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Menon Pistons
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Menon Pistons Ltd was incorporated as a private limited company in Aug.'77 and was converted into a deemed public company in 1988. The company became a full-fledged public limited company in Nov.'94. Promoted by the late Chandran Menon and Ram Menon, the company was manufacturing pistons to cater to the need of small diesel engine manufacturers. Subsequently, it started supplying the high value added pistons required for the automobile industry and diesel engine sector. Later on, it added pistons required for cars, LCVs/HCVs, to its product line.
In year 1971, the Company manufactured their first engine piston. Their innovative solutions in automotive and off-highway engine applications and precision hydraulic systems act as catalysts towards our long-term association with esteemed OEM customers across the world, who are a testament to technological prowess that it has built over the years.
The Company is into manufacturing of auto components such as Pistons, Gudgeon Pins, Rings, Auto shafts required for commercial vehicles, tractors and heavy duty stationery engines. The market is divided into segments such as export market, replacement market, OEM market. The auto component manufacturers mainly cater to two types of buyers, i.e. the original equipment manufacturers (OEMs) and the Engine Overhauling segment. While demand in the former is dependent on the production of new vehicles, the later, i.e. the Engine Overhauling segment, is lucrative due to its size and unlike the OEM segment, it is not cyclical.
In Feb.'96, the company offered for sale 12,75,000 equity shares of Rs 10 each for cash at an offer price of Rs 90 per share aggregating Rs 1147.50 lac. The company recently undertook de-bottlenecking / balancing activities at its plants. The company undertook and completed an expansion in the capacity of Cummins Piston Line by replacement of some of the machines with imported machines from Taiwan, with an investment of over Rs.2 crores during 1998-99.
In 2007, the Company became the first to start manufacture of Forged Steel Pistons to the Heavy Horsepower Engines Segment. In 2011, it set up a Ductile Iron Foundry and Machine Shop, venturing into precision machined parts in exhaust management, lifting and tipping systems. In 2020, it expanded the product with manufacture of Valvetrain assemblies.
During the period 2021-22, the Company acquired 100% shares of Rapid Machining Technologies Private Limited and resulting the acquisition, it became the Wholly Owned Subsidiary of the Company. Similarly, it acquired 100% shares of Lunar Enterprise Private Limited and made it a Wholly Owned Subsidiary of the Company during 2022-23.
Menon Pistons share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Menon Pistons indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Menon Pistons is valued compared to its competitors.
Menon Pistons PE ratio helps investors understand what is the market value of each stock compared to Menon Pistons 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Menon Pistons evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Menon Pistons generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Menon Pistons in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Menon Pistons shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Menon Pistons compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Menon Pistons over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Menon Pistons helps investors get an insight into when they can enter or exit the stock. Key components of Menon Pistons Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Menon Pistons shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Menon Pistons ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Menon Pistons provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Menon Pistons highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Menon Pistons .
The balance sheet presents a snapshot of Menon Pistons ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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