Mohindra Fasteners Unlisted Shares
Buy - ₹280.00
Sell - ₹325.00
About Mohindra Fasteners Unlisted Shares
1. About the Company
Mohindra Fasteners Limited (MFL) is a prominent manufacturer of high tensile fasteners used primarily in the automotive and engineering sectors. Established in 1997, the company specializes in producing critical components that may not always be visible but play an essential role in holding together automotive and engineering machinery. These fasteners are integral to the manufacturing of vehicles, infrastructure, and industrial equipment. MFL operates in both domestic and international markets, with a significant portion of its sales deriving from exports.
The company is listed on the Metropolitan Stock Exchange of India (MSEI), which offers it exposure to the Indian capital market. Mohindra Fasteners’ client list includes major players like Hero MotoCorp, Maruti Suzuki, Tata Motors, and Hyundai India, underscoring its reliability and reputation in the fasteners industry.
2. Business Divisions
MFL primarily operates in the manufacturing of fasteners, but its key business divisions include:
- Automotive Fasteners: This division contributes a significant portion of the company’s revenue. MFL manufactures high-quality fasteners for the automotive sector, supplying to Tier-1 suppliers and OEMs (Original Equipment Manufacturers) like Hero MotoCorp, Maruti Suzuki, Tata Motors, and Hyundai India.
- Engineering Sector Fasteners:Â In addition to automotive, MFL also caters to the engineering sector, producing specialized fasteners that are crucial for various engineering applications.
- Exports:Â Mohindra Fasteners exports a substantial portion of its products to international markets, including North America, the UK, and Europe. The company derives around 60% of its revenue from exports, showcasing its significant global footprint.
- Steel Sourcing and Manufacturing: The company’s production heavily relies on steel, which is the primary raw material for making fasteners. As steel prices have recently declined, MFL stands to benefit from this macroeconomic factor, potentially improving profit margins.
3. Financial Highlights
Here are five key financial highlights for Mohindra Fasteners Unlisted Shares:
- Steady Revenue Growth: Mohindra Fasteners achieved a revenue of ₹177 crores in FY2024, up from ₹172 crores in FY2023. This represents a steady 3% growth in revenues, showcasing the company’s resilience despite market challenges. The growth in revenue is driven by both domestic and international sales.
- Improved Profit Margins: The company reported a gross margin of 64.97% in FY2024, which is an improvement over the previous year’s 59.88%. This increase in margins is reflective of better cost management, efficient operations, and favorable steel prices. Additionally, EBITDA increased to ₹27 crores in FY2024, further demonstrating improved operational efficiency.
- Earnings Per Share (EPS) Growth: The EPS for FY2024 was ₹27.16, marking a significant increase from ₹25.47 in FY2023. This upward trend in earnings indicates Mohindra Fasteners’ ability to generate higher returns for its shareholders.
- Healthy Profitability: In FY2024, the company achieved a profit after tax (PAT) of ₹16 crores, which is a marginal increase from ₹15 crores in FY2023. With a net profit margin (NPM) of 9.04%, MFL continues to show strong profitability in the competitive fasteners market.
- Debt Management and ROE:Â Mohindra Fasteners maintains a manageable debt-to-equity ratio of 0.34, which indicates low financial leverage and prudent debt management. Additionally, the company posted a return on equity (ROE) of 14.83% in FY2024, reflecting effective utilization of shareholders’ equity to generate profits.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Client Base: Trusted supplier to major automotive and engineering companies boosts reputation and reliability.
- Export-Oriented Business Model: 60% revenue from exports diversifies income and mitigates regional economic risks.
- Diversification and Expansion: Investment in new, value-added fasteners helps maintain market relevance and reduces dependency on specific sectors.
Cons
- Dependence on Raw Materials: Reliance on steel makes the company vulnerable to price fluctuations and supply chain disruptions.
- Economic Sensitivity: Performance tied to the health of automotive and engineering sectors, affecting sales during economic downturns.
- Competitive Pressure: Intense competition in the fasteners market requires continuous innovation and differentiation to maintain market share.
