Mangalam Alloys (MAL)

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

Key Financials

Strengths

• P/E of 4.35 and PEG of 0.01 suggest deeply discounted valuation if earnings sustain
• Latest quarter PAT of ₹12 Cr on sales of ₹219 Cr indicates improving margin of about 5.5%
• Piotroski F-score of 7/9 points to sound fundamentals across profitability, leverage, and efficiency
• Promoter holding at 59.74% aligns management with minority shareholders
• Sales growth of 10.72% shows demand expansion despite cyclical pressure

Concerns

• Iron & steel is a commodity business with limited pricing power and no apparent moat
• Profit growth of 1000% is likely from a low base and is not repeatable
• Zero dividend means no income support if the cycle turns down
• Tiny market cap of ₹105 Cr and 52-week range of ₹1.40-₹66.00 indicate high volatility and possible illiquidity
• Missing book value, debt/equity, and ROE data limits full balance sheet assessment

AI Analysis

At ₹40.40, Mangalam Alloys is exactly the sort of cheap, out-of-favour stock that Graham would walk into, but Buffett would ask one more question: Is this a wonderful business? Iron & steel is a commodity business. Mangalam appears to have no durable moat; it is a price taker in a cyclical global market. The numbers look extraordinary: market cap ₹105 Cr against latest quarter sales of ₹219 Cr and net profit of ₹12 Cr. Trailing P/E is 4.35 and the PEG is 0.01. ROCE is 15.73%, Piotroski 7/9, and promoter holding is 59.74%, so the promoters' interests are aligned. Sales grew 10.72%, and profit growth of 1000% suggests a sharp recovery from a depressed base. That should excite caution, not euphoria. In steel, low P/E can be a value trap when the cycle turns. The 52-week range, from ₹1.40 to ₹66.00, tells me this stock is volatile, speculative and unloved. There is no dividend, so shareholders rely entirely on the cycle, earnings and re-rating. If this quarterly profit of ₹12 Cr can be repeated, annualised earnings of ₹48 Cr would make ₹105 Cr remarkably cheap. But I cannot assume that. Graham taught me to demand a margin of safety and adequate data; here book value, debt/equity and ROE are missing. I would put this on my watchlist, not my wallet, until I understand the balance sheet and see steel prices supporting a sustainable cycle. As a possible cyclical bargain, it deserves a closer look, but not blind faith.

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