⚠ 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: 3.9
| Stock Code | MSUMI | Market Cap | 28,123 Cr. | Current Price | 42.3 ₹ | High / Low | 53.6 ₹ |
| Stock P/E | 45.2 | Book Value | 2.78 ₹ | Dividend Yield | 1.34 % | ROCE | 42.5 % |
| ROE | 35.9 % | Face Value | 1.00 ₹ | DMA 50 | 45.7 ₹ | DMA 200 | 44.0 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | 0.58 % | PAT Qtr | 149 Cr. | PAT Prev Qtr | 165 Cr. |
| RSI | 38.0 | MACD | -1.26 | Volume | 23,12,471 | Avg Vol 1Wk | 66,75,758 |
| Low price | 30.7 ₹ | High price | 53.6 ₹ | PEG Ratio | 4.58 | Debt to equity | 0.14 |
| 52w Index | 50.6 % | Qtr Profit Var | 6.76 % | EPS | 0.94 ₹ | Industry PE | 28.0 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 165 Cr. to 149 Cr., showing short-term pressure. However, ROCE (42.5%) and ROE (35.9%) remain strong, reflecting efficient capital usage.
- Margins: High return metrics indicate healthy margins, though EPS at 0.94 ₹ is modest relative to valuation.
- Debt: Debt-to-equity ratio of 0.14 suggests a very low leverage, strengthening financial stability.
- Cash Flow: Dividend yield of 1.34% indicates consistent cash generation and shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 45.2 vs Industry PE of 28.0 → Overvalued compared to peers.
- P/B Ratio: Current Price (42.3 ₹) / Book Value (2.78 ₹) ≈ 15.2 → Very high, signals premium valuation.
- PEG Ratio: 4.58 → Indicates expensive valuation relative to growth.
- Intrinsic Value: Current price exceeds fair value zone, suggesting limited upside in near term.
🏭 Business Model & Competitive Advantage
- Operates in auto components manufacturing, benefiting from OEM demand and industry growth.
- Strong ROCE and ROE highlight operational efficiency and competitive positioning.
- Low debt enhances resilience against cyclical downturns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 35 ₹ – 38 ₹, closer to RSI oversold levels and below DMA 200.
- Long-Term Holding: Suitable for patient investors given strong fundamentals, but valuation risks suggest staggered buying.
✅ Positive
- High ROCE and ROE indicating strong efficiency.
- Low debt-to-equity ratio ensures financial stability.
- Consistent dividend yield supports shareholder value.
⚠️ Limitation
- High P/E and P/B ratios make the stock expensive.
- Quarterly profit decline shows near-term weakness.
- PEG ratio signals overvaluation relative to growth.
📉 Company Negative News
- Recent quarterly PAT dropped from 165 Cr. to 149 Cr.
- FII holding decreased by 0.13%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased by 0.58%, reflecting domestic institutional support.
- Strong long-term return metrics despite short-term profit dip.
🌐 Industry
- Auto component sector is cyclical but benefits from rising automobile demand.
- Industry PE at 28.0 indicates peers trade at lower valuations, highlighting premium pricing for MSUMI.
🔎 Conclusion
MSUMI demonstrates strong fundamentals with excellent return ratios and low debt, but current valuations are stretched. Investors may consider entering around 35–38 ₹ for long-term holding, while avoiding aggressive buying at current levels. The company remains fundamentally healthy, but patience is key for value-conscious investors.
Would you like me to also prepare a technical analysis chart zone (support/resistance levels with DMA and RSI) to complement this fundamental view?