Mohindra Fasteners Unlisted Shares

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Mohindra Fasteners is leading fastener makerMohindra Fasteners (MFL) is a leading company in the Indian Fastener industry. The company offers a wide range of cold and hot forged fasteners and precision machined components for Automotive and Industrial applications. It has significant market share both in the domestic and the overseas market.

The company was incorporated as a Public Limited Company on 10 January 1995. The Promoters’ family having an experience of over 50 years in Fastener trading. The company manufactures high-tensile fasteners for the automobile industry and industrial applications. It manufactures various types of hot and cold-forged fasteners, i.e. screws, studs, bolts etc., at its three manufacturing facilities at Rohtak, near Delhi. In addition to catering the domestic market, Mohindra Fasteners derives about half of its total revenue from exports to Europe, Canada and the US.

Located at Rohtak, Haryana (About 50 kilometers from the New Delhi International Airport), MFL is a name to reckon in the Fastener Industry. The company’s infrastructure is spread across three state-of-the-art plants with latest equipments for manufacturing high quality fastener assortments.

MFL’s operations are conforming to ISO 9001:2015, IATF 16949:2016 for practicing System – Oriented business practices and implementing Quality policies as per Quality Management System (QMS).

Its wide range of products are categorized under three industry verticals comprising of:
– Standard / Norm Parts
– Parts by Drawing / Automotive Parts
– Stainless Steel Parts

BOARD OF DIRECTORS
Chairman Cum Managing Director & CEO Mr. Deepak Arneja
Managing Director Mr. Ravinder Mohan Juneja
Chief Financial Officer Mr. Sunil Mishra
Non – Executive Director Mr. Gagandeep Singh Narang
Non – Executive & Independent Director Mr. Vinod Kumar
Non – Executive & Independent Director Mr. Ved Prakash Chaudhry
Non – Executive & Independent Director Mrs. Shamoli Thakur

The company’s diversified presence across multiple automobile segments like two-wheelers, passenger vehicles (PVs), commercial vehicles (CVs) and other industrial usages support its credit profile. MFL will continue to benefit from the experience of its promoters and their established clientele. Further, a change in product mix (increasing share of specialised fasteners) and operational efficiencies should help the company achieve strong profitability.

Experienced management with long track record in the industry: The company’s promoters have been involved in the fastener manufacturing industry for more than five decades. Its relationship with OEMs and suppliers has helped the  company to grow at a healthy pace in the last few years.

The global industrial fasteners market is expected to reach a value of Rs 7706 Billion by 2023, expanding at a CAGR of 6.5% from 2018 (Source: ResearchAndMarkets.com). Rising demand for fasteners in the automotive industry, coupled with an increase in construction and manufacturing spending in emerging countries like China, Brazil, Saudi Arabia, Australia, Indonesia and India, is expected to drive the demand for industrial fasteners during the forecast period.

The Indian industrial fasteners market is segmented on the basis of application, product type and the organization of the market. The Indian automotive sector is expected to be the largest consumer of industrial fasteners; it is followed by the construction and the engineering sector.

The Indian industrial fasteners market is expected to reach a value of Rs 460 Billion by 2023 expanding at a
CAGR of 9.6% from 2018 (Source: ResearchAndMarkets.com). Fastener companies usually sell their products in
India through various distribution channels- distributors, direct dealers, online channels and industrial events. Delicensing of the industry is facilitating the entry of major global manufacturers in the Indian market. The majority
of fasteners that were imported by India in FY 2018 was other screws and bolts, whether or not with their nuts or
washers followed by other non-threaded articles and threaded nuts.

Strong financial performance

PARTICULARS  (Rs crore) FY 2019 FY 2018
Total Income/Revenue 135.52 115.49
Net Profit 9.1 6.03
EPS 17 11.26

During the financial year 2018-19; the company has earned revenue from operations Rs. 134.83 crore
(Previous year Rs 113.94 crore) and net profit of the company was Rs 9.10 crore (Previous year Rs.
6.03 crore). The Board has recommended a final dividend at the rate of Rs 3 per fully paid up equity shares, for the financial year 2018-19.

The highlights of the company performance during the Financial Year 2018-19 are as under:
1. Revenue from operations increased by 18.33% to Rs 134.83 crore.
2. Export Sales increased by 31.92% to Rs 83.50 crore.
3. EBIDT increased by 26.15% to Rs 17.26 crore.
4. Profit before tax increased by 32.17% to Rs 12.03 crore.
5. Net Profit increased by 50.95% to Rs 9.10 crore.

The company is currently operating in two business verticals viz. Domestic sales which constitute about 40%
of the sales revenue and Exports which constitute about 60% of the sales revenue. Export sales of the company increased by 31.92% from Rs 63.30 crore to Rs 83.50 crore. The volume growth accompanied by a favorable exchange rate movement helped the company grow at a healthy rate.

The domestic sales constitute supply of High tensile fasteners to the two wheeler (direct supplies to Hero
MotoCorp Ltd) and to a lot of Tier 1 vendors of Maruti Suzuki, Hyundai and Tata Motors Ltd. All the above
sectors remained buoyant in the year gone by and had shown good growth in the previous year.

Mohindra Fastners (MFL) Unlisted Shares details:
CIN L74899DL1995PLC064215
Registration Date 10 January 1995
ISIN INE705H01011

The Securities of Mohindra Fasteners are listed at Metropolitan Stock Exchange of India Limited (MSEI). The scrip
is listed under the symbol/scrip code named as “MFL”. The Annual Listing Fees for the
year 2019-20 has been paid to the Stock Exchange and there are no arrears. The MSEI has nation-wide trading
terminals and therefore provides full liquidity to the investors.

The company’s continued investments towards development and manufacture of new products are expected to result in further improvement in performance in the years ahead despite a slow down as focus is more on adding specials and value added parts.

The company has a 3 acre industrial land at IMT Rohtak which is fully paid from company’s resources. Hence, it will shortly prepare a plan to kick start the green field expansion on this industrial land. The company is exploring different business opportunities across our Export/Domestic customers to decide the right product mix to produce before finalizing the machinery. It expects to start the construction activity within this financial year itself.

Health dividend (Rs per share)

Year Dividend
2011-12 1.5
2012-13 1.6
2013-14 1.8
2014-15 2
2015-16 2
2016-17 2.25
2017-18 2.5
2018-19 3

Fairly diversified client profile with established relationship with major OEMs: The company has been supplying to
reputed OEMs like Hero MotoCorp Limited, and has been regularly expanding its capacity to support the clients. The
company has a moderately diversified customer base in both domestic and exports market with the top-five clients
accounting for approximately 40% of its overall sales. The company has diversified presence across multiple automotive
segments like two-wheelers, PVs, CVs, and other industrial usages.

Mohindra Fasteners is capable of efficiently handling Carbon / Alloy / Ball-Bearing / Spring / Stainless steel for manufacturing various products and applications. It has facilities for Hot and Cold Forging, Turning, Milling, Grinding & Drilling, Machining in the same premises.

Using efficient and reliable Supply chain module, MFL delivers to Automotive OEMs, their Tier I suppliers and Heavy engineering & Infrastructure manufacturers all across India. Proven track record in the industry has made Mohindra Fasteners preferred choice for Fastener requirements. It has customers in all leading Developed Nations; with the customers ranging from Norm Distributors to OE based Distributors and Tier One suppliers.

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