Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

• Market Cap: ₹10.38B
• Dividend Yield: 0.96%
• Average Volume (3M): 112.25K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.11
• 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: 199,044
• 30 Day Avg. Volume: 112,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹85.00
• Price Target Upside: -18.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹85.00 ▼(-18.08% Downside)

Munjal Auto Industries' stock score is primarily influenced by its strong revenue growth and stable balance sheet, though profitability pressures and negative cash flow are concerns. Technical indicators suggest cautious sentiment, while valuation metrics show moderate attractiveness.

Munjal Auto Industries Limited Business Overview & Revenue Model

Company Description

Munjal Auto Industries Limited (MUNJALAU) is a leading Indian manufacturer in the automotive sector, primarily engaged in the production of exhaust systems, spoke rims, and fuel tanks for two-wheelers and four-wheelers. As a prominent player in the auto component industry, Munjal Auto Industries serves major automotive manufacturers, contributing to the supply chain with its high-quality and durable products.

How the Company Makes Money

Munjal Auto Industries Limited generates revenue through the manufacturing and sale of automotive components, such as exhaust systems, fuel tanks, and spoke rims. The company caters to major automotive manufacturers, establishing long-term supply contracts that form the backbone of its revenue streams. By maintaining strong partnerships with key players in the automobile industry, Munjal Auto ensures a steady flow of orders and income. Additionally, the company focuses on operational efficiency and innovation to maintain competitive pricing and quality, further solidifying its market position and financial performance.

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 pressures 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	19.61B	20.66B	18.82B	19.84B	18.98B	21.15B
Gross Profit	4.81B	3.43B	4.71B	4.78B	2.66B	2.31B
EBITDA	1.68B	1.36B	1.40B	1.50B	879.22M	876.08M
Net Income	552.80M	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	1.48B	1.42B	1.76B	1.19B	1.20B	415.76M
Total Debt	0.00	3.50B	2.76B	2.82B	1.16B	1.47B
Total Liabilities	-4.21B	8.09B	8.07B	8.81B	6.09B	5.74B
Stockholders Equity	4.21B	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: Positive
• Last Price: 103.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUNJALAU, the sentiment is Positive. The current price of 103.76 is above the 20-day moving average (MA) of 93.06, above the 50-day MA of 83.88, and above the 200-day MA of 81.04, indicating a bullish trend. The MACD of 4.69 indicates Negative momentum. The RSI at 75.15 is Negative, neither overbought nor oversold. The STOCH value of 77.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MUNJALAU	67 Neutral	₹10.38B	25.62	―	0.96%	8.73%	0.25%
REMSONSIND	67 Neutral	4.27B	27.87	11.44%	0.25%	26.47%	-4.62%
SFL	65 Neutral	72.52B	126.09	3.17%	―	9.66%	-69.75%
SHIVAMAUTO	51 Neutral	4.08B	-7.14	-152.60%	―	-9.04%	-10.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%