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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Manaksia Steels Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:49 pm

Market Cap 389 Cr.
Current Price 59.2
High / Low107/43.3
Stock P/E31.9
Book Value 45.7
Dividend Yield0.00 %
ROCE10.2 %
ROE8.62 %
Face Value 1.00
PEG Ratio1.12

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Manaksia Steels Ltd

Competitors of Manaksia Steels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Incredible Industries Ltd 206 Cr. 43.863.6/31.026.6 29.10.00 %9.09 %4.61 % 10.0
Eastcoast Steel Ltd 10.7 Cr. 19.835.1/17.7 34.80.00 %3.78 %4.64 % 10.0
Bonlon Industries Ltd 47.9 Cr. 33.856.0/29.516.9 56.60.00 %4.56 %2.99 % 10.0
Beekay Steel Industries Ltd 1,179 Cr. 618845/5499.28 5260.16 %10.7 %11.2 % 10.0
Ecofinity Atomix Ltd 22.1 Cr. 57.369.7/32.130.2 9.840.00 %8.85 %8.56 % 10.0
Industry Average37,446.23 Cr312.2761.72145.160.37%8.74%9.17%7.50

All Competitor Stocks of Manaksia Steels Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales112.44116.71138.03108.56162.58201.75194.37156.38155.88235.75218.23166.33133.60
Expenses102.66104.18122.51100.77151.64182.86189.91151.83152.05224.54204.79156.55127.39
Operating Profit9.7812.5315.527.7910.9418.894.464.553.8311.2113.449.786.21
OPM %8.70%10.74%11.24%7.18%6.73%9.36%2.29%2.91%2.46%4.76%6.16%5.88%4.65%
Other Income1.781.372.783.051.151.240.072.243.461.502.734.535.54
Interest0.430.330.320.250.370.620.410.850.881.790.720.682.96
Depreciation2.532.742.762.732.732.652.642.682.542.421.971.831.83
Profit before tax8.6010.8315.227.868.9916.861.483.263.878.5013.4811.806.96
Tax %19.53%28.53%26.74%25.83%11.57%38.37%54.73%24.54%26.61%26.71%24.70%24.49%30.75%
Net Profit6.927.7511.155.837.9510.390.662.462.846.2210.158.924.81
EPS in Rs1.061.181.700.891.211.590.100.380.430.951.551.360.73

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales503688536504611742754
Expenses472667517465558718713
Operating Profit32201939532441
OPM %6%3%4%8%9%3%5%
Other Income24378714
Interest4322246
Depreciation8691011108
Profit before tax22161134491741
Tax %30%48%18%23%28%29%
Net Profit168927351230
EPS in Rs2.381.271.314.055.391.864.59
Dividend Payout %0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-50.00%12.50%200.00%29.63%-65.71%
Change in YoY Net Profit Growth (%)0.00%62.50%187.50%-170.37%-95.34%

Manaksia Steels Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2018-2019 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:0%
3 Years:11%
TTM:-27%
Compounded Profit Growth
10 Years:%
5 Years:26%
3 Years:1%
TTM:-57%
Stock Price CAGR
10 Years:%
5 Years:46%
3 Years:23%
1 Year:31%
Return on Equity
10 Years:%
5 Years:8%
3 Years:9%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:34 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital77777777
Reserves169179185216260284294293
Borrowings96361671049186133
Other Liabilities1041471515874813442
Total Liabilities375335403348350420520474
Fixed Assets6968998877725963
CWIP62830573271
Investments71711255212918580
Other Assets295223291235216212244261
Total Assets375335403348350420520474

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-10130-436-124-52
Cash from Investing Activity +-22-36-26-6859-63-81
Cash from Financing Activity +34-96535-5935130
Net Cash Flow2-223-27-1-4-3

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-64.0017.00-42.00-28.0043.00-25.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6944301418814
Inventory Days1175511684847491
Days Payable7580110101097
Cash Conversion Cycle111193788927399
Working Capital Days113254545755094
ROCE %8%5%13%17%6%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.75%74.75%74.75%74.75%74.75%74.75%74.75%74.75%74.75%74.75%74.75%74.75%
FIIs0.13%0.17%0.10%0.13%0.20%0.10%0.12%0.73%0.96%0.88%0.78%0.73%
DIIs0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public25.13%25.08%25.15%25.12%25.05%25.15%25.12%24.51%24.29%24.37%24.48%24.52%
No. of Shareholders22,86623,45326,99629,25328,86028,18627,09626,98527,59927,85334,56033,442

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)4.331.865.394.051.31
Diluted EPS (Rs.)4.331.865.394.051.31
Cash EPS (Rs.)5.393.437.055.602.74
Book Value[Excl.RevalReserv]/Share (Rs.)45.8544.3140.6034.0029.17
Book Value[Incl.RevalReserv]/Share (Rs.)45.8544.3140.6034.0029.17
Revenue From Operations / Share (Rs.)103.93113.2893.2276.9481.85
PBDIT / Share (Rs.)8.104.789.367.123.38
PBIT / Share (Rs.)7.033.217.705.571.95
PBT / Share (Rs.)5.772.617.475.251.61
Net Profit / Share (Rs.)4.331.865.394.051.31
NP After MI And SOA / Share (Rs.)4.331.865.394.051.31
PBDIT Margin (%)7.794.2110.049.254.12
PBIT Margin (%)6.762.838.267.242.37
PBT Margin (%)5.552.308.016.821.96
Net Profit Margin (%)4.161.645.785.261.60
NP After MI And SOA Margin (%)4.161.645.785.261.60
Return on Networth / Equity (%)9.444.1913.2711.914.49
Return on Capital Employeed (%)14.867.0518.5616.026.57
Return On Assets (%)5.452.9010.087.602.13
Total Debt / Equity (X)0.610.160.030.290.30
Asset Turnover Ratio (%)1.451.931.581.101.55
Current Ratio (X)1.792.392.741.141.26
Quick Ratio (X)1.121.361.400.420.59
Inventory Turnover Ratio (X)4.215.364.822.744.73
Interest Coverage Ratio (X)6.467.9739.5122.159.96
Interest Coverage Ratio (Post Tax) (X)4.464.1023.7413.604.87
Enterprise Value (Cr.)542.93262.78274.17204.0257.19
EV / Net Operating Revenue (X)0.790.350.440.400.10
EV / EBITDA (X)10.238.394.474.372.58
MarketCap / Net Operating Revenue (X)0.560.300.460.300.08
Price / BV (X)1.290.791.070.690.22
Price / Net Operating Revenue (X)0.560.300.460.300.08
EarningsYield0.070.050.120.170.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Manaksia Steels Ltd as of November 22, 2024 is: 128.18

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Manaksia Steels Ltd is Undervalued by 116.52% compared to the current share price 59.20

Intrinsic Value of Manaksia Steels Ltd as of November 22, 2024 is: 164.71

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Manaksia Steels Ltd is Undervalued by 178.23% compared to the current share price 59.20

Last 5 Year EPS CAGR: 28.50%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (235.00 cr) compared to borrowings (75.63 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (619.71 cr) and profit (27.14 cr) over the years.
  1. The stock has a low average ROCE of 8.43%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 63.86, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 74.14, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Manaksia Steels Ltd:
    1. Net Profit Margin: 4.16%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.86% (Industry Average ROCE: 8.74%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.44% (Industry Average ROE: 9.17%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.46
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.12
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 31.9 (Industry average Stock P/E: 61.72)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.61
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Manaksia Steels Ltd. is a Public Limited Listed company incorporated on 07/06/2001 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27101WB2001PLC138341 and registration number is 138341. Currently Company is involved in the business activities of Manufacture of hot-rolled and cold-rolled products of steel. Company’s Total Operating Revenue is Rs. 504.52 Cr. and Equity Capital is Rs. 6.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelTurner Morrison Building, 6 Lyons Range, Kolkata West Bengal 700001info.steels@manaksia.com
http://www.manaksiasteels.com
Management
NamePosition Held
Mr. Varun AgrawalManaging Director
Mr. Suresh Kumar AgrawalNon Executive Director
Mr. Mrinal Kanti PalNon Executive Director
Dr. Kali Kumar ChaudhuriInd. Non-Executive Director
Mr. Ramesh Kumar MaheshwariInd. Non-Executive Director
Mr. Biswanath BhattacharjeeInd. Non-Executive Director
Mrs. Nidhi BahetiInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Manaksia Steels Ltd?

The latest intrinsic value of Manaksia Steels Ltd as on 22 November 2024 is ₹128.18, which is 116.52% higher than the current market price of ₹59.20.

What is the Market Cap of Manaksia Steels Ltd?

The Market Cap of Manaksia Steels Ltd is 389 Cr..

What is the current Stock Price of Manaksia Steels Ltd as on 22 November 2024?

The current stock price of Manaksia Steels Ltd as on 22 November 2024 is ₹59.2.

What is the High / Low of Manaksia Steels Ltd stocks in FY 2024?

In FY 2024, the High / Low of Manaksia Steels Ltd stocks is 107/43.3.

What is the Stock P/E of Manaksia Steels Ltd?

The Stock P/E of Manaksia Steels Ltd is 31.9.

What is the Book Value of Manaksia Steels Ltd?

The Book Value of Manaksia Steels Ltd is 45.7.

What is the Dividend Yield of Manaksia Steels Ltd?

The Dividend Yield of Manaksia Steels Ltd is 0.00 %.

What is the ROCE of Manaksia Steels Ltd?

The ROCE of Manaksia Steels Ltd is 10.2 %.

What is the ROE of Manaksia Steels Ltd?

The ROE of Manaksia Steels Ltd is 8.62 %.

What is the Face Value of Manaksia Steels Ltd?

The Face Value of Manaksia Steels Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Manaksia Steels Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE