Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

Munjal Auto Industries Limited

(NSE:MUNJALAU)

Select Model

Rating:51Neutral

Price Target:INR 95.00▼(-2.26% Downside)

Action:reiterated

Date:10/07/26

The score is primarily held back by weakened cash generation (negative free cash flow and weak cash conversion) alongside rising leverage and thin margins. Technical signals also point to near-term softness (negative MACD, RSI below 50, and price below short-term averages). Valuation is not especially cheap and the dividend yield is modest, providing only limited offset.

Positive Factors

Revenue and earnings growthPositive revenue and earnings growth indicate that the company is currently expanding its business and improving profit output. If this momentum persists, it can support stronger internal funding, greater operating scale, and better capacity to absorb industry fluctuations over the next several quarters.

Negative Factors

Negative free cash flowSustained negative free cash flow reduces the company’s ability to fund capital needs, repay obligations, or reinvest without external financing. This is a durable financial constraint because weak cash generation can persist even when reported revenue and earnings are improving.

Munjal Auto Industries Limited (MUNJALAU) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 9.74B
Dividend Yield: 1.03%
Average Volume (3M): 81.91K
Price to Earnings (P/E): 19.4
Beta (1Y): 1.29
Revenue Growth: 22.26%
EPS Growth: 23.98%
Country: India
Employees: 861
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Munjal Auto Industries Limited Business Overview & Revenue Model

Company Description

Founded in 1985 and headquartered in Gurugram, India, Munjal Auto Industries Limited specializes in the production and distribution of a wide array of motor vehicle components and accessories throughout India. The company operates primarily through t...

Munjal Auto Industries Limited Financial Statement Overview

Summary

Revenue improved in FY2026 and gross margin rebounded from the FY2024 trough, but profitability remains thin (low operating and net margins). Leverage has risen materially (debt-to-equity nearing ~1x) and returns have softened. The biggest drag is cash flow: free cash flow turned negative in FY2025–FY2026 with weak cash conversion, reducing financial flexibility.

Income Statement

62Positive

Balance Sheet

58Neutral

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.03B	22.95B	20.66B	18.82B	19.84B	19.16B
Gross Profit	3.83B	3.56B	3.43B	1.62B	4.78B	2.66B
EBITDA	1.54B	1.67B	1.36B	1.40B	1.45B	879.22M
Net Income	502.11M	402.01M	363.91M	384.90M	561.35M	267.94M
Balance Sheet
Total Assets	0	14.55B	12.37B	12.18B	12.76B	9.61B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.39B	1.42B	1.76B	1.13B	1.20B
Total Debt	0	4.23B	3.50B	2.76B	2.82B	1.16B
Total Liabilities	-4.67B	9.89B	8.09B	8.07B	8.81B	6.09B
Stockholders Equity	4.67B	4.48B	4.16B	4.01B	3.84B	3.37B
Cash Flow
Free Cash Flow	-564.81M	-396.20M	-542.34M	861.40M	51.97M	1.20B
Operating Cash Flow	-179.57M	337.10M	118.49M	1.27B	345.81M	1.37B
Investing Cash Flow	-78.58M	-674.24M	-116.33M	-772.52M	371.31M	-992.65M
Financing Cash Flow	199.25M	390.14M	6.97M	-525.50M	-648.93M	-503.47M

Munjal Auto Industries Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price97.20

Price Trends

50DMA106.28Negative

100DMA103.85Negative

200DMA91.56Positive

Market Momentum

MACD-2.86Positive

RSI42.87Neutral

STOCH54.70Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUNJALAU, the sentiment is Neutral. The current price of 97.20 is below the 20-day moving average (MA) of 100.43, below the 50-day MA of 106.28, and above the 200-day MA of 91.56, indicating a neutral trend. The MACD of -2.86 indicates Positive momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 54.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MUNJALAU.

Munjal Auto Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MUNJALAU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:JAMNAAUTO	76Outperform	INR 48.44B	20.62	―	1.24%	15.89%	29.90%
IN:BHARATSE	56Neutral	INR 12.32B	23.83	―	0.76%	48.41%	35.50%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RICOAUTO	53Neutral	INR 13.42B	43.84	―	0.56%	21.35%	-4.52%
IN:MUNJALAU	51Neutral	INR 9.72B	19.40	―	1.03%	22.26%	23.98%
IN:MUNJALSHOW	48Neutral	INR 4.87B	19.54	―	3.69%	12.33%	-1.65%
IN:SETCO	42Neutral	INR 2.07B	0.84	―	83.87%	-6.53%	―

* General Sector Average

Performance Comparison

IN:MUNJALAU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MUNJALAU	Munjal Auto Industries Limited	97.20	6.73	7.43%
IN:JAMNAAUTO	Jamna Auto Industries Limited	121.10	29.05	31.56%
IN:MUNJALSHOW	Munjal Showa Limited	121.80	-4.14	-3.29%
IN:RICOAUTO	Rico Auto Industries Limited	99.20	15.25	18.16%
IN:SETCO	Setco Automotive Limited	15.50	5.73	58.68%
IN:BHARATSE	Bharat Seats Limited	196.10	-11.51	-5.55%

Munjal Auto Industries Limited Corporate Events

Munjal Auto Holds 41st AGM, Confirms Clean Audit and E-Voting Disclosure Plan

Aug 31, 2026

Munjal Auto Industries Limited held its 41st Annual General Meeting on August 31, 2026, via video conferencing and other audio-visual means, in line with circulars from the Ministry of Corporate Affairs and SEBI. The meeting was chaired by Chairman a...

Munjal Auto Sets August 31 Virtual AGM, Circulates FY26 Annual Report

Aug 7, 2026

Munjal Auto Industries Limited has released its Annual Report for the financial year 2025-26, including the notice convening its 41st Annual General Meeting scheduled for August 31, 2026, at 3:00 P.M. The AGM will be conducted via video conferencing...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 07, 2026

Munjal Auto Industries Limited AI Stock Analysis