BUY CALL!Chart provides the necessary details.
Great volume is backed by positive breakout
Feedback always appreciated
MENONBE trade ideas
Menon Bearings - Technical & Fundamental - Auto Ancillary ThemeMenon Bearings is engaged in the business of Bearings, Bushes and Thrust Washers, Aluminium Die Casting Components having applications in Heavy & Light commercial vehicles, Tractors, Construction equipment, Material handling, Stationery, Diesel, Gasoline and CNG engines.
Market leader in bearing industry: MBL started its operations way back in 1994 and since then it has achieved various milestones. MBL is one of the leading manufacturers of highly critical moving engine components.
International Presence: MBL exports almost 30% of its production to countries like USA, Mexico, UK, Netherlands, Austria, UAE, Africa , Japan etc.
Strong distribution network: The brand " Menon Bearings" has a strong presence in the replacement markets through its presence in 10,000 + retail outlets across India and strong network of 1000 dealers+ distributors.
Wide spread clientele base: MBL's major revenues are contributed by well known OEM's having global presence. John Deere, Tata's, Mahindras, Honeywell, Ace tractors, Cooper corp, Eicher, Maruti Suzuki, Volvo, Ashok Leyland, GM, Tata, BEML, Piaggio are few of its well known clients.
FUNDAMENTALS:
> It is a Small Cap company with a market cap of just Rs.462 Cr.
> The ROCE and ROE is at 22.4% and 20% respectively which is impressive. Positive.
> OPM is at 23% as per Mar 21 Balance Sheet and last 5 year average is aprx 25% which means it’s a super profitable company.
> Price to Book Value is 2.4 which means the company have overall stable fundamentals.
> Stock P/E is at 24.6 which makes the valuation very attractive.
> Higher than Industry Net Income : Over the last 5 years, net income has grown at a yearly rate of 4.8%, vs industry avg of -8.64%. Positive.
> Robust Topline and Bottomline , continuously increasing on QoQ basis.
> Debts: The company have Debts of Rs . 29 Cr as per Mar 21 Balance Sheet which is much below the acceptable limits as compared to Reserves.
> Reserves: It is Rs. 93 Cr as per Mar 21 Balance Sheet.
> Promoters holding is intact above 71% since last 7 years, like they trust their own business and staying invested.
> FIIs are showing good interest in the company and they are increasing their stake on YoY basis.
TECHNICALS:
> The stock has taken long 3+ years to make a wonderful rounding bottom pattern after taking support at Rs.27 levels. It has given breakout recently with huge volume.
> On the chart stock is continuously in UPTREND since March 2020 Covid fall.
> Increasing Long Volume towers as indicated by blue arrows at the bottom indicates that lot of accumulation is going on in the stock continuously. Compare the recent volume with the volume when the stock was falling. Stock is picking up momentum.
> Trading above 100 and 200 DMAs this talks about the strength in the bull run of this stock.
Now if we look at the market from broader perspective, Automobile industry is in good momentum specially all small and midcap Auto Ancillary business. The company have massive client base in India as well as overseas.
Fresh Buy - AT CMP i.e. Rs.82
Old Buy – Hold
Target – Hold for at least 125 (+52%).
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Happy Investing!
ShareMktSchool
5 Yr Resistance BO MENONBE [Auto Sector]⚙️📌 Levels are mentioned on chart for ❝Swing trading❞.
The stock has shown good volumes along with the 5 yr Resistance BO .
📌 Net profit of Menon Bearings rose 95.45% to Rs 6.45 crore in the quarter ended March 2021 as against Rs 3.30 crore during the previous quarter ended March 2020. Sales rose 53.53% to Rs 46.52 crore in the quarter ended March 2021 as against Rs 30.30 crore during the previous quarter ended March 2020.
For the full year,net profit rose 30.56% to Rs 18.80 crore in the year ended March 2021 as against Rs 14.40 crore during the previous year ended March 2020. Sales rose 8.66% to Rs 147.87 crore in the year ended March 2021 as against Rs 136.09 crore during the previous year ended March 2020.
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Head & Shoulder in the making !!Buying volume seems to be pushing the stock higher. There is a lot of noise in the chart.
Can be bought above 67 for a target of 74/84.
Note: Educational purpose
Menon Bearing Cup and handle pattern target 68Menon Bearings in the Cup & Handle pattern. Probable target 68.2, i;e the depth of the cup from the current value. Target of 30%. Book half amount @20%. For educational purpose only.
Seems break out with decent volume - effect of good Q2 results ?Very interesting company , play on higher tractors demand & turnaround in HCV decent Q2 results
& it seems to have come out of long downtrend
Disclaimer - Its not a recommendation to BUY but idea worth tracking
Forming falling wedge pattern in weekly chart, with high volumeForming falling wedge pattern in weekly chart, with high volume
Menon Bearings "Wood cutting saw" For Educational purpose
Buy for Target
135
145
155
SL below 115 CBSL
#MENONBEH> 102.20 and C>98.1 needed by Friday 22/12/2017
With strength
CCI(D/W/M)>100
Volume Support
TGC active
Menon BearingsThe stock has broken out of a pattern 1 year in the making, good times seem evident for the stock.
Long Menon NSE:MENONBE is ready to breakout, Be ready to take position in that with the target of 95-100. Risky traders can initiate their position before breakout having positive view near to 75.
