Magnus Steel (517320)

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 260.47% and profit growth of 775% show strong recent momentum.
• Piotroski F-Score of 7/9 suggests broad near-term fundamental improvements.
• ROCE of 105.56% indicates high operational return on capital employed.
• Latest quarter net margin is roughly 16.7%: ₹1 Cr profit on ₹6 Cr sales.
• PEG of 0.20 appears optically cheap if the growth can persist.

Concerns

• P/E of 101.08 and market cap of ₹324 Cr against annualised profit of roughly ₹4 Cr leave no margin of safety.
• ROE of -194.47% with book value unavailable points to possible negative shareholder equity.
• Current price of ₹6.49 is below the stated 52-week low of ₹8.75 and far below the high of ₹223.40, showing severe market distrust.
• No dividend, no promoter holding disclosure, and tiny absolute quarterly sales of ₹6 Cr make the numbers unreliable.

AI Analysis

Let me start with the obvious: I cannot value a business I don't understand, and I certainly cannot trust financial engineering that masquerades as growth. Magnus Steel trades at ₹6.49, yet its 52-week range is ₹8.75 to ₹223.40. A stock that trades below its supposed low is either a broken data feed or a market telling me to stay away. Market cap ₹324 Cr and latest quarterly net profit ₹1 Cr: annualise that and you get ₹4 Cr against a ₹324 Cr tag. The given P/E of 101.08 confirms it. For a company in 'Other Electrical Equipment' with no clear economic moat, I demand a bargain price; this is the opposite. Yes, sales are up 260.47% and profit up 775%, but from what base? Quarterly sales are only ₹6 Cr. A small contract can cause percentage hockey sticks. Piotroski F-Score of 7/9 shows some genuine improvement, and ROCE of 105.56% sounds impressive, but ROE is -194.47% and book value is unavailable. Positive profit with a deeply negative ROE makes me suspect book equity has been destroyed; there is no margin of safety in a negative net worth. Debt-to-equity is missing, which is hardly reassuring. No dividend, no promoter data, and a price collapse from ₹223.40: this is not a Graham-style net-net or a Buffett-style compounder. The PEG of 0.20 exists only because profits jumped 775%, but I will not extrapolate that. One good quarter is not a franchise. If I owned it, I would follow the cash and the balance sheet every quarter. Until book value turns positive and earnings are proven over many quarters, this is speculation, not investing.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer