Menon Bearings: Gaining Traction both operationally and stock wise

Capex:

+The company has done a capex of INR 8 crores for the brake shoes and the brake segment.

• A total capex of around INR 30 crores is planned for two existing segments, which will be done in a staggered manner by FY25.
• The company plans to fund their capex internally, with a marginal debt if necessary.

Market Share:

• The company has a healthy market share of 20% to 25% for the bi-metal segment.
• In the brake segment, they will carry OEMs aftermarket STOs having an existing supply network and a strong relationship with the OEMs.

Growth Plan:

• The company expects growth in coming quarters to be fueled not just by the brake segment but also by Alkop growth as it is a premium margin segment and has more scope due to customization needs.
• The company expects to grow revenue by 20% in both segments in the coming years.
• Menon Bearings is targeting a growth of 20% in both bi-metal and alkoxide segments.
• The company’s target is to reach INR 100 crores in business within the next three years.
• The company plans to expand into the aftermarket, state transport undertakings, private transporters, private operators, and OEMs.
• They also plan to tap into the export market potential of around INR 6,000 crores, with a focus on expanding into countries like Argentina and European countries.