Manaksia (MANAKSIA)

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

Key Financials

Strengths

• Low leverage with debt/equity of 0.06, providing balance sheet cushion
• Reasonable headline valuation: P/E of 7.30 with profit growth of 10.53%, giving a PEG of 0.69
• Latest quarter profitable: ₹15 Cr net profit on ₹184 Cr sales
• High promoter holding of 74.93% aligns interests
• Piotroski F-score of 6/9 suggests moderate financial health

Concerns

• Sales declined 2.06%, showing weak top-line momentum
• ROE of 7.42% is modest, while P/B of 2.21 means paying a premium to book for that return
• Zero dividend yield offers no income support to shareholders
• Iron and steel is inherently cyclical, with limited pricing power or durable moat

AI Analysis

Let's look at Manaksia through Graham's lens. It's an iron and steel products company, so my first instinct is to call it a cyclical, not a franchise with pricing power. At ₹61.55, market cap ₹391 Cr, P/E 7.30. That looks cheap. But cheap for a reason? Sales fell 2.06%, no dividend, book value ₹27.82. P/B 2.21 means I'm paying over two times net worth for a business earning only 7.42% on equity. That is not compelling. Graham would ask for margin of safety; on earnings perhaps, but on assets less so. ROCE 11.82% is acceptable, but not a wonderful business. Balance sheet is clean: debt/equity 0.06, and Piotroski 6/9 indicates financial health is okay, not superb. Profit grew 10.53% despite lower sales, so margins did some work; latest quarter net profit ₹15 Cr on ₹184 Cr sales suggests an 8% margin. Yet steel is cyclical, and a single quarter or year doesn't prove durability. Promoter holding 74.93% aligns owner and management, but minority shareholders have no dividend to show while waiting. PEG 0.69 looks attractive only if the growth continues; I wouldn't rely on extrapolating one year. I'd call this a cyclical that's moderately priced, not a wonderful business at a fair price. I need evidence that sales growth returns and margins hold before deploying capital. If steel turns down, low debt provides some cushion, but P/B still leaves little asset protection. I would keep it on the watch list, not a buy.

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