Menon Bearings Limited (MBL), part of the Kolhapur-based Menon Group, engages in the manufacture and sale of auto components in India. The company was incorporated in 1991 and is based in Kolhapur, India.
MBL specializes in critical moving engine components such as bi-metal engine bearings, bushes, and thrust washers. These components are designed for high-temperature, high-RPM, and high-pressure environments, commonly found in long-haul, heavy-duty diesel engines, multi-axle vehicles, and two-wheeler engines. Additionally, MBL produces aluminum die-casting components that serve diverse applications in engines, brakes, transmission, axles, steering, suspension, marine, power generation, and electrical systems. The company also manufactures compressors for refrigerators and air conditioners.
Menon Bearings has established itself as a key player in the automotive components sector, specializing in precision-engineered bearings and related components essential for the smooth functioning of various mechanical systems.
The company's extensive product portfolio includes:
- Bearing Products: Bearings for connecting rods, bearings for crank shafts, flanged bearings, and trimetal bearings.
- Bushes: Truncated bushes for connecting rods, ball indented bushes, bushes for connecting rods, cam shafts, rock shafts, and rocker arms.
- Aluminum Die-Cast Components: High-pressure aluminum die-cast and machined components such as motor end shields, compressor bearing connecting rods, engine components, gear case covers, and clutch assemblies; cylinder heads and brake parts; engine parts, portable tools, fuel pump parts, pressure and temperature transmitter parts, explosion proof parts, and gravity die cast parts.
MBL's products are utilized in various applications, including automotive engines, compressors, generators, stationary and marine engines, agricultural earthmovers, and tillers. The company's manufacturing capabilities extend across multiple product lines, catering to diverse industrial applications that require high-precision components.
Menon Bearings Ltd holds a significant position in the automotive components sector. As per Value Research classification, it is categorized as a Small Cap company, having carved out a niche in the market with its specialized product offerings.
The company's global footprint is substantial, with exports to countries including the United States, Japan, the United Kingdom, Italy, France, China, Mexico, Brazil, and Belgium. This international presence underscores Menon Bearings' ability to meet rigorous international quality standards and compete effectively in worldwide markets.
Menon Bearings Ltd has a market capitalization of ₹605 Crore as of April 23, 2025. The company has demonstrated consistent operational performance across various financial metrics.
- Q3 FY2024-25: Net profit remained constant at ₹5.47 crore in the quarter ended December 2024, mirroring the performance from the previous quarter ended December 2023. Sales rose 13.40% to ₹58.39 crore in Q3 FY2024-25, compared to ₹51.49 crore in Q3 FY2023-24.
- Q2 FY2024-25: Net profit rose 12.23% to ₹6.70 crore in the quarter ended September 2024, up from ₹5.97 crore in Q2 FY2023-24. The company demonstrated robust financial performance with a 17% increase in total income and strong EBITDA, PBT, and PAT growth of approximately 12%.
- P/B Ratio: 3.98 times as of April 23, 2025, a 6% premium to its peers' median range of 3.76 times.
- P/E Ratio: 25.25 times as of April 23, 2025, a 19% discount to its peers' median range of 31.00 times.
- Operating Revenue: ₹229.08 Crore on a trailing 12-month basis.
- Annual Revenue De-growth: -2% (indicating a need for improvement).
- Pre-tax Margin: 16% (considered strong).
- Return on Equity (ROE): 16% (considered good).
- Debt to Equity: 13%, signaling a healthy balance sheet.
- TTM Profit After Tax: ₹24 Crore.
On July 18, 2024, the Board of Directors of Menon Bearings announced an interim dividend of ₹2 per equity Share (i.e., 200%), subject to shareholder approval. The current dividend yield of Menon Bearings Ltd (MENONBE) is 2.27%.
Menon Bearings is strategically positioning itself for future growth, despite limited expansion opportunities in its traditional bearings division. Key initiatives include:
- EV Sector Opportunities: Exploring significant opportunities within the electric vehicle (EV) sector.
- Luxury Car Manufacturer Trials: Engaging in ongoing trials with luxury car manufacturers, signaling potential for future expansion into high-value segments.
- Strategic Restructuring: The separation of the Alkop division aims to enhance focus and profitability.
- Financial Health: Supported by a nearly debt-free status and a solid order book of ₹250 crores.
Management holds optimistic projections, expecting an 18% year-on-year growth over the next three years. This, alongside a proactive approach to exports and new product lines, positions the company favorably for sustained success.
- 52-Week High: ₹158
- 52-Week Low: ₹86
- Ticker Symbol: On the NSE exchange, Menon Bearings Ltd stocks are traded under the ticker MENONBE.
The stock has given a return of 6.7% in the last 3 years, demonstrating resilience in various market conditions and reflecting the company's stable business model and strategic positioning in the automotive components sector.
- Chairman: Nitin Menon
- Company Secretary: Siddheshwar Sunil Kadane
- Promoter Holding: 68.4%
The strong promoter holding indicates management confidence in the company's future prospects and ensures aligned interests with shareholders. The company continues to focus on operational excellence, strategic expansion, and maintaining its position as a reliable supplier of critical automotive components in both domestic and international markets.
