Menon Bearings up 5% on stable Q1 margins
Shares of Kolhapur based auto ancillary maker Menon Bearings, bearing face value Re 1 each, are up nearly 5% at Rs. 43.60, with surging volumes of 66,000 traded shares on NSE (highest in 2 weeks) and 22 lakh on BSE (over four times the 2 week average quantity of 51,000 shares). Share price is just tad lower than its 52 week high price of 48.40 made on 5th May 2015.
Company has just announced financial results for Q1FY16, wherein revenue came in at Rs. 26.7 crore, 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.