Munjal Showa Limited (MUNJALSHOW) was incorporated in 1985 and established in 1987 as a result of technical and financial collaboration between the Hero Group and Showa Corporation, Japan. The Japanese Showa Corporation holds a 26% equity stake in the company, making this partnership a strategic alliance in the Indian automotive components sector.
Munjal Showa Limited operates as an ancillary manufacturer of auto components for the two-wheeler and four-wheeler industry. The Company's primary products include front forks, shock absorbers, struts, gas springs, and window balancers for sale in the domestic market. It supplies shock absorbers to auto giants in India, Japan, Germany, the United States, and the United Kingdom, amongst other developed markets.
The company operates through three manufacturing locations at Gurugram, Manesar, and Haridwar. Their 24075 sq. mt. Gurgaon plant conforms to QS 9000, ISO 14001, and ISO 9001 standards of safety, comfort, and quality. MSL is an ISO 9002, QS 9000, and ISO 9001 certified company which operates as an ancillary and manufactures auto components for the two-wheeler and four-wheeler industry. Its primary products are front forks, shock absorbers, struts, gas springs, and window balancers.
Its products serve as original equipment to a range of Maruti Suzuki upper-end cars and export models, Honda City cars, the complete range of Hero Honda Motorcycles, Kawasaki Bajaj Motorcycles, Kinetic Scooters, Hero range of mini-motorcycles and mopeds, and Honda Motorcycles and Scooters India (Pvt) Limited. The company has established itself as a reliable supplier to major automotive manufacturers across different vehicle segments.
The market cap of Munjal Showa Ltd (MUNJALSHOW) is ₹461.74 Cr as of March 10, 2025. The company has shown mixed financial performance in recent quarters. Munjal Showa's standalone net sales for March 2025 reached Rs 302.89 crore, up 2.92% year-on-year. Net profit increased by 14.04% to Rs 8.92 crore, while EBITDA rose 22.61% to Rs 15.78 crore. EPS improved to Rs 2.23 from Rs 1.96.
- Q4 FY25 (March 2025): Revenue ₹302.89 Cr, Net Profit ₹8.92 Cr
- Q3 FY25 (December 2024): Net profit declined 30.79% to ₹5.98 crore as against ₹8.64 crore in December 2023. Sales rose 5.20% to ₹319.08 crore as against ₹303.32 crore in December 2023.
- Q2 FY25 (September 2024): Net profit rose 33.12% to ₹2.05 crore as against ₹1.54 crore in September 2023. Sales rose 10.60% to ₹317.72 crore as against ₹287.26 crore in September 2023.
- Q1 FY25 (June 2024): Net profit declined 6.58% to ₹11.92 crore as against ₹12.76 crore in June 2023. Sales rose 7.95% to ₹310.75 crore as against ₹287.87 crore in June 2023.
- 52-Week High: ₹192.63
- 52-Week Low: ₹106.04
- P/E Ratio: 15.01
- P/B Ratio: 0.70
- Dividend Yield: 3.90%
- Dividend Payout: 59.1% (historical)
- Recommended Dividend: ₹4.5 per equity share (subject to shareholder approval)
The company has been maintaining a healthy dividend payout, demonstrating its commitment to shareholder returns.
Challenges:
- Poor sales growth of -0.59% over the past five years.
- Revenue growing at a yearly rate of -6.54% over the last 5 years, versus industry average of 8.27%.
- Low return on equity of 4.05% over the last 3 years.
Opportunities:
- Maintains financial stability with almost debt-free operations.
- Positioned well for future growth opportunities in the expanding Indian automotive market.
- Promoter Holding: 65.02% (as of March 2025)
- FII Holding: 1.8% (as of last reported quarter)
- Public Holding: 33.2% (as of last reported quarter)
Promoter holding indicates strong promoter confidence in the company.
The company is chaired by Yogesh Chander Munjal. The board has recently appointed Mr. Neeraj Munjal and Mr. Tetsuya Katsumata as non-executive directors, and Mr. Abhaya Shankar as an independent director.
Munjal Showa Limited continues to leverage its strong technical collaboration with Showa Corporation Japan and its established relationships with major automotive OEMs to maintain its position in the Indian auto components industry, despite facing headwinds in revenue growth over recent years.
