Flash News Investment - - RECOMMENDATIONS -

We had rec­om­mended Menon Pis­tons on May 25, 2017, on the ba­sis of pos­i­tive auto sec­tor out­look and ex­pected vol­ume growth due to change in emis­sions norms trig­ger­ing re­place­ment de­mand. Menon Pis­tons was im­pacted by GST and un­cer­tainty re­lated to the same in Q1FY18 and also the higher metal prices pres­surised the mar­gins. Hence, rev­enue fell by 10 per cent to Rs.33 crore and EBITDA dropped by 20 per cent. This led to de­cline in PAT by 27 per cent. We see that share price has re­cov­ered as the un­cer­tainty on GST has been cleared and the auto sales data has been pos­i­tive. Hence, we urge in­vestors to BOOK PROFIT on the scrip.

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