Menon Pistons (531727)

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me begin with two questions: is this a good business, and is it being bought at a sensible price? I cannot see the pistons factory from these numbers, but the figures can tell me about capital efficiency. Menon Pistons is in auto components, a sector I know to be cyclical and competitive. Sales growth is 20.58%, which looks healthy, yet profit growth trails at 13.92%. That gap is a yellow flag. Latest quarter sales are ₹76 crore and net profit ₹6 crore, so the margin is modest. ROCE of 21.58% is respectable, but ROE of 11.71% is moderate; paying 3.05 times book value for an 11.71% ROE is not attractive on its own. At ₹87.32, market cap is ₹451 crore, at the top of the 52-week range. The P/E is 11.76, and PEG of 0.68 would be cheap if the profit growth is durable. However, valuation means little in a cyclical upturn if the multiple is applied to peak earnings. The Piotroski score of 7/9 and dividend yield of 1.69% give some support. Yet debt-to-equity and promoter holding are not disclosed, and I prefer knowing who owns the company and how much debt is on its books. This is a decent small-cap, but I don't see a wide moat from the data given. I would wait, let the next few quarters prove that profit growth can match sales growth, and then look for a margin of safety. In investing, you wait for a fat pitch; this one does not feel fat enough.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer