Manaksia Coated (MANAKCOAT)

FairStock Score: 22/100 — RISKY

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

Key Financials

Strengths

• High ROE of 26.48% with a moderate debt/equity of 0.31 suggests efficient capital use without excessive leverage.
• Promoter holding of 57.46% aligns management interests with minority shareholders.
• Profit growth of 45.87% and a Piotroski F-Score of 6/9 indicate improving fundamentals.
• ROCE of 15.60% is reasonable for a capital-intensive coated steel processor.
• Current price of ₹107 is closer to the 52-week low of ₹94.20 than the high of ₹182.82, giving some downside comfort.

Concerns

• Valuation is rich: P/E of 30.72 and P/B of 7.34 versus book value of only ₹14.57 per share.
• Sales declined 8.85%, and the latest quarter's net margin is only ~3.7% (₹7 Cr profit on ₹187 Cr sales), showing weak topline and thin profitability.
• Dividend yield of 0.04% is negligible, so shareholders get almost no income cushion.
• Being an iron and steel product company, earnings are cyclical and the high profit growth may not be sustainable.

AI Analysis

At ₹107, Manaksia Coated has a market cap of ₹1,248 Cr but a book value of just ₹14.57 per share. I am being asked to pay 7.34 times book for a coated steel processor whose sales fell 8.85% last year. Graham would ask: where is the margin of safety? The 26.48% ROE and 15.60% ROCE are respectable, and debt/equity of 0.31 is conservative. But those returns may be cyclical, not durable. Profits grew 45.87% while sales declined, which sounds nice, yet the latest quarter's net profit of ₹7 Cr on ₹187 Cr of sales is only about a 3.7% net margin. That is thin in a commodity-linked industry. The P/E of 30.72 is far from cheap, and with a dividend yield of just 0.04%, I get no income while I wait. Promoter holding of 57.46% offers some comfort, and the stock sits closer to its 52-week low of ₹94.20 than its high of ₹182.82. The Piotroski F-Score of 6/9 points to acceptable financial health, and the PEG of 0.67 suggests the market is pricing in continued high growth. But in cyclical businesses, a low PEG and a sudden profit jump can be misleading. The latest quarter's modest absolute profit reminds me that the earnings power is still small relative to the ₹1,248 Cr market cap. I would need proof that coated steel volumes are growing and margins are sustainable before committing capital. This is not a wonderful business at a fair price; it is a so-so business at a price that builds in perfection. I would wait for a lower price or clear evidence that the profit jump is not just temporary product spreads.

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