At a Glance
Munjal Showa, the shock absorber king under the Hero Group, is itself in shock. With a P/E of 124x, a dividend yield of 3.1%, and profits flatlining like an ECG, the stock is trading more on nostalgia than numbers. FY25 profit fell to ₹29 Cr from ₹70 Cr a decade ago. Yet, the stock sits at ₹145, cheaper than book value but more expensive than logic.
Introduction
Think of Munjal Showa as that old bike in the garage: still running, but only because it refuses to die. Established in 1985, it supplies front forks, shock absorbers, and gas springs to two and four-wheeler OEMs. Collaborating with Hitachi Japan, it had tech advantage, but with Hero MotoCorp slowing and EV adoption rising, the company seems stuck in neutral.
To top it off, a series of tax demands (₹12–50 Cr) and CRISIL downgrades have thrown more sand into the engine. Investors are hanging around only for the dividends, not the thrill.
Business Model (WTF Do They Even Do?)
MSL designs and manufactures suspension systems for motorcycles, scooters, and some four-wheelers. Hero MotoCorp is its main client, making
