Munjal Showa Limited (MUNJALSHOW) AI Stock Analysis

• Market Cap: ₹4.82B
• Dividend Yield: 3.69%
• Average Volume (3M): 2.42K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 2,179
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.73
• Shares Outstanding: 39,995,000
• 10 Day Avg. Volume: 3,899
• 30 Day Avg. Volume: 2,416
• PEG Ratio: -2.42
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 12.66
• 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: 66 Neutral
• Price Target: ₹135.00 ▲(7.66% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by a very strong, debt-free balance sheet that reduces risk, offset by inconsistent profitability and historically volatile cash generation. Technical indicators are neutral-to-weak with negative MACD and price below key longer-term averages, while valuation is supported by a moderate P/E and a solid dividend yield.

Munjal Showa Limited Business Overview & Revenue Model

Company Description

Munjal Showa Limited manufactures and sells auto components for the two-wheeler and four-wheeler industry primarily in India. Its products comprise front forks, rear cushions, shock absorbers, struts, gas springs, rear door lifters, and window balancers. Munjal Showa Limited was incorporated in 1985 and is based in Gurugram, India.

How the Company Makes Money

The company makes money primarily by manufacturing and selling suspension and damping components (notably shock absorbers/struts and related assemblies) to automotive OEM customers as part of their vehicle production programs. Revenue is typically generated on a per-unit basis through long-term supply arrangements tied to specific vehicle models/platforms, where pricing, volumes, and quality/validation requirements are aligned with OEM production schedules. A secondary revenue stream comes from selling replacement parts into the automotive aftermarket, where demand is driven by vehicle parc size and wear-and-tear replacement cycles. The company’s earnings are influenced by vehicle production volumes in its served segments, product mix (two-wheeler vs four-wheeler and higher-value assemblies), raw material/input costs, manufacturing efficiency, and the ability to retain/expand OEM programs and distribution reach in the aftermarket. Specific partnership or customer concentration details are null.

Munjal Showa Limited Financial Statement Overview

Summary

Strong balance sheet with zero debt materially lowers financial risk (Balance Sheet Score 86). However, operating performance is uneven: revenue rebounded sharply in 2025 but margins are low and gross margin compressed, and cash flows have been volatile despite improvement in 2025 (Income Statement 63; Cash Flow 58).

Income Statement

Revenue has been volatile, with a strong rebound in 2025 (annual revenue growth ~69%) after a softer 2024. Profitability is positive but uneven: net margin sits in the low-single digits (~2–3%) and gross margin compressed sharply in 2025 versus 2024, indicating higher input costs and/or pricing pressure. Operating profitability also looks inconsistent across years, suggesting earnings quality is sensitive to cycle and cost structure.

Balance Sheet

The balance sheet is a key strength: the company reports zero debt across the periods shown, implying very low financial risk and high flexibility through cycles. Equity has been broadly stable-to-growing, and returns on equity are modest but positive (~4–5% recently), which is solid given the conservative leverage profile. The main weakness is that returns are not particularly high, pointing to room for efficiency or margin improvement.

Cash Flow

Cash generation is mixed. Operating cash flow and free cash flow improved in 2025, and free cash flow covered a large portion of net income (roughly ~84%), which is supportive. However, the track record shows volatility, including periods of negative operating cash flow (2021) and negative free cash flow (2023), indicating working-capital swings and/or uneven capital spending needs. Overall, cash flow is improving but not yet consistently steady year-to-year.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.41B	12.50B	11.73B	12.41B	10.60B	10.85B
Gross Profit	2.11B	1.48B	2.56B	2.19B	439.55M	559.95M
EBITDA	459.14M	471.72M	487.95M	541.50M	265.46M	478.70M
Net Income	259.02M	288.70M	307.66M	319.03M	121.50M	261.40M
Balance Sheet
Total Assets	8.45B	8.28B	8.11B	8.11B	7.86B	8.01B
Cash, Cash Equivalents and Short-Term Investments	3.01B	3.47B	2.82B	2.66B	2.60B	2.50B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.78B	1.54B	1.46B	1.59B	1.48B	1.60B
Stockholders Equity	6.67B	6.74B	6.64B	6.51B	6.37B	6.41B
Cash Flow
Free Cash Flow	-418.60M	351.79M	71.87M	-58.35M	224.25M	-228.54M
Operating Cash Flow	-393.93M	419.84M	114.19M	64.38M	299.40M	-175.43M
Investing Cash Flow	355.94M	-153.68M	186.78M	1.59M	-52.61M	428.05M
Financing Cash Flow	-179.16M	-179.86M	-180.35M	-180.77M	-180.64M	-181.19M

Munjal Showa Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUNJALSHOW	66 Neutral	₹4.82B	11.32	―	3.69%	―	―
REMSONSIND	63 Neutral	₹3.02B	20.06	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFL	54 Neutral	₹56.07B	30.61	―	―	4.98%	-62.09%
RACE	52 Neutral	₹1.90B	34.59	―	―	90.55%	20.25%
UCAL	51 Neutral	₹2.14B	-6.33	―	―	5.70%	-18.05%
SHIVAMAUTO	45 Neutral	₹2.11B	-3.18	―	―	-11.18%	-22.17%