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Munjal Auto Industries Limited (IN:MUNJALAU)
:MUNJALAU
India Market
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Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

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IN:MUNJALAU

Munjal Auto Industries Limited

(MUNJALAU)

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Neutral 58 (OpenAI - Gpt-5.6Sol)
Rating:58Neutral
Price Target:
₹120.00
▲(17.02% Upside)
Action:Reiterated
Date:07/07/26
The score is held back primarily by weakening cash generation (negative free cash flow in FY2025–FY2026 and weak cash conversion) alongside higher leverage and thin margins. Offsetting this, technicals are constructive with the price trading above key moving averages and neutral-to-positive momentum indicators. Valuation is a secondary constraint due to a higher P/E and modest dividend yield.
Positive Factors
Revenue Recovery
The FY2026 revenue recovery indicates improving demand for the company’s automotive components. If sustained across two-wheeler and commercial-vehicle customers, it can support better capacity utilization and provide a foundation for renewed earnings growth.
Negative Factors
Weak Cash Conversion
Persistent negative free cash flow and very weak conversion of earnings into operating cash indicate working-capital or reinvestment pressure. This can limit internally funded growth, increase reliance on borrowing, and reduce flexibility during weaker demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The FY2026 revenue recovery indicates improving demand for the company’s automotive components. If sustained across two-wheeler and commercial-vehicle customers, it can support better capacity utilization and provide a foundation for renewed earnings growth.
Read all positive factors

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

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 throug...
How the Company Makes Money
Munjal Auto Industries makes money mainly by manufacturing and selling automotive components to vehicle manufacturers (OEMs) and, to a lesser extent, through replacement/aftermarket sales. Its core revenue stream is the sale of made-to-spec parts ...

Munjal Auto Industries Limited Financial Statement Overview

Summary
Mixed fundamentals: revenue rebounded in FY2026 (~+8.8%) and gross margin improved versus FY2024, but profitability remains thin (FY2026 net margin ~1.8%, operating margin ~2.7%). Leverage has risen materially (debt-to-equity ~0.95 in FY2026 vs ~0.34 in FY2022) while ROE has softened (~9% in FY2025–FY2026). The largest drag is cash flow quality: free cash flow turned negative in FY2025 and FY2026 with very weak cash conversion (operating cash flow to net income ~0.02–0.05).
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
36
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue25.03B22.95B20.66B18.82B19.84B19.16B
Gross Profit3.83B3.56B3.43B1.62B4.78B2.66B
EBITDA1.54B1.67B1.36B1.40B1.45B879.22M
Net Income502.11M402.01M363.91M384.90M561.35M267.94M
Balance Sheet
Total Assets0.0014.55B12.37B12.18B12.76B9.61B
Cash, Cash Equivalents and Short-Term Investments1.29B1.39B1.42B1.76B1.13B1.20B
Total Debt0.004.23B3.50B2.76B2.82B1.16B
Total Liabilities-4.67B9.89B8.09B8.07B8.81B6.09B
Stockholders Equity4.67B4.48B4.16B4.01B3.84B3.37B
Cash Flow
Free Cash Flow-564.81M-396.20M-542.34M861.40M51.97M1.20B
Operating Cash Flow-179.57M337.10M118.49M1.27B345.81M1.37B
Investing Cash Flow-78.58M-674.24M-116.33M-772.52M371.31M-992.65M
Financing Cash Flow199.25M390.14M6.97M-525.50M-648.93M-503.47M

Munjal Auto Industries Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price102.55
Price Trends
50DMA
107.44
Negative
100DMA
98.73
Positive
200DMA
87.89
Positive
Market Momentum
MACD
0.78
Positive
RSI
42.97
Neutral
STOCH
7.11
Positive
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 102.55 is below the 20-day moving average (MA) of 113.43, below the 50-day MA of 107.44, and above the 200-day MA of 87.89, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 7.11 is Positive, 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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
₹54.12B23.121.55%15.89%29.90%
64
Neutral
₹13.63B29.510.69%48.32%31.21%
60
Neutral
₹18.13B58.850.41%21.35%-4.52%
58
Neutral
₹10.67B21.240.93%22.26%23.98%
57
Neutral
₹5.11B20.563.52%12.33%-1.65%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
46
Neutral
₹2.28B31.0076.29%13.31%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:MUNJALAU
Munjal Auto Industries Limited
106.70
16.59
18.41%
IN:JAMNAAUTO
Jamna Auto Industries Limited
135.30
28.68
26.90%
IN:MUNJALSHOW
Munjal Showa Limited
127.80
-8.41
-6.18%
IN:RICOAUTO
Rico Auto Industries Limited
134.00
28.24
26.70%
IN:SETCO
Setco Automotive Limited
17.04
8.53
100.33%
IN:BHARATSE
Bharat Seats Limited
217.10
51.32
30.95%

Munjal Auto Industries Limited Corporate Events

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 conferenci...
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: Jul 07, 2026