List of Murugappa Group Listed Companies: While most business houses make it to the limelight, there are some which operate discreetly for centuries. Their businesses are simple and grow consistently year after year.
This blog is going to talk about one such business house – The Murugappa Group. With a history of over 100 years, the Murugappa group has 29 businesses, out of which ten are listed on the NSE and BSE.
The Murugappa group operates in several different businesses – Bicycle manufacturing (BSA, Hercules) auto component manufacturing, and agriculture (sugar & tea) to name a few.
In each industry, the Murugappa group has set a benchmark that makes their companies stand out from the rest. For example, their subsidiary, EID Parry is the largest sugar manufacturer in South India.
The Bicycles arm of Murugappa is the 2nd largest manufacturer of bicycles in the country. The group has a whole list of achievements on its banner but for now, let’s take a look at the top 5 Murugappa Group Listed Companies.
Top 5 Murugappa Group Listed Companies
For the full list of Murugappa Group Listed Companies, scroll to the end of the article.
1. Cholamandalam Investment & Finance Company Ltd
At #1 on the list is Cholamandalam Investment & Finance. The company is an NBFC that provides financial services. This includes vehicle financing, home loans, and loans against assets such as real estate.
The company operates over 1,145 branches nationwide and its AUM exceeds ₹82,000 crores (Annual Report 2022).
Financial Performance Of Cholamandalam Investment & Finance Company –
|CMP||743||Market Cap (Cr.)||61,063|
|Promoter Holding||51.50%||Book Value||157|
|Net Profit Margin||21.2%||Price to Book Value||4.77|
|Operating Profit Margin||70.40%||Dividend Yield||0.27%|
With a market capitalization of ₹61,063 crores, Chola Investment & Finance is the largest listed company of the Murugappa Group.
Let’s take a 5-year overview of its performance. Sales revenue as of March 2018 was reported as ₹5,559 crores, resulting in net profits of ₹918 crores that same year.
In 2018 it had one of the highest financing margins for 6 years preceding this, at 26%. Fast forward 5 years, Chola Investment has steadily climbed upwards.
Here are the facts for FY2022 – Reported sales figures were ₹10,148 crores, bringing in a net profit of ₹2,154 crores. Their financing margin for the same period was 29%.
All 3 metrics are at their highest in the company’s 10-year performance, including 2 covid-affected years. Their 5-year profit growth is substantial at 24.5% CAGR.
Chola Investment’s stock PE is 26.1, and it is exactly on par with the industry PE (26.1), something that is rarely seen in the markets.
The company’s ROE (20.2%) and ROCE (9.34%) are quite high, indicating proper use of capital for business growth. Coming to the company’s shareholding –
Promoters hold a majority stake of 51.5%. The remaining ownership is divided among FIIs (18.6%) DIIs (21.9%) and the public (7.9%). In 3 years promoter holding has reduced by only 1.4%.
5-year returns of Cholamandalam Investment & Finance are quite good at 187%. Year to date it has given a positive return of 38%.
2. Tube Investments Of India Ltd
The bicycle business of the Murugappa Group is credited to Tube Investments Of India. Their business began as early as the 1950s making them one of the oldest bicycle manufacturers still in business.
Besides manufacturing, they also retail their products through their own retail stores under the Track & Trail brand. The other 2 businesses of Tube Investments are engineering and metal products.
Financials Of Tube Investments of India –
|CMP||2932||Market Cap (Cr.)||56,583|
|Face Value||1||Book Value||178|
|Promoter Holding||46.40%||Price to Book Value||16.4|
|Debt to Equity||0.26||Dividend Yield||0.12%|
|Net Profit Margin||7.78%||Operating Profit Margin||11.90%|
Tube Investments is the 2nd largest listed company of the Murugappa Group. With a market cap of ₹56,583 crores, it is a large-cap manufacturing company. Let’s take a look at their 5-year performance –
Reported sales as of FY2018 were ₹5,000 crores, amounting to a net profit of only ₹174 crores. This could be because the operating profit margin was just 7%, the lowest since their listing.
Tax rates for that year were also much higher at 21% and the company had a higher dividend payout of 17%.
As of FY22, the company reported net sales of ₹12,525 crores and net profits of ₹991 crores. Both figures are at an all-time high since listing.
Their operating profit margin has improved significantly to 12%. Another plus sign is a reduction in tax at 14% and a lower dividend payout of 9%.
Now, coming to the stock price, its P/E ratio is below the industry PE which stands at 122. This implies that the stock is fairly valued in comparison to the industry.
Both ROE(28.1%) and ROCE (29.4%) are quite impressive, making Tube Investments one of the best-performing companies in the group.
Another good sign is the company’s Debt to Equity ratio is at 0.26, which is a healthy and low level for a company of this size.
Next, coming to the shareholding. Promoters hold 46.4% of the company. An interesting observation here is FII’s interest in Tube Investments.
They held 14.29% of the company 3 years prior in Dec 2019. The latest data, as of September 2022 shows that FIIs hold over 26.3% of the company.
Finally, looking at the company’s stock return, it has done impressively well in 5 years, giving over a 10X return on investment. Year to date it has given a net positive return of 54.9%
3. CG Power & Industrial Solutions
While the name CG might not ring a bell, Crompton Greaves might. CG Power is the 3rd company on the list. The Murugappa Group acquired it in 2020 from the Avantha Group.
CG Power has three main businesses – Industrial, Power, and Railways. In all three sectors, the company manufactures important equipment that is used by consumers and industries.
Financials Of CG Power & Industrial Solutions –
|CMP||277||Market Cap (Cr.)||42,262|
|Face Value||2||Book Value||8.85|
|Promoter Holding||58.10%||Price to Book Value||31.3|
|Debt to Equity||0.18||Dividend Yield||0.00%|
|Net Profit Margin||8%||Operating Profit Margin||12.90%|
CG Power is a large-cap industrial company. It has a market capitalization of ₹42,262 crores and is the 3rd biggest Murugappa subsidiary.
A 5-year overview of the company shows that the company was mostly in losses before being acquired by the Murugappa group.
In 2018, they reported sales of ₹8,031 crores but a net loss of ₹715 crores. Their OPM at the time (2%) was quite insignificant as well.
In FY2022, the company reported sales of ₹5,561 crores. While this is much lower than its 2018 figures, it still managed to report a profit of ₹913 crores. Even OPM margins increased drastically to 12%.
CG Power’s stock PE is 72.9, well over double that of the industry PE of 35.7. This indicates that the stock is highly overpriced currently.
ROE (108%) and ROCE(44.9%) are extremely high given the company’s had a negative ROE for the last 3 years. This could indicate a turnaround in business management in the future.
CG Power has reduced debt and maintained a safe D/E ratio of 0.18. Coming to the shareholding, promoters own 58.1% stake but they have pledged most of it(87.7%). This could be a part of the restructuring of the company’s debt.
Despite unsteady years, the stock has performed well. In 5 years, CG Power & Industrial solutions have given a 227% return on investment. Even year to date its stock has gone up by 41.2%
4. Coromandel International Ltd
Coromandel International is an agrochemical company. They manufacture fertilizers, pesticides, crop nutrition, and more. The company’s entire focus is the agricultural industry.
The company is one of the leaders in agrochemicals and pesticides in India. Besides manufacturing, they also export their products to the USA, Canada, and Europe.
Financials Of Coromandel International –
|CMP||963||Market Cap (Cr.)||28,307|
|Face Value||1||Book Value||253|
|Promoter Holding||57.4||Price to Book Value||3.81|
|Debt to Equity||0.22||Dividend Yield||1.25|
|Net Profit Margin||8.02||Operating Profit Margin||10.6|
Coromandel is a large-cap agrochemical company. Its market cap is over ₹28,307 crores. For almost 8 years, Coromandel has reported sales of over ₹10K crores every year.
As of 2018, it reported sales of ₹11,083 crores, with a net profit of ₹691 crores. Their OPM was 11% and stayed the same in FY2022. Sales and net profits have grown positively and consistently.
This is despite 1 year of stagnated growth (in 2020). FY2022 the company posted sales of ₹19,111 crores and profits of ₹1,528 crores. Both are remarkable figures and are at their 10-year peak.
Coming to the PE ratio, the stock P/E (14.8) is marginally higher than its industry (13.9). This shows that the stock is currently trading close to its fair value.
Seeing the growing sales and net profits pattern, it is no surprise that their ROE (26.6%) and ROCE (34.7%) are at positively good levels. The company has managed its debt well with a D/E ratio of 0.22.
Promoters own 57.4% of the company, but their holding has reduced by 4.2% in 3 years. Yet FIIs have tripled their holding simultaneously from 3.5% to 9.9%.
Year to date, Coromandel International has given a positive 27% return. Even their 5-year returns have been positive. But it is lower than the other Murugappa companies at just 88.5%.
5. Carborundum Universal Ltd
Carborundum is one of the older companies of the Murugappa group. It began as a collaboration between Carborundum USA, Universal Grinding Wheel, and the Murugappa group in 1954.
It is an engineering company that makes abrasives, ceramics, and electro-minerals. They have a global presence in over 40 countries.
Financials Of Carborundum Universal –
|CMP||854||Market Cap (Cr.)||16,210|
|Face Value||1||Book Value||144|
|Promoter Holding||41.9||Price to Book Value||5.92|
|Debt to Equity||0.16||Dividend Yield||0.41|
|Net Profit Margin||10.6||Operating Profit Margin||13.8|
Carborundum is the 1st mid-cap company on this list, with a market cap of ₹16,210 crores. The 5-year overview is as follows –
Sales and net profits of FY2018 were ₹2,374 crores and ₹220 crores respectively. These figures are with an OPM of 17%. FY2022 they reported sales & net profits of ₹3,325 crores and profits of ₹350 crores.
This shows a slow sales growth rate, with 3 consecutive years of stagnant sales and profits. OPM for this period has changed marginally by only 1-2%. Carborundum Universal’s stock P/E is 49.7, very close to the industry P/E of 67.65.
The stock is fairly valued to its industry at its current price. ROE and ROCE are at moderate levels of 20.2% and 14.9%. Despite a slow growth rate, the company has managed to maintain low debt with a D/E ratio of 0.16.
The shareholding pattern shows promoters hold a 41.9% stake in the company. There has been no significant change in promoter movement in the past 3 years. Finally coming to the returns of the stock.
Year to date, the stock has fallen in value by 15.2%. The 5-year return on investment is well over 126%, making it a multi-bagger.
Murugappa Group Listed Companies Table –
|S. No.||Company Name||Market Cap (Rs. In Cr.)||Industry||CMP|
|1||Cholamandalam Investment & Finance Company Ltd||61206.82||Finance||745|
|2||Tube Investments of India Ltd||55511.09||Engineering||2876|
|3||CG Power & Industrial Solutions||42,513.79||Electrical||278.4|
|4||Coromandel International Ltd||28257.25||Agrochemicals||961.1|
|5||Carborundum Universal Ltd||15911.07||Engineering||837.85|
|6||Cholamandalam Financial Holdings Ltd||11370.8||Investment||605.6|
|7||EID Parry (India) Ltd||10649.49||Sugar||600|
|8||Shanthi Gears Ltd||2894.5||Auto Ancillary||377.3|
|9||Wendt India Ltd||1595.67||Auto Ancillary||7978.35|
|10||Coramandel Engineering Company||128.61||Engineering||38.7|
The Murugappa Group has a diversified business and has maintained healthy leadership positions in its sectors. The business group is also preparing for the future.
The company is seeking to roll out e-HCVs by December 2022 through its subsidiary, Tube Investments India (TII). This comes after the launch of their 3-wheeler EV brand Montra in September 2022.
Want to read about more such business houses? Comment below and let us know. Happy Investing!
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