Mishra Dhatu Nig (MIDHANI)
Slow GrowerFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹416.7 |
| Market Cap | ₹7,806.46 Cr |
| P/E Ratio | 57.79 |
| ROCE | 10.6% |
| ROE | 8.92% |
| Dividend Yield | 0.37% |
| Profit Growth | 27.43% |
| Debt/Equity | 0.27 |
| Sales Growth | 40.46% |
| Promoter Holding | 74% |
| 52-Week Range | ₹266.65 — ₹481.9 |
| Sector | Aerospace & Defense |
| Book Value | ₹81.81 |
Strengths
- Low debt/equity of 0.23 provides financial stability
- Strong promoter holding of 74% indicates government backing and strategic importance
- Piotroski F-Score of 7/9 suggests sound recent fundamental health
- Sales growth of 15.84% reflects good demand in aerospace and defence
- ROCE of 10.60% is above its modest leverage cost
Concerns
- P/E of 59.42 and PEG of 4.85 are extremely expensive relative to 8.67% profit growth
- ROE of 8.10% is weak against a P/B of 5.58 and book value of ₹69.14
- Profit growth lags sales growth, indicating margin compression; latest quarter net margin is around 10%
- Dividend yield of 0.22% offers negligible compensation to shareholders
- FairStock Score of 15/100 flags the stock as risky
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer