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Wednesday, April 8, 2015
MENON BEARINGS LTD :- VALUE BUY
Today we are discussing Auto Parts & Equipment sector stock for medium to long term portfolio.
" MENON BEARINGS LTD"
At Menon Bearings Ltd., a company promoted by the Flagship of
Menon Group to manufacure world class thin walled bimetallic engine
Bearings, Bushes and Thrust Washers.
MBL manufactures a whole range of Bearings, Bushes & Thrust washers
for light and heavy automobile engines, two wheeler engines as well as
for Compressors & for refrigerators, air conditioners and other
types of internal combustion engines. It was started in India in 1992
and has sizable exports to the USA, UK, Israel, Turkey, France etc.
MBL supplies products to OEM customer as TELCO, Cummins India
Ltd, Mahindra & Mahindra, Maruti Udyog, L&T-John Deere,
Kirloskar Copeland, Bharat Forge, SKF India etc. and also to MACK Trucks
USA, Arrow Engine Co.Inc.USA with a present level of exports at 30% of
capacity. MBL is QS-9000 certified by LRQA â€“ UK since Nov, 2000.
Menon group is one of the largest original equipment supplier of some of
the most critical engine components faced to high combustion & high
friction, to the leading names in the Indian automobile industry.
Furthermore, automobiles exported out of India are fitted with Menon
components. Infact a number of companies including Cummins & Telco
have awarded us Ship to Use Certificates. No wonder, because at the
Menon Group quality & cost go hand in hand to provide some of the
most effective & critical solutions in auto component sourcing.
Menon Group of Companies includes :
MENON BEARINGS LTD.
Menon & Menon Ltd.
Menon Pistons Ltd.
Menon Pistons Rings Ltd.
Menon Metalliks Pvt. Ltd.
QUALITY SYSTEM OF MBL :
Quality at MBL is an on going process. It is an attitute we inculcate
via continous & comprehensive training. MBL has a full fledged
Quality Assurance Department with dedicated staff of trained personnel
for implementing & maintaining quality assurance system &
practices. We have a well equipped & well layed out Metrological
& Chemical Lab in place to assure Product Quality at all stages of
Manufacturing to customers end as per customers requirements.
Statistical Quality control techniques are applied for key Processes
& Product characteristics areas for ongoing improvements in
reduction in variation.
We have received ship to use certifications from Cummins India Ltd. & TELCO.
But our ethos does not allow us to be content or to rest on our laurels.
Our inclination to accept new challenges is a motivating factor behind
the process of continuous
Promoter holding 74.67% stake in 4.67cr paid up equity capital, company reported 8cr bottom line in first 3quarter of 2014-15 year, expected 12cr bottom line in this year. Menon is a regular dividend paying company with book value of 38.5, industry PE 46.5 but menon trading just 12 PE in forward. Company announced stock split 5rs to 1 re stock (fixed record date 09/04/2015) after stock split one can expect better volume in this counter.
Investor can buy @ current market price of 150.00 stock trading both NSE and BSE , stock may cross 50 mark after stock split in medium term. One can buy and hold this stock in portfolio, This stock can give low risk good return in portfolio.
Details of company click HERE Company results HERE
Disclosure :- I am holding this stock in my medium term portfolio.