Maithan Alloys (MAITHANALL)

FairStock Score: 36/100 — MIXED

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

Key Financials

Strengths

• P/B of 0.80 with book value ₹1,255.58 versus market price ₹1,010.65 provides a substantial asset-based margin of safety.
• Conservative balance sheet: debt/equity of 0.11 and strong ROCE of 27.95% show capital efficiency.
• Promoter holding at 74.96% aligns interests with minority shareholders.
• Low P/E of 6.60 and dividend yield of 1.59% provide valuation support and modest income.
• Latest quarter net profit of ₹93 Cr on ₹490 Cr sales shows the business is still profitable.

Concerns

• Piotroski F-Score of 3/9 signals deteriorating fundamentals and weak financial health signals.
• Sales growth of -7.68% and profit growth of -2.12% show negative momentum.
• Ferro alloy business is commodity-like with limited pricing power and high cyclicality.
• ROE of 12.29% is moderate, and FairStock Score of 38/100 suggests the risk-reward is mixed.

AI Analysis

Let me start with what I can measure. Maithan Alloys sells ferro and silica manganese—a commodity product where prices are made by the market, not by the company. That immediately tells me I need a big margin of safety. At ₹1,010.65, the stock trades at 6.6 times earnings and 0.8 times book value, while book value stands at ₹1,255.58. That is an asset cushion. The balance sheet is conservative: debt/equity is only 0.11, and return on capital employed is 27.95%, so the business is generating good returns without much leverage. Promoters holding 74.96% also align their interests with minority shareholders. But Graham would ask: is the earning power durable? Here I pause. Sales fell 7.68% and profit fell 2.12%. The latest quarter shows sales of ₹490 Cr and net profit of ₹93 Cr, but the trend is not inspiring. The Piotroski F-Score of 3/9 is a red flag—it tells me financial quality is weakening despite the attractive ratios. ROE of 12.29% is respectable, not wonderful, and a commodity maker has no lasting moat. The stock is below its 52-week midpoint, but cheap can become cheaper in a cyclical downturn. I would not call this a stalwart. This is a cyclical, possibly an asset play. I would need evidence that manganese prices have bottomed and that working capital quality is improving. If the cycle turns, the low book value and low leverage give upside. If it does not, cheap valuation alone is not enough. I will keep it on the watchlist, not in the circle of confidence.

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