Market Share Gains
Expected: OngoingHIGH confidence
What: Hero MotoCorp Wallet Share: 75%
Impact: High
Munjal Showa Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +14.1%Average4w Streak
In , Munjal Showa Ltd (Auto - 2 & 3 Wheelers) is outperforming Nifty 500 with +14.1% relative strength. Fundamentals: Average. On a 4-week streak.
Munjal Showa Ltd Key Facts
- PE Ratio
- 17.2x
- Market Cap
- ₹559 Cr
- PAT Growth YoY
- +83%
- Revenue Growth YoY
- +10%
- OPM
- 4.0%
- RS vs Nifty 500
- +14.1%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💰Trading 47% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Market Share Gains
OngoingHIGH
2. New Product Or Brand Launch
Q1 FY26MEDIUM
Key Risks
1. Fluctuations in steel and aluminum prices impact gross margins
MEDIUM2. Supply chain disruptions for specialized components sourced from Showa Corporati
LOWSector-Specific Signals
Customer Concentration (Hero MotoCorp)78%0%
Capacity Utilisation65%-2%
Raw Material Cost to Sales74.2%-0.8%
Key Numbers
PAT Growth YoY
+83%
Stable
Revenue YoY
+10%
Stable
Operating Margin
4.0%
+200 bps YoY
PE Ratio
17.2
Current Price
₹140
Dividend Yield
3.22%
Fundamental Score
49/100
Average
3Y PAT CAGR
+34%
Market Cap
559 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Munjal Showa Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
New Product Or Brand Launch
Expected: Q1 FY26MEDIUM confidence
What: R&D Spend: INR 8.2 Cr
Impact: Medium
What Are the Key Risks for Munjal Showa Ltd?
Earnings deceleration risks from management commentary
Fluctuations in steel and aluminum prices impact gross margins
MEDIUMTrigger: Fluctuations in steel and aluminum prices impact gross margins.
Impact: PAT impact: 5-7%
Management view: Quarterly price pass-through agreements with OEMs.
Monitor: commodity
Supply chain disruptions for specialized components sourced from Showa Corporati
LOWTrigger: Supply chain disruptions for specialized components sourced from Showa Corporation, Japan.
Impact: PAT impact: null
Management view: Increasing localization of sub-components.
Monitor: geopolitical
What Did Munjal Showa Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 430.82 Cr
YoY +10.4%QoQ -4.2%
Growth was driven by steady demand from the primary OEM customer, Hero MotoCorp, despite a slight sequential dip.
EBITDA
INR 28.43 Cr
YoY +15.2%Margin 6.6%
Margin expansion was supported by better absorption of fixed costs and stable raw material prices.
PAT
INR 18.15 Cr
YoY +22.1%QoQ -8.5%
Profit growth outpaced revenue due to higher other income and controlled interest expenses.
Other Highlights
• Other income increased to INR 6.42 Cr from INR 4.12 Cr YoY.
• Total expenses for the quarter stood at INR 410.25 Cr.
• Raw material costs as a percentage of sales remained stable at 74.2%.
What Sector Metrics Matter for Munjal Showa Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Customer Concentration (Hero MotoCorp)
78%
YoY 0%QoQ null
Why: Persistent reliance on the promoter-group entity for the majority of sales.
Capacity Utilisation
65%
YoY -2%QoQ null
Why: Lower than optimal utilization due to sluggish entry-level motorcycle demand.
Raw Material Cost to Sales
74.2%
YoY -0.8%QoQ +1.1%
Why: Softening of global steel prices compared to the previous year.
What Is Munjal Showa Ltd's Management Guidance?
Forward-looking targets from management
Capex Plan
₹45 Cr
Capex Plan
INR 45 Cr
Capacity expansion for new shock absorber lines
Management Tone: CAUTIOUS
How Fast Is Munjal Showa Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +10% | +6% | Stable |
| PAT (Net Profit) | +83% | +34% | Stable |
| OPM | 4.0% | +200 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Auto - 2 & 3 Wheelers Stocks Beating Nifty 500
Frequently Asked Questions: Munjal Showa Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Munjal Showa Ltd's latest quarterly results?
Munjal Showa Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +83.3% (stable)
- Revenue Growth YoY: +9.7%
- Operating Margin: 4.0% (stable)
Is Munjal Showa Ltd's profit growing or declining?
Munjal Showa Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +83.3% (latest quarter)
- PAT Growth QoQ: +266.7% (sequential)
- 3-Year PAT CAGR: +34.2%
- Trend: Stable — consistent growth pattern
What is Munjal Showa Ltd's revenue growth trend?
Munjal Showa Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +9.7%
- Revenue Growth QoQ: +5.1% (sequential)
- 3-Year Revenue CAGR: +5.7%
How is Munjal Showa Ltd's operating margin trending?
Munjal Showa Ltd's operating margin is stable.
- Current OPM: 4.0%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: +3.0% basis points
What is Munjal Showa Ltd's 3-year profit and revenue CAGR?
Munjal Showa Ltd's long-term compounding rates
- 3-Year Profit CAGR: +34.2%
- 3-Year Revenue CAGR: +5.7%
Is Munjal Showa Ltd's growth accelerating or decelerating?
Munjal Showa Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +33.3% bps
- Sequential Acceleration: +100.0% bps
What is Munjal Showa Ltd's trailing twelve month (TTM) performance?
Munjal Showa Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹31 Cr
- TTM PAT Growth: +10.7% YoY
- TTM Revenue: ₹1,000 Cr
- TTM Revenue Growth: +2.4% YoY
- TTM Operating Margin: 2.1%
Is Munjal Showa Ltd overvalued or undervalued?
Munjal Showa Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 17.2x
- Price-to-Book: 0.8x
What is Munjal Showa Ltd's current PE ratio?
Munjal Showa Ltd's current PE ratio is 17.2x.
- Current PE: 17.2x
- Market Cap: 559 Cr
- Dividend Yield: 3.22%
How does Munjal Showa Ltd's valuation compare to its history?
Munjal Showa Ltd's current PE is 17.2x.
- Current PE: 17.2x
- Valuation Assessment: Significantly Overvalued
What is Munjal Showa Ltd's price-to-book ratio?
Munjal Showa Ltd's price-to-book ratio is 0.8x.
- Price-to-Book (P/B): 0.8x
- Book Value per Share: ₹167
- Current Price: ₹140
Is Munjal Showa Ltd a fundamentally strong company?
Munjal Showa Ltd is rated Average with a fundamental score of 48.84/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +9.7% (10% weight)
- PAT Growth YoY: +83.3% (10% weight)
- PAT Growth QoQ: +266.7% (10% weight)
- Margins stable (10% weight)
Is Munjal Showa Ltd debt free?
Munjal Showa Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹0 Cr
What is Munjal Showa Ltd's return on equity (ROE) and ROCE?
Munjal Showa Ltd's return ratios over recent years
- FY2023: ROCE 5.0%
- FY2024: ROCE 5.0%
- FY2025: ROCE 0.0%
Is Munjal Showa Ltd's cash flow positive?
Munjal Showa Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹37 Cr
- Free Cash Flow (FCF): ₹27 Cr
- CFO/PAT Ratio: 128% (strong cash conversion)
What is Munjal Showa Ltd's dividend yield?
Munjal Showa Ltd's current dividend yield is 3.22%.
- Dividend Yield: 3.22%
- Current Price: ₹140
Who holds Munjal Showa Ltd shares — promoters, FII, DII?
Munjal Showa Ltd's shareholding pattern (Mar 2026)
- Promoters: 65.0%
- FII (Foreign): 0.1%
- DII (Domestic): 0.0%
- Public: 34.9%
Is promoter holding increasing or decreasing in Munjal Showa Ltd?
Munjal Showa Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 65.0% (Mar 2026)
- Previous Quarter: 65.0% (Dec 2025)
- Change: 0.00% (stable)
How long has Munjal Showa Ltd been outperforming Nifty 500?
Munjal Showa Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Munjal Showa Ltd a new momentum entry or an established outperformer?
Munjal Showa Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Munjal Showa Ltd?
Munjal Showa Ltd has 2 key growth catalysts identified from recent earnings analysis
- Market Share Gains — High dependency on the market leader in 2W ensures volume stability.
- New Product Or Brand Launch — Premiumization of the product mix improves realizations.
What are the key risks in Munjal Showa Ltd?
Munjal Showa Ltd has 2 key risks worth monitoring
- [MEDIUM] Fluctuations in steel and aluminum prices impact gross margins — Fluctuations in steel and aluminum prices impact gross margins.
- [LOW] Supply chain disruptions for specialized components sourced from Showa Corporati — Supply chain disruptions for specialized components sourced from Showa Corporation, Japan.
What is Munjal Showa Ltd's management guidance for growth?
Munjal Showa Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: ₹45 Cr for Capacity expansion for new shock absorber lines
- Management tone: cautious
What sector-specific metrics matter most for Munjal Showa Ltd?
Munjal Showa Ltd's most important sub-sector-specific KPIs from the latest concall
- Customer Concentration (Hero MotoCorp): 78% (YoY 0%) (QoQ null) — Persistent reliance on the promoter-group entity for the majority of sales.
- Capacity Utilisation: 65% (YoY -2%) (QoQ null) — Lower than optimal utilization due to sluggish entry-level motorcycle demand.
- Raw Material Cost to Sales: 74.2% (YoY -0.8%) (QoQ +1.1%) — Softening of global steel prices compared to the previous year.
Is Munjal Showa Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Munjal Showa Ltd may be worth studying
- Earnings growing at +83.3% YoY
- Cash flow is positive — CFO ₹37 Cr
What is the investment thesis for Munjal Showa Ltd?
Munjal Showa Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Market Share Gains
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Fluctuations in steel and aluminum prices impact gross margins
What is the future outlook for Munjal Showa Ltd?
Munjal Showa Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Market Share Gains
- Key Risk: Fluctuations in steel and aluminum prices impact gross margins
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.