Wednesday, April 8, 2015

MENON BEARINGS LTD :- VALUE BUY

Dear friends,


  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 – UK since Nov, 2000.

Menon Groups

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 Exports
  • Menon Metalliks Pvt. Ltd.
  • Menon Automobiles.
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.


 











5 comments:

  1. Feeling relief after waiting for more than 2months.
    Thanq sir

    ReplyDelete
  2. HoldingMBL. Very good fundamental.

    ReplyDelete
  3. Great pick Sir. Thanks a lot for sharing this with us.

    ReplyDelete
  4. MBL is going with all cylinders firing. Great call sir.

    ReplyDelete