Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

• Market Cap: ₹7.50B
• Dividend Yield: 1.24%
• Average Volume (3M): 105.57K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.00
• Revenue Growth: 13.34%
• EPS Growth: -26.93%
• Country: IN
• Employees: 852
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.35
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹74.00 ▼(-11.50% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows strong revenue growth and a stable balance sheet, profitability pressures and negative cash flow are concerning. Technical indicators suggest bearish momentum, further impacting the score. Valuation metrics indicate moderate pricing, but do not significantly offset the other challenges.

Positive Factors

Revenue Growth

Sustained top-line expansion across fiscal years indicates durable demand from OEM customers and successful program wins. Persistent revenue growth supports higher capacity utilization, spreads fixed costs, and provides a platform to invest in tooling and product development that can compound over multiple quarters.

Balance Sheet Strength

Moderate leverage and a healthy equity base provide financial flexibility to fund capex or absorb industry cycles. A 0.84 D/E and 33.6% equity ratio reduce refinancing risk, enabling the company to sustain supplier and warranty obligations and invest in manufacturing without immediate liquidity pressure.

OEM-focused Business Model

Long-term OEM supply relationships create recurring, contract-driven revenue with high switching costs and quality barriers. This model supports predictable order flow, scale advantages in engineered metal components, and the opportunity to capture multi-year program content as vehicle models refresh.

Negative Factors

Declining Profit Margins

Material margin erosion signals structural cost or pricing pressure that undermines profitability even as sales rise. Persistently thinner gross and net margins reduce cash available for reinvestment, compress returns on new programs, and make the business more vulnerable to raw material or wage inflation over several quarters.

Negative Free Cash Flow

A large drop into negative FCF suggests heavier capex or weaker cash conversion, stressing liquidity and increasing reliance on financing. Over months this can constrain growth investments or require working capital support, raising the likelihood of covenant pressure or higher-cost funding if the trend persists.

Earnings and ROE Pressure

Significant EPS decline and lower ROE reflect weakening profitability and capital efficiency. If sustained, declining returns impair the company’s ability to fund dividends, attract investment, and justify new program investments, affecting long-term shareholder value and strategic options.

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 highlight profitability pressures and potential liquidity issues.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.09B	20.66B	18.82B	19.84B	19.16B	21.15B
Gross Profit	4.69B	3.43B	1.62B	4.78B	2.66B	2.31B
EBITDA	1.53B	1.36B	1.40B	1.45B	879.22M	876.08M
Net Income	330.60M	363.91M	384.90M	561.35M	267.94M	206.28M
Balance Sheet
Total Assets	13.02B	12.37B	12.18B	12.76B	9.61B	8.96B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.42B	1.76B	1.13B	1.20B	415.76M
Total Debt	3.95B	3.50B	2.76B	2.82B	1.16B	1.47B
Total Liabilities	8.52B	8.09B	8.07B	8.81B	6.09B	5.74B
Stockholders Equity	4.32B	4.16B	4.01B	3.84B	3.37B	3.11B
Cash Flow
Free Cash Flow	-564.81M	-542.34M	861.40M	51.97M	1.20B	327.77M
Operating Cash Flow	-179.57M	118.49M	1.27B	345.81M	1.37B	477.06M
Investing Cash Flow	-78.58M	-116.33M	-772.52M	371.31M	-992.65M	-141.65M
Financing Cash Flow	199.25M	6.97M	-525.50M	-648.93M	-503.47M	-338.99M

Munjal Auto Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 83.62 is above the 20-day moving average (MA) of 79.06, above the 50-day MA of 77.34, and above the 200-day MA of 82.26, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 44.53 is Neutral, 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
MUNJALSHOW	66 Neutral	₹4.84B	11.32	―	3.69%	―	―
REMSONSIND	65 Neutral	₹3.18B	20.06	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MUNJALAU	56 Neutral	₹7.50B	14.78	―	1.24%	13.34%	-26.93%
SFL	54 Neutral	₹55.69B	30.61	―	―	4.98%	-62.09%
FILATFASH	53 Neutral	₹1.42B	1,157.51	―	―	9.68%	-15.18%
SHIVAMAUTO	45 Neutral	₹2.04B	-3.18	―	―	-11.18%	-22.17%

Munjal Auto Industries Limited Corporate Events

Munjal Auto Industries Reports Strong Financial Performance for Q2 2025

Munjal Auto Industries Limited, a company involved in the automotive industry, announced the approval of its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025, during its 205th Board meeting. The results indicate a total income increase compared to the previous quarter, with a notable profit after tax, reflecting the company’s stable financial performance. This announcement is significant for stakeholders as it demonstrates the company’s continued growth and resilience in the competitive automotive sector.