CMP - 188.10. MCap - 752.40 Crs
P/E - 9.90, P/BV - 2.00
Dividend Yield - 1.63%
Established in 1985, in technical and financial collaboration with Showa Corporation of Japan, the pioneering global leaders in the manufacture of shock absorbers, Munjal Showa Limited is a member of Hero Group, a US $1.3 billion manufacturing conglomerate, with a 45-year history. Promoter holding stands at 65.02% (including 26% holding of Showa Corporation). Company designs and manufacturers shock absorbers and struts for leading two-wheelers and fourwheelers. MSLâs manufacturing plant is spread over an area of 24,075 sq mt in the industrial area of Gurgaon, Haryana, on the outskirts of the National Capital Territory of Delhi, another manufacturing plant is situated at Haridwar. India Munjal Showa Limited is one of the largest suppliers of shock absorbers to major auto giants in India, Japan, Germany, the United States and the United Kingdom, amongst other developed markets.
Financials
)- Company is virtually debt free now. They have reduced the debt to 0 in 2014 from
-Company is delivering since last many years consistenetly in terms of Sales growth, profit growth and RoE. Weighted RoE of last 5 years stands at 21.38%.
)- EPS for FY14 is 17.42
)- Working capital has increased significantly in FY14 to 92.67 from 29.40 in FY13. Though don’t know the reasons behind that in detail. If seniors can throw some light on this than it will be great.
Pros
)- Major customers of company are in the expansion mode which is the opportunity for the company.
)- Good clientele (Hero, Maruti, Scooters, etc) which will keep on growing provides the good platform for Munjal showa to serve.
Want the views of Seniors/Other members on the prospects of company.
I am holding this stock 130 levels.