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Menon Bearings – Multibagger Analysis

Menon Bearings – Multibagger Analysis

Menon Bearings Ltd. established in 1991, is one of the few companies in the continent having fully integrated manufacturing facilities under one roof, to produce a wide range of critical auto components like bi-metal Engine bearings, Bushes & Thrust Washers for light & heavy automobile engines, two wheeler engines as well as for compressors, refrigerators, air conditioners etc. MBL is Listed on the BSE ( Bombay Stock Exchange ) & is globally positioned with business activities spanning 24 countries around the globe. Exporting 35 % of its production capacity, with exports growth at more than 25 % per annum, the engineering capabilities at MBL enjoys strong brand equity among leading OEMs all over the world.

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Company URL: http://www.menonbearings.in/

Screener URL: http://www.screener.in/company/523828

CMP: 121.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes.image
Durable Competitive Advantage Moderate.image
Future Growth DriversGood.image
Conservative Debt (long term debt < 3 Net Profit)Yes.image
Debt Equity Ratio, Current Ratio0.55image
Return on Equity must be Above Average18%image
Low CAPEX required to maintain current operationsModerate to High.image
Management is holding / buying the stockPromoter Holding 75%, Flatimage
Price is Under Valued (< intrinsic value)Yesimage
Stock Price is consolidating (now)Moderate.image
Stock Price is growing in past years along with EPS growthYes.image

Additional Futurecaps Checklist

Consolidated PE, PB RatioPE 18; PB 3image
Cash Flow Positive, Net Profit % greater than 8%Yes. Yes.image
Paying Dividends, TaxYesimage
EPS Growth Rate30% average.image
Jump in Trailing Result EPSYes. 50%.image
Jump in Quarterly Result EPSYes. 100%.image
Expected Gain in 5 Years8-10 times.image
Price Movement Graph, 52 Week High & Low132.00/28.00image
Volume Analysis15000image
Power of BrandModerate.image
Corporate Governance, Reputation of LeadersYes.image
Fraud reportedNot in current search.image
Read Analysis Report for Future Plans, Capacity expansionNo serious expansion plans on card.. LINKimage

Declaration

Based on the value & growth factors, we declare the company as a moderate Multibagger.  But as the PE is 18 we prefer to invest at lower levels.

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Allocation

2-3% of portfolio.

Disclaimer

Futurecaps recommends 100 to 150 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

NEVER MISS our 5-Paid-Multibaggers which are Hand-picked using Warren Buffet strategies!

3 Replies to “Menon Bearings – Multibagger Analysis”

  1. What do you think is the fall for amtek auto..??
    Has been falling as if there is no end..
    Can we enter @ Cmp..
    pls suggest.

  2. Coral Labs was posted on 29th Nov as a Multibagger now on Dec 6th it has been removed from your site. I purchased based on your recommendation now I am confused if reliable.

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