit Margin	8.85%
Debt/Equity Ratio	31.3%

How did 531727 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 531727 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 531727?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 531727. This is calculated by dividing 531727's market cap by their current preferred multiple.
What is 531727's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹2.13b

531727 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 531727's PE Ratio compare to its peers?

531727 PE Ratio vs Peers

The above table shows the PE ratio for 531727 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	65.5x

Forward PE

Price-To-Earnings vs Peers: 531727 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (65.5x).

Price to Earnings Ratio vs Industry

How does 531727's PE Ratio compare vs other companies in the Indian Auto Components Industry?

Price-To-Earnings vs Industry: 531727 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the Indian Auto Components industry average (21.9x)

Price to Earnings Ratio vs Fair Ratio

What is 531727's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

531727 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 531727's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 531727 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 531727 (₹41.8) is trading above our estimate of fair value (₹6.7)

Significantly Below Fair Value: 531727 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531727's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.8%

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 Menon Pistons 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.

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Check out Menon Pistons's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Menon Pistons competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Menon Pistons performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 531727 has a high level of non-cash earnings.

Growing Profit Margin: 531727's current net profit margins (8.8%) are higher than last year (6.5%).

Past Earnings Growth Analysis

Earnings Trend: 531727's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 531727's earnings growth over the past year (110.4%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: 531727 earnings growth over the past year (110.4%) exceeded the Auto Components industry 33.8%.

Return on Equity

High ROE: 531727's Return on Equity (19.5%) is considered low.

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Financial Health

How is Menon Pistons's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 531727's short term assets (₹950.3M) exceed its short term liabilities (₹405.8M).

Long Term Liabilities: 531727's short term assets (₹950.3M) exceed its long term liabilities (₹211.2M).

Debt to Equity History and Analysis

Debt Level: 531727's net debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: 531727's debt to equity ratio has increased from 20.7% to 31.3% over the past 5 years.

Debt Coverage: 531727's debt is not well covered by operating cash flow (4.4%).

Interest Coverage: 531727's interest payments on its debt are well covered by EBIT (18.6x coverage).

Balance Sheet

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Dividend

What is Menon Pistons's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 531727's dividend (1.79%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: 531727's dividend (1.79%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: 531727's dividend payments have been volatile in the past 10 years.

Growing Dividend: 531727's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.3%), 531727's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 531727 is paying a dividend but the company has no free cash flows.

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Management

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

4.8yrs

Average board tenure

CEO

Sachin Menon (58 yo)

no data

Tenure

₹7,906,000

Compensation

Mr. Sachin Ram Menon serves as the Managing Director of Menon Pistons Ltd. He has been Executive Director of Menon Pistons Ltd. since June 15, 1991.Mr. Menon has been Chairman at Menon Pistons Limited si...

CEO Compensation Analysis

Compensation vs Market: Sachin's total compensation ($USD101.01K) is above average for companies of similar size in the Indian market ($USD38.38K).

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

Board Members

Experienced Board: 531727's board of directors are considered experienced (4.8 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31