Munjal Auto Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are covered by earnings (1.6x coverage).
• Munjal Auto Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Munjal Auto Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Munjal Auto Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Munjal Auto Industries is profitable, therefore cash runway is not a concern.
• Munjal Auto Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (76.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.1x debt.
• Munjal Auto Industries's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (33.8% vs 30.5% today).
• Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
• Munjal Auto Industries's level of debt (30.5%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The average tenure for the Munjal Auto Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Sudhir Kumar's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Sudhir Kumar's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

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

past

Pros

• Munjal Auto Industries's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• Munjal Auto Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Munjal Auto Industries used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
• Munjal Auto Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Munjal Auto Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Munjal Auto Industries's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

value

Pros

• 520059 outperformed the Auto Components industry which returned -22.4% over the past year.
• 520059 outperformed the Market in India which returned -14.5% over the past year.
• BSE:520059 is up 23.9% outperforming the Auto Components industry which returned 13.2% over the past month.
• BSE:520059 is up 23.9% outperforming the market in India which returned 8% over the past month.

Cons

• Munjal Auto Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Munjal Auto Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Munjal Auto Industries is overvalued based on assets compared to the IN Auto Components industry average.
• Munjal Auto Industries is overvalued based on earnings compared to the IN Auto Components industry average.
• Munjal Auto Industries is overvalued based on earnings compared to the India market.