Munjal Auto seems to have formed a double bottom and has broken out.
Before posting the chart, a brief write up on Munjal Auto.
- Munjal Auto is an Auto ancillarycompany and is the worlds largest manufacturer of exhaust systems.They also manufacture steel rim ,spoke rim and fuel tank
- Hero group company and promoter holding is 74.81%
- More than 90 % of sales is from exhaust system /mufflers
- PE of 12 and Debt to Equity of 0.4 and ROE of 28
- They have set up a plant recently and this plant is expected to bring in sales of 250 cr
- Hero Moto is the largest client.Other clients include Tata , Piagio, GM, Suzlon etc
- Technical partner is Samsung
- low commodity prices will protect the margins
- lowering interest rates will revive the auto sector in general
- increase in demand for exhaust systems and focus on pollution with augur well for the company
Now on to the double bottom breakout
Disc : Invested and my views might be biased.