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Majestic Auto Ltd

NSE: MAJESAUTO BSE: 500267

295.55

(-0.86%)

Thu, 12 Mar 2026, 00:45 am

Majestic Auto Analysis

dividend

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Pros

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    Cons

    • 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.

    health

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    Pros

    • Majestic Auto is profitable, therefore cash runway is not a concern.
    • Majestic Auto is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (36.7%, greater than 20% of total debt).
    • The level of debt compared to net worth has been reduced over the past 5 years (67.7% vs 43.1% today).
    • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
    • Low level of unsold assets.
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    Cons

    • Majestic Auto's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Debt is not covered by short term assets, assets are 0.1x debt.
    • Majestic Auto's long term commitments exceed its cash and other short term assets.
    • Majestic Auto's level of debt (43.1%) compared to net worth is high (greater than 40%).

    management

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    Pros

    • Mahesh's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Majestic Auto management team is about average.
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    Cons

    • The average tenure for the Majestic Auto board of directors is less than 3 years, this suggests a new board.
    • Mahesh's remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

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

      past

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      Pros

      • Majestic Auto's 1-year earnings growth exceeds its 5-year average (41.2% vs 36.6%)
      • Majestic Auto has delivered over 20% year on year earnings growth in the past 5 years.
      • 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).
      • Majestic Auto's earnings growth has exceeded the IN Auto industry average in the past year (41.2% vs 5.5%).
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      Cons

      • Majestic Auto used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
      • Majestic Auto has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • Majestic Auto's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Majestic Auto's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Majestic Auto is good value based on assets compared to the IN Auto industry average.
      • 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.
      • BSE:500267 is up 28% outperforming the Auto industry which returned 10.7% over the past month.
      • BSE:500267 is up 28% outperforming the market in India which returned 8% over the past month.
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      Cons

      • 500267 underperformed the Auto industry which returned -17.2% over the past year.
      • 500267 underperformed the Market in India which returned -14.5% over the past year.

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