Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

• Market Cap: ₹7.43B
• Dividend Yield: 1.32%
• Average Volume (3M): 17.42K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.20
• Revenue Growth: 9.81%
• EPS Growth: -5.62%
• Country: IN
• Employees: 852
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 5,359
• 30 Day Avg. Volume: 17,416
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹82.00
• Price Target Upside: 10.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹82.00 ▲(10.29% Upside)

Munjal Auto Industries faces profitability and cash flow challenges despite solid revenue growth and a stable balance sheet. The technical indicators show weak momentum, but the valuation is reasonable with a decent dividend yield. Overall, the stock exhibits moderate risk with some growth potential if financial stability issues are addressed.

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 solid revenue growth and a stable balance sheet with moderate leverage. However, declining profitability and negative free cash flow present significant risks to financial stability.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.66B	19.84B	18.82B	18.98B	21.15B
Gross Profit	3.43B	4.78B	4.71B	2.66B	2.31B
EBITDA	1.36B	1.50B	1.40B	879.22M	876.08M
Net Income	363.91M	561.35M	384.90M	267.94M	206.28M
Balance Sheet
Total Assets	12.37B	12.76B	12.18B	9.61B	8.96B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.19B	1.76B	1.20B	415.76M
Total Debt	3.50B	2.82B	2.76B	1.16B	1.47B
Total Liabilities	8.09B	8.81B	8.07B	6.09B	5.74B
Stockholders Equity	4.16B	3.84B	4.01B	3.37B	3.11B
Cash Flow
Free Cash Flow	-542.34M	51.97M	861.40M	1.20B	327.77M
Operating Cash Flow	118.49M	345.81M	1.27B	1.37B	477.06M
Investing Cash Flow	-116.33M	371.31M	-772.52M	-992.65M	-141.65M
Financing Cash Flow	6.97M	-648.93M	-525.50M	-503.47M	-338.99M

Munjal Auto Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.35
• 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 74.35 is below the 20-day moving average (MA) of 76.11, below the 50-day MA of 76.81, and below the 200-day MA of 86.41, indicating a bearish trend. The MACD of -1.18 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 21.53 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
MUNJALAU	65 Neutral	₹7.43B	20.43		1.32%	9.81%	-5.62%
Sector *	64 Neutral	€7.28B	16.38	11.67%	3.51%	0.79%	-60.56%
REMSONSIND	63 Neutral	₹4.32B	28.22		0.26%	26.47%	-4.53%
SFL	59 Neutral	₹72.12B	125.39		―	9.66%	-69.75%
SHIVAMAUTO	46 Neutral	₹3.66B	―		―	-3.34%	-61.12%