Munjal Showa Limited (MUNJALSHOW) AI Stock Analysis

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Munjal Showa Limited

(NSE:MUNJALSHOW)

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Rating:50Neutral

Price Target:INR 117.00▼(-12.75% Downside)

Action:reiterated

Date:09/06/26

The overall score is constrained by weak operational momentum. The company's primary strength is its rock-solid, debt-free balance sheet, which provides significant downside protection. However, this is overshadowed by deteriorating profitability, negative cash flows, and bearish technicals, which signal ongoing operational and market challenges. The attractive dividend yield is a minor positive but is at risk if cash flows do not recover.

Positive Factors

Debt-free balance sheetThe absence of reported debt keeps financial risk low and preserves flexibility for working capital, investment, and shareholder returns. Stable-to-growing equity provides a durable capital base, helping the company withstand operating volatility without relying heavily on refinancing.

Negative Factors

Volatile cash generationNegative operating and free cash flow in FY2026 shows that reported earnings are not converting reliably into cash. Repeated swings between positive and negative free cash flow can constrain self-funded investment, weaken capital allocation flexibility, and increase dependence on balance-sheet resources.

Munjal Showa Limited (MUNJALSHOW) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 5.12B
Dividend Yield: 3.49%
Average Volume (3M): 1,572
Price to Earnings (P/E): 20.9
Beta (1Y): 0.81
Revenue Growth: 12.33%
EPS Growth: -1.65%
Country: India
Employees: 2,299
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Munjal Showa Limited Business Overview & Revenue Model

Company Description

Munjal Showa Limited manufactures and sells auto components for the two-wheeler and four-wheeler industry primarily in India and internationally. Its products include front forks, shock absorbers, struts, gas springs, and window balancers, as well as...

Munjal Showa Limited Financial Statement Overview

Summary

Financial performance is mixed. A pristine, debt-free balance sheet (Score: 80) provides a strong foundation, but this is offset by weak profitability with declining margins (Income Score: 45) and inconsistent, recently negative cash flows (Cash Flow Score: 35). The overall financial health is stable but operational efficiency is a concern.

Income Statement

45Neutral

Balance Sheet

80Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	13.77B	13.15B	12.50B	11.73B	12.41B	10.60B
Gross Profit	2.02B	1.60B	1.48B	2.56B	2.19B	439.55M
EBITDA	301.66M	403.03M	471.72M	487.95M	541.50M	265.46M
Net Income	248.16M	218.72M	288.70M	307.66M	319.03M	121.50M
Balance Sheet
Total Assets	0	8.65B	8.28B	8.11B	8.11B	7.86B
Cash, Cash Equivalents and Short-Term Investments	3.19B	3.20B	3.47B	2.82B	2.66B	2.60B
Total Debt	0	0	0	0	0	0
Total Liabilities	-6.78B	1.87B	1.54B	1.46B	1.59B	1.48B
Stockholders Equity	6.78B	6.78B	6.74B	6.64B	6.51B	6.37B
Cash Flow
Free Cash Flow	-418.60M	-193.99M	351.79M	71.87M	-58.35M	224.25M
Operating Cash Flow	-393.93M	-128.34M	419.84M	114.19M	64.38M	299.40M
Investing Cash Flow	355.94M	58.21M	-153.68M	186.78M	1.59M	-52.61M
Financing Cash Flow	-179.16M	-180.18M	-179.86M	-180.35M	-180.77M	-180.64M

Munjal Showa Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price134.10

Price Trends

50DMA125.05Positive

100DMA128.16Positive

200DMA125.72Positive

Market Momentum

MACD0.42Negative

RSI61.08Neutral

STOCH82.11Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUNJALSHOW, the sentiment is Positive. The current price of 134.10 is above the 20-day moving average (MA) of 122.34, above the 50-day MA of 125.05, and above the 200-day MA of 125.72, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MUNJALSHOW.

Munjal Showa Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MUNJALSHOW against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ENDURANCE	75Outperform	INR 355.50B	34.86	―	0.46%	31.99%	15.15%
IN:LGBBROSLTD	75Outperform	INR 54.17B	16.89	―	1.30%	21.09%	-1.11%
IN:GABRIEL	74Outperform	INR 269.93B	77.05	―	0.32%	24.12%	19.76%
IN:JAMNAAUTO	72Outperform	INR 55.00B	25.10	―	1.02%	15.89%	29.90%
IN:RML	66Neutral	INR 34.17B	29.29	―	1.27%	34.72%	736.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:MUNJALSHOW	50Neutral	INR 5.01B	20.89	―	3.49%	12.33%	-1.65%

* General Sector Average

Performance Comparison

IN:MUNJALSHOW and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MUNJALSHOW	Munjal Showa Limited	134.10	7.96	6.31%
IN:ENDURANCE	Endurance Technologies Ltd.	2539.20	-132.35	-4.95%
IN:GABRIEL	Gabriel India Limited	1553.10	536.25	52.74%
IN:JAMNAAUTO	Jamna Auto Industries Limited	148.85	40.87	37.85%
IN:LGBBROSLTD	L.G. Balakrishnan & Bros Ltd.	1692.25	-111.35	-6.17%
IN:RML	Rane (Madras) Limited	1246.00	445.42	55.64%

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: Sep 06, 2026

Munjal Showa Limited AI Stock Analysis