Mishra Dhatu Nig (MIDHANI)

FairStock Score: 28/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹385.85, MIDHANI asks me to pay ₹59 for every rupee of earnings, while earnings grew barely 8.67% last year. That is a poor trade-off; even with 15.84% sales growth, profit is not following, so margins are under pressure. In Graham's language, the margin of safety is absent. Book value is ₹69.14, yet the market prices it at 5.58 times book while ROE is only 8.10%. A business cannot justify that premium unless it earns excess returns; MIDHANI's ROCE of 10.60%, though modestly above debt cost, is nothing special. The low debt/equity of 0.23 and 74% promoter holding give stability, and the aerospace/defence speciality alloys business has genuine barriers to entry. But as a minority investor, I do not control the allocation, and the dividend yield of 0.22% tells me shareholders are not being paid to wait. Latest quarter sales of ₹276 Cr and net profit of ₹27 Cr imply only about 10% net margin, again not robust enough for a P/E near 60. Piotroski score 7/9 suggests operations are not deteriorating sharply, but I am not buying a 'fine company' at any price. The FairStock score of 15/100 echoes my caution: risky. I would need a far lower price, a track record of fatter margins, or substantially higher returns on equity before treating this as a sensible investment. It could be a story for speciality defence, but valuation and profitability today fail my simple tests.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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