⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
MSUMI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | MSUMI | Market Cap | 25,698 Cr. | Current Price | 38.8 ₹ | High / Low | 53.6 ₹ |
| Stock P/E | 41.3 | Book Value | 2.78 ₹ | Dividend Yield | 1.46 % | ROCE | 42.5 % |
| ROE | 35.9 % | Face Value | 1.00 ₹ | DMA 50 | 42.8 ₹ | DMA 200 | 43.5 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | 0.58 % | PAT Qtr | 149 Cr. | PAT Prev Qtr | 165 Cr. |
| RSI | 29.9 | MACD | -1.29 | Volume | 1,14,42,159 | Avg Vol 1Wk | 90,21,779 |
| Low price | 31.3 ₹ | High price | 53.6 ₹ | PEG Ratio | 4.19 | Debt to equity | 0.14 |
| 52w Index | 33.7 % | Qtr Profit Var | 6.76 % | EPS | 0.94 ₹ | Industry PE | 25.0 |
📊 Financials
- Revenue & Profitability: PAT fell from ₹165 Cr. to ₹149 Cr., showing short-term weakness. EPS at ₹0.94 remains modest.
- Margins & Returns: Strong ROCE (42.5%) and ROE (35.9%) highlight excellent efficiency.
- Debt: Debt-to-equity ratio of 0.14 indicates a very healthy balance sheet.
- Cash Flow: Stable due to low leverage and consistent profitability.
💹 Valuation
- P/E Ratio: 41.3 vs Industry PE of 25.0 → Overvalued compared to peers.
- P/B Ratio: ~14 (Price ₹38.8 / Book Value ₹2.78) → Expensive on book value basis.
- PEG Ratio: 4.19 → Growth does not justify valuation.
- Intrinsic Value: Current price trades above fair value estimates.
🏢 Business Model & Competitive Advantage
- Operates in auto components manufacturing with strong OEM relationships.
- Competitive advantage lies in scale, efficiency, and established industry presence.
- Dividend yield of 1.46% provides modest shareholder returns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹31–34 range (close to 52W low and RSI oversold at 29.9).
- Long-Term Holding: Suitable for accumulation at lower valuations. Current levels are expensive, so staggered buying is recommended.
✅ Positive
- High ROCE and ROE indicate strong efficiency.
- Low debt ensures financial safety.
- Dividend yield supports investor confidence.
⚠️ Limitation
- Valuation multiples (P/E, P/B, PEG) are significantly higher than industry averages.
- Quarterly profit decline signals near-term weakness.
📉 Company Negative News
- Recent quarterly PAT dropped by ~10% compared to previous quarter.
- FII holdings reduced (-0.13%), showing cautious foreign sentiment.
📈 Company Positive News
- DII holdings increased (+0.58%), reflecting domestic institutional confidence.
- Strong long-term return metrics despite short-term profit dip.
🏭 Industry
- Auto components sector is cyclical, tied to automobile demand and global supply chains.
- Industry PE at 25.0 suggests peers are trading at more reasonable valuations.
🔎 Conclusion
- MSUMI is fundamentally strong with excellent return ratios and low debt.
- However, valuations are stretched, making current price unattractive for fresh entry.
- Best strategy: Accumulate near ₹31–34 range for long-term holding, while avoiding aggressive buying at current levels.