Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

• Market Cap: ₹9.07B
• Dividend Yield: 1.13%
• Average Volume (3M): 105.57K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.98
• Revenue Growth: 8.73%
• EPS Growth: 0.25%
• Country: IN
• Employees: 852
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.58
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 27,501
• 30 Day Avg. Volume: 105,568
• PEG Ratio: -3.52
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -12.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹100.00 ▲(13.61% Upside)

Munjal Auto Industries' overall stock score is primarily influenced by its strong revenue growth and stable balance sheet. However, declining profit margins and negative free cash flow pose significant risks. Technical indicators show mixed momentum, and the valuation suggests moderate pricing with a modest dividend yield.

Munjal Auto Industries Limited Business Overview & Revenue Model

Company Description

Munjal Auto Industries Limited manufactures and sells various parts and accessories for motor vehicles in India. It operates through Auto Components and Composite Products & Molds segments. The company offers exhaust systems, spoke wheel rims, and steel wheel rims for two-three wheelers, three-wheelers, and passenger cars; and fuel tank assemblies, seat structure systems, and other products for four-wheelers. It also provides sheet metal and tubular welded components. The company serves automotive, renewable energy, aerospace, defense, space, railways, and other engineering sectors. The company was incorporated in 1985 and is based in Gurugram, India. Munjal Auto Industries Limited is a subsidiary of Thakurdevi Investments Private Limited.

How the Company Makes Money

Munjal Auto Industries generates revenue through the production and sale of automotive components, which are supplied to leading automobile manufacturers. The company's revenue model is primarily based on direct sales of its products, including parts for motorcycles, scooters, and vehicles, which are sold both in bulk and as individual units. Key revenue streams include contracts with major automotive companies, aftermarket sales of auto parts, and potential exports to international markets. Additionally, strategic partnerships with vehicle manufacturers and participation in industry collaborations further reinforce its financial performance. Cost efficiency and scale in production also contribute to enhancing profit margins, allowing the company to compete effectively in the automotive components sector.

Munjal Auto Industries Limited Financial Statement Overview

Summary

Munjal Auto Industries shows strong revenue growth and a stable balance sheet with moderate leverage. However, declining profit margins and negative free cash flow indicate financial challenges that need addressing.

Income Statement

The company has shown a solid revenue growth from 2024 to 2025 by approximately 9.8%, indicating positive business momentum. However, the gross profit margin has declined from 25% in 2024 to 16.6% in 2025, suggesting increased costs or pricing pressures. Net profit margin also decreased to 1.76% from 2.04% in 2024, indicating challenges in maintaining profitability. EBIT and EBITDA margins reflect a resilient operational performance despite thinning margins.

Balance Sheet

Munjal Auto Industries maintains a stable financial position with a debt-to-equity ratio of 0.84 in 2025, reflecting moderate leverage. The equity ratio stands at 33.6%, indicating a strong capital structure. Return on Equity (ROE) decreased to 8.75% from 9.59% in 2024, highlighting a slight reduction in shareholder returns. Overall, the balance sheet is strong with manageable debt levels and a comfortable equity base.

Cash Flow

The company experienced a significant decline in free cash flow from a positive 861 million in 2024 to a negative 542 million in 2025, reflecting higher capital expenditures or operational challenges. The operating cash flow to net income ratio is low, indicating limited conversion of net income into cash flow. Free cash flow to net income ratio is negative, suggesting potential liquidity issues if the trend continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.47B	20.66B	18.82B	19.84B	19.16B	21.15B
Gross Profit	5.39B	3.43B	1.62B	4.78B	2.66B	2.31B
EBITDA	1.58B	1.36B	1.40B	1.50B	879.22M	876.08M
Net Income	404.98M	363.91M	384.90M	561.35M	267.94M	206.28M
Balance Sheet
Total Assets	0.00	12.37B	12.18B	12.76B	9.61B	8.96B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.42B	1.76B	1.13B	1.20B	415.76M
Total Debt	0.00	3.50B	2.76B	2.82B	1.16B	1.47B
Total Liabilities	-4.28B	8.09B	8.07B	8.81B	6.09B	5.74B
Stockholders Equity	4.28B	4.16B	4.01B	3.84B	3.37B	3.11B
Cash Flow
Free Cash Flow	0.00	-542.34M	861.40M	51.97M	1.20B	327.77M
Operating Cash Flow	0.00	118.49M	1.27B	345.81M	1.37B	477.06M
Investing Cash Flow	0.00	-116.33M	-772.52M	371.31M	-992.65M	-141.65M
Financing Cash Flow	0.00	6.97M	-525.50M	-648.93M	-503.47M	-338.99M

Munjal Auto Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 88.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUNJALAU, the sentiment is Negative. The current price of 88.02 is below the 20-day moving average (MA) of 92.90, below the 50-day MA of 94.19, and above the 200-day MA of 80.60, indicating a neutral trend. The MACD of -1.43 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MUNJALAU.

Munjal Auto Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REMSONSIND	69 Neutral	₹5.13B	33.54	―	0.22%	26.47%	-4.62%
SFL	64 Neutral	₹77.82B	127.34	―	―	4.98%	-62.09%
MUNJALAU	64 Neutral	₹9.07B	22.39	―	1.13%	8.73%	0.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHIVAMAUTO	51 Neutral	₹3.96B	-6.94	―	―	-9.04%	-10.81%