1. At a Glance
This ₹700 Cr small-cap makes thrust washers and bushings—basically the stuff you ignore in an engine until it fails. But with Q1 PAT up 37%, OPM recovering to 19.2%, and a fat export order from Allison Transmission USA, this baby’s revving louder than you think.
2. Introduction with Hook
Imagine a wedding where no one notices the caterer—until the food explodes with flavor. That’s Menon Bearings in the auto ecosystem. Hidden, crucial, and now getting international RSVP invites.
- FY25 PAT: ₹25 Cr, steady as a piston
- Q1 FY26 EPS: ₹1.50 (up 36%)
Not a unicorn. More like a trusty tractor that refuses to die.
3. Business Model (WTF Do They Even Do?)
Menon Bearings makes:
- Engine Bearings
- Bushes
- Thrust Washers
- Aluminium Die Cast Parts
Basically, if it rotates and doesn’t explode, these guys probably supplied something. They sell to auto OEMs, heavy-duty diesel engine makers, and now even export to the US.
Think of them as the orthopedic surgeon of engines—quiet, precise, essential.
4. Financials Overview
Q1 FY26 Snapshot:
Metric | Value (₹ Cr) | YoY Growth |
---|---|---|
Revenue | 67.21 | +21% |
Operating Profit | 12.92 | +36% |
Net Profit | 8.43 | +37% |
OPM | 19.2% | Up 72 bps |
EPS | ₹1.50 | +36% |
Margins aren’t jaw-dropping, but they’re consistent. Like a Maruti 800—may not win races, but always gets you there.
5. Valuation
Metric | Value |
---|---|
CMP | ₹128 |
P/E | 28.8x |
Book Value | ₹28.3 |
P/B | 4.53x |
ROE | 16.4% |
Fair Value Range:
- P/E (20–25x FY26E EPS ₹6): ₹120 – ₹150
- P/B (3.5–4x Book Value): ₹99 – ₹113
So it’s not screaming cheap, but if Q2+Q3 deliver, it could coast into higher gears.
6. What’s Cooking – News, Triggers, Drama
- USD 3.73M annual order from Allison Transmission (USA)
- 75 lakh parts/year = recurring revenue
- Commercial production started at new facility (Q2 impact ahead)
- Aluminium division spun off to a subsidiary via slump sale = possible unlocking of value
- Dividend yield: 1.79% and healthy payout (~45%)
Basically: zero masala drama, all boring execution. Aka, value investor porn.
7. Balance Sheet
Item | Mar 2025 (₹ Cr) |
---|---|
Equity Capital | 6 |
Reserves | 153 |
Borrowings | 43 |
Total Liabilities | 231 |
Net Worth | ₹159 Cr |
Debt/Equity | 0.27x |
Not debt-free, but the balance sheet looks like it just had a protein shake. No red flags, just consistent growth.
8. Cash Flow – Sab Number Game Hai
Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) | Net Cash |
---|---|---|---|---|
FY23 | +50 | -23 | -23 | +4 |
FY24 | +28 | -19 | +4 | +13 |
FY25 | +27 | -26 | -7 | -6 |
Capex cycle ongoing (new facility), but operations funding everything. This isn’t a Ponzi scheme—this is the real economy.
9. Ratios – Sexy or Stressy?
Ratio | Value |
---|---|
ROE | 16.4% |
ROCE | 19.8% |
OPM | 19.2% |
P/E | 28.8x |
D/E | 0.27x |
Not “sexy” by CNBC standards. But if you like low-beta, high-efficiency compounding, this is your Tinder match.
10. P&L Breakdown – Show Me the Money
Year | Revenue (₹ Cr) | Profit (₹ Cr) | EPS (₹) |
---|---|---|---|
FY23 | 219 | 33 | 5.82 |
FY24 | 213 | 24 | 4.35 |
FY25 | 239 | 25 | 4.45 |
TTM | 249 | 27 | 4.86 |
Flat FY24, but FY25 shows recovery. If export orders scale, FY26 could see EPS of ₹6+
11. Peer Comparison
Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
---|---|---|---|
Bosch | 18,087 | 2,012 | 55.3 |
Schaeffler | 8,337 | 1,015 | 63.0 |
Uno Minda | 16,775 | 934 | 66.7 |
Bharat Forge | 15,123 | 923 | 62.2 |
Menon Bearings | 249 | 27 | 28.8 |
Smallest on the list. But the only one with sub-30 P/E and consistent 16% ROE. The nerd in the group project who actually did the work.
12. Miscellaneous – Shareholding, Promoters
Category | Mar ’23 | Jun ’25 |
---|---|---|
Promoters | 71.25% | 68.44% |
FIIs | 1.64% | 0.45% |
Public | 27.10% | 31.11% |
- Promoter holding dipped a little, but still dominant
- FIIs ghosted (again), but retail is stepping in
- Total shareholders rising = discovery in progress
13. EduInvesting Verdict™
Menon Bearings is like the disciplined middle child—never makes headlines, never misses dinner, and always scores 90+. Recent export wins, solid margins, and a new plant in action make this a quiet compounder in the auto universe.
“You won’t hear it roar, but you’ll thank it for keeping the engine alive.”
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Menon Bearings Ltd, Auto Components, Bearings, EduInvesting Premium, Smallcap, Exports, Kolhapur Compounding