Menon Bearings

Kolhapur based auto ancillary maker Menon Bearings, announced a revenue of Rs. 26.7 crore for Q1FY16 versus Rs. 26.2 crore in Q4FY15 and Rs. 23.9 crore in Q1FY15. Despite the quarter gone by being dull for the auto sectors, company has not let margins slip, wherein EBITDA margin stood at 23.2% (22.6% for FY15) and net margins at 11.3% (same as FY15). EPS for Q1FY16 stood at Rs. 0.64, vis-à-vis Rs. 2.47 for FY15.

Thus, the share is currently ruling at a PE multiple of less than 15 times, its current year earnings. On networth of Rs. 43 crore, it has very low net debt of less than Rs 8 crore, as of 31-3-15. Promoter holding of 74.67%, healthy margins and consistent financial performance make the share s good auto ancillary play.