Mangal Electrica (MEIL)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• Low leverage: Debt/Equity of 0.12 gives financial cushion.
• High ROCE of 30.43% indicates efficient capital deployment.
• Promoter holding of 74.79% aligns ownership with minority investors.
• Prices close to book value: P/B 1.19, book value ₹252.58.
• Latest quarter shows ₹13 Cr net profit on ₹156 Cr sales, an 8.3% margin.

Concerns

• Profit growth is negative at -1.83% despite sales growth of 4.62%, showing margin pressure.
• Piotroski F-Score of 4/9 and FairStock Score of 24/100 flag financial risk.
• No dividend, so investor returns depend entirely on growth that has not materialized.
• PEG of 3.17 is expensive relative to low single-digit growth, and the stock is down sharply from ₹573.70.

AI Analysis

At ₹300.45, Mangal Electrica is no obvious Graham bargain. The market cap is ₹650 Cr, and while the P/E of 14.65 looks reasonable, the P/B of 1.19 and book value of ₹252.58 tell me the market is paying only a small premium to net worth. That is a decent starting point, but I need earning power, and here the picture is mixed. ROCE is 30.43% and debt/equity is just 0.12, so the company uses capital conservatively and earns strong returns on invested capital. Yet the implied ROE from the P/E and P/B is only around 8%, meaning the high ROCE is not flowing through strongly to shareholders. Sales growth of 4.62% is pedestrian, and profit actually fell 1.83%. A PEG of 3.17 is not cheap for a business with single-digit growth. The latest quarter did produce ₹13 Cr net profit on ₹156 Cr sales, roughly an 8.3% margin, but I don't extrapolate from one quarter. The Piotroski F-Score of 4/9 warns of financial strain, and FairStock's 24/100 risky score echoes that. With no dividend, the only way an investor gets paid is if the business grows; at this pace, I would need far better reinvestment economics. Promoter holding of 74.79% is a positive—skin in the game—but it also limits public float. The stock is down from a 52-week high of ₹573.70, so the market has already lost enthusiasm. A low-debt, high-ROCE business with stagnant profits can become attractive if management proves it can deploy capital wisely. Until then, this is a slow grower, not a compounder, and I would keep my capital protected and wait for a lower price or clear evidence of growth.

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