Stock under Rs 100 is in focus as this pistons manufacturing company is to borrow Rs 14 crore for a new investment plan in Solar Energy Project

The stock’s 52-week high is Rs 125.90 and its 52-week low is Rs 65.

Menon Pistons Limited held a meeting of its Board of Directors on Wednesday, August 14, 2024. During this meeting, the directors deliberated on various matters, including a proposal to secure additional funds. The Board granted preliminary approval for the company to borrow up to a sum of Rs 14 crore. This financial infusion is intended to support a new investment initiative focused on a solar energy project.

Menon Pistons Ltd (MPL) is a manufacturer specializing in high-precision piston assemblies and engineering components. Established in 1971, the company produces a diverse range of products including aluminium and steel pistons, piston pins, and other engine components. MPL caters to various sectors such as passenger cars, commercial vehicles, and heavy-duty diesel engines used in power generation, construction and industrial applications. Their product portfolio also extends to engine valvetrain components, hydraulic systems and precision machined parts.

MPL operates a manufacturing facility in Kolhapur with a substantial production capacity for pistons, piston pins, and plungers. Despite having a customer base that includes both original equipment manufacturers (OEMs) and the replacement market, the company's revenue is heavily concentrated on two key clients, Cummins India Limited and Menon Export, together accounting for approximately 40 per cent of their total sales. This reliance on a limited number of customers poses a significant risk to the company's financial stability.

The company had a market cap of over Rs 440 crore. According to Quarterly Results, the company reported net sales of Rs crore and net profit of Rs crore in Q1FY25 while in its annual results, the company reported net sales of Rs crore and net profit of Rs crore in FY24.

On Wednesday, shares of Menon Pistons Ltd plunged 0.44 per cent to Rs 86.77 per share with an intraday high of Rs 87.15 and an intraday low of Rs 86.10. The stock’s 52-week high is Rs 125.90 and its 52-week low is Rs 65.

Disclaimer: The article is for informational purposes only and not investment advice. 

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