Menon Bearings Ltd

Ticker: MENONBE
Decent 48/100

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Investing Reference

Price
116.62
Market Cap
653.54
Debt/Equity
0.2702
ROE %
16.438
PB
4.1220
Promoter %
68.442
Pledge %
0.000
1Y Rev Growth %
13.693
5Y Rev Growth %
NP Margin %
10.231
NP Margin 5Y Avg %

Trading Reference

1M Return %
-9.051
6M Return %
14.031
1Y Return %
-2.369
% Away 52W High
25.107
% Away 52W Low
35.605
Daily Volume
26660
Investment Verdict
Hold
Score 73/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 34/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Menon Bearings Ltd shows potential for growth with strong fundamentals but faces market volatility.

✅ Positives
  • Strong revenue growth over the past year
  • Diverse product portfolio enhances market reach
  • Robust demand in automotive sector

⚠️ Negatives
  • High competition in the bearings industry
  • Vulnerability to raw material price fluctuations
  • Recent decline in profit margins

Verdict
Cautiously optimistic about future performance.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 30/10/2025

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Business Overview

Menon Bearings Ltd is a leading manufacturer of high-quality bearings in India, catering to diverse industries such as automotive, aerospace, and machinery. With a commitment to innovation and excellence, the company serves both domestic and international markets, ensuring reliability and performance in every product. Menon Bearings is trusted by numerous clients for its superior engineering and customer-centric approach, making it a key player in the bearing industry.

  • Established leader in bearing manufacturing
  • Serves multiple industries including automotive and aerospace
  • Focus on innovation and quality assurance
  • Strong domestic and international presence
  • Trusted by a wide range of clients
  • Commitment to customer satisfaction and performance

Investment Thesis

Menon Bearings Ltd presents a compelling investment opportunity due to its robust promoter credibility, significant growth potential in digital services, and attractive valuation compared to industry peers. The company's strategic focus on innovation positions it well for future expansion.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expansion into digital services offers a substantial growth runway.
  • Valuation metrics indicate Menon Bearings is undervalued compared to competitors.
  • Commitment to quality and innovation drives market competitiveness.
  • Positive industry outlook supports long-term investment potential.

Opportunity vs Risk

Opportunities
  • Growing demand for automotive components
  • Expansion into new markets
  • Strong R&D capabilities
  • Partnerships with major manufacturers
Risks ⚠️
  • Volatility in raw material prices
  • Dependence on automotive sector
  • Regulatory changes impact operations
  • Intense competition in the industry

Peer Perspective

Menon Bearings Ltd trades at a discount to peers like SKF India and Timken India, reflecting concerns over margin stability. A consistent improvement in operational efficiency could trigger a rerating in the stock.

Future Outlook

Menon Bearings Ltd is well-positioned for growth, driven by increasing demand in key sectors. However, successful execution and stringent cost control will be essential to fully capitalize on these opportunities.

AI FAQs for Retail Users

  • Q: What does Menon Bearings Ltd do?
    A: Menon Bearings Ltd manufactures and sells various types of bearings for different industries.
  • Q: Is Menon Bearings Ltd a profitable company?
    A: The company's profitability can vary; check recent financial reports for the latest information.
  • Q: What factors affect Menon Bearings Ltd's stock price?
    A: Stock price can be influenced by market conditions, company performance, and industry trends.
  • Q: How can I invest in Menon Bearings Ltd?
    A: You can invest through a registered stockbroker or an online trading platform.
  • Q: What is the dividend policy of Menon Bearings Ltd?
    A: The company may declare dividends based on its earnings and board decisions; check announcements for updates.
📊 Stock Investment Checklist (100 Points)
Menon Bearings Ltd • Updated: 2025-09-17 03:37:26
  • 8
    Business
    High
    The bearings industry is essential for various sectors, indicating a stable demand.
  • 10
    Growth
    High
    Revenue growth has been consistent, but profit margins are under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 9
    Valuation
    High
    P/E and P/B ratios are slightly above industry average, indicating potential overvaluation.
  • 7
    Balance
    High
    Moderate debt levels, but liquidity ratios are satisfactory.
  • 6
    Governance
    Good
    Promoter holding is good, but some pledging raises concerns.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks are significant.
  • 1
    Technicals
    Low
    Market sentiment is weak with low liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
Menon Bearings Ltd shows potential in a stable industry, but faces challenges in profitability and market sentiment.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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