Munjal Auto

The company posted a disappointing set of numbers for Q3FY15, with its net profit for the quarter coming in 44% (YoY) lower at Rs.7.58 crore. This can be attributed to flat sales, 22% jump in excise duty outgo, a 75% rise in interest cost and an over 4 times increase in taxation. EBITDA was down 11% at Rs.16 crore and margins fell from 8.87% to 7.8%.

The company which makes shock absorbers had a weak quarter. But overall it continues to remain strong. A part of the Hero group, 26% stake is held by Japanese group Showa and 39% by Munjal family – total promoter stake is 69%. Its manufacturing plant is in Gurgaon, supplying to almost OEMs in India. The company’s equity stands at Rs.10 crore and reserves is at Rs.176 crore, market cap is at Rs.302 crore. Face value stands at Rs.2/share.