Auto Stock Jumps 4% After Winning a Fresh Business Deal from Honda

Synopsis: Auto Ancillary stock rose 4% after securing a new domestic long-term order from Honda Motorcycle & Scooter India for sheet metal stamping and welding parts, including tooling and die development, boosting market sentiment.

The shares of this company manufacture and sell auto components and designs, develop, test, and produce various composite molds and products for different industries are in the spotlight after it rose in today’s market session following it sacred an order from Honda Motorcycle and Scooter India Pvt Ltd.

With a market capitalisation of Rs.  913 cr, the shares of Munjal Auto Industries Ltd were trading at Rs. 91.35 per share, increasing 3.5% in today’s market session, making a high of Rs. 96.94, up from its previous close of Rs. 93.66 per share. The stock has gained 24% over the past year, 15% year-to-date, 2% in the last six months, and 17% in the past month.

About the order 

Munjal Auto Industries Ltd has informed that it has been awarded a new business order from Honda Motorcycle and Scooter India Pvt. Ltd on May 11, 2026. The order involves the manufacturing and supply of sheet metal stamping and welding parts, strengthening its presence in the automotive components segment.

The contract is a domestic long-term supply arrangement and also includes design and development of tooling and dies, indicating deeper integration in the value chain. The company clarified that no promoters, directors, or key managerial personnel have any interest in the transaction, and it does not fall under related party dealings.

About the company 

Munjal Auto Industries Ltd is an Indian automotive component manufacturing company, part of the Hero Group. The company produces a wide range of auto parts such as exhaust systems, fuel tanks, wheel rims, and sheet metal and composite components used in two-wheelers and four-wheelers. It also supplies assemblies like BIW (Body-in-White) parts, control arms, and other structural components to the automotive industry. 

Sales of the company have increased from Rs. 584 cr in Q2FY26 to Rs. 606 cr in Q3FY26. Operating profit rose to Rs. 42 cr from Rs. 26 cr. Net profit also rose from Rs. 13 cr to Rs. 15 cr over the same period. 

The company reported a 5-year compounded profit growth of 57% and a 3-year growth of 16%, while compounded sales growth stood at 11% over 5 years and 3% over 3 years, indicating moderate revenue expansion with relatively stronger long-term profit improvement.

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