Mukand (MUKANDLTD)
CyclicalFairStock Score: 26/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹134.14 |
| Market Cap | ₹1,938.26 Cr |
| P/E Ratio | 3.21 |
| ROCE | 9.91% |
| ROE | 48.88% |
| Dividend Yield | 1.42% |
| Profit Growth | 81.34% |
| Debt/Equity | 1.11 |
| Sales Growth | 25.59% |
| Promoter Holding | 74.7% |
| 52-Week Range | ₹114.31 — ₹154.25 |
| Sector | Ferrous Metals |
| Book Value | ₹105.36 |
Strengths
- Promoter holding of 74.70% ensures strong owner alignment
- Sales growth of 5.48% shows some business resilience
- Book value of ₹66.60 provides a tangible asset base
- Dividend yield of 1.52% offers modest shareholder return
- Latest quarter sales of ₹1,331 Cr indicate scale of operations
Concerns
- P/E of 31.60 with profit growth of -31.28% makes the valuation expensive
- Debt/Equity of 1.89 signals a leveraged balance sheet
- Latest quarterly net profit of ₹10 Cr on ₹1,331 Cr sales shows razor-thin margins
- Piotroski F-score of 4/9 and FairStock Score of 12/100 highlight financial risk
AI Analysis
At ₹143.16, Mukand is being valued as if steel has a bright, stable future. I cannot accept that. The price-to-earnings ratio of 31.60 looks absurd for a company whose profit fell 31.28% and whose latest quarter delivered only ₹10 crore net profit on ₹1,331 crore sales. That is a sub-1% margin. Benjamin Graham taught me to demand a margin of safety, and this stock offers none at 2.15 times book value. Book value is ₹66.60; I am being asked to pay more than double for a business earning only 8.76% on equity and 9.91% on capital. Neither clears my hurdle, especially with debt at 1.89 times equity. This is a cyclical business, not a compounder. Sales grew 5.48%, but in steel, top-line growth without pricing power and margin protection is meaningless. The Piotroski F-score of 4/9 confirms financial weakness; the PEG ratio of 5.77 is a warning, not a value signal. The dividend yield of 1.52% is thin compensation for the risk. Promoter holding of 74.70% is good alignment, but it does not make poor economics good. I would rather wait. In cyclical industries, the time to buy is when balance sheets are strong, earnings are depressed, and the market is fearful. Here earnings are falling and the market still expects growth. That is the worst combination. Mukand may be a decent company someday, but at this price and with this leverage, I would keep it on my watchlist, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer