Check Before You Invest : Magna Electro Castings Ltd

Q: Which industry/sub-sector does Magna Electro Castings Ltd belong to?

Magna Electro Castings Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.

Q: Is Magna Electro Castings Ltd a good quality company?

Magna Electro Castings Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Magna Electro Castings Ltd undervalued or overvalued?

Magna Electro Castings Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 23.67, Historic Median: 14.27. Price to Book, Current: 3.43, Historic Median: 1.88. Price to Sales, Current: 2.51, Historic Median: 1.32. EV to EBITDA, Current: 13.56, Historic Median: 6.91

Q: Is Magna Electro Castings Ltd a good buy now?

Magna Electro Castings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Magna Electro Castings Ltd?

Magna Electro Castings Ltd revenue growth is 22.8% for FY-2025, which is above its 5-year CAGR of 12.87%, indicating faster growth.

Q: Gross Profit margin of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.2% for FY-2025, which is above its 5-year median of 17.2%, indicating increasing margins.

Q: Operating Profit Margin of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.39% for FY-2025, which is above its 5-year median of 15.59% indicating increasing margins.

Q: Net Profit Margin of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Net Profit Margin is 13.1% for FY-2025, is above its 5-year median of 10.4%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.2, Historic Median: 17.2. Operating Profit Margin (%), Current: 19.39, Historic Median: 15.59. Net Profit Margin (%), Current: 13.1, Historic Median: 10.4

Q: Return on Asset of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Return on Asset is 14.25%, which is above its 5-year historical median of 11.63%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Return on capital employed is 25.18% for FY-2025, which is above its 5-year historical median of 20.33%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Magna Electro Castings Ltd

BSE: 517449 NSE: ISIN: INE437D01010

| Sector: Automobiles | Industry: Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Magna Electro Castings Ltd belong to?

Magna Electro Castings Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.

Q.2 Is Magna Electro Castings Ltd a good quality company?

Magna Electro Castings Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Magna Electro Castings Ltd undervalued or overvalued?

Magna Electro Castings Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	23.67	14.27
Price to Book	3.43	1.88
Price to Sales	2.51	1.32
EV to EBITDA	13.56	6.91

Q.4 Is Magna Electro Castings Ltd a good buy now?

Magna Electro Castings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Magna Electro Castings Ltd?

Magna Electro Castings Ltd revenue growth is 22.8% for FY-2025, which is above its 5-year CAGR of 12.87%, indicating faster growth.

Q.2 Gross Profit margin of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.2% for FY-2025, which is above its 5-year median of 17.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.39% for FY-2025, which is above its 5-year median of 15.59% indicating increasing margins.

Q.4 Net Profit Margin of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Net Profit Margin is 13.1% for FY-2025, is above its 5-year median of 10.4%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.2	17.2
Operating Profit Margin (%)	19.39	15.59
Net Profit Margin (%)	13.1	10.4

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Return on Asset is 14.25%, which is above its 5-year historical median of 11.63%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Return on capital employed is 25.18% for FY-2025, which is above its 5-year historical median of 20.33%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Return on equity is 19.45% for FY-2025, which is above its 5-year historical median of 14.91%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Cash conversion cycle is 69 days, below its 5-year historical median of 84 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.09	1.11
ROE (%)	19.45	14.91
ROCE (%)	25.18	20.33
Cash Conversion Cycle	69 days	84 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Debt-to-Equity ratio is 0.09, which is lower the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Magna Electro Castings Ltd?

Magna Electro Castings Ltd Debt to cash flow from operations is 0.28, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Magna Electro Castings Ltd?

Q.1 Promoter shareholding and pledge status of Magna Electro Castings Ltd?

Promoters hold 53.66% of the Magna Electro Castings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Magna Electro Castings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Magna Electro Castings Ltd vs industry peers?

Magna Electro Castings Ltd revenue CAGR is 12.87%, compared to the industry median CAGR of 7.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	22.8	7.2
Gross Profit Growth (%)	44	22.1
Operating Profit Growth (%)	47.8	17.9
Net Profit Growth (%)	53.3	32

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.09	1.2
ROE (%)	19.45	9.78
ROCE (%)	25.18	11.21
Cash Conversion Cycle (days)	68.84	73

Valuation & price assessment

Q.1 Stock return of Magna Electro Castings Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 25.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	25.2%	48.2%	51.9%	27.8%

Q.2 Valuation ratios of Magna Electro Castings Ltd vs historical?

The current P/E ratio of 23.67 is higher than its historical median of 14.27, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23.67	14.27	21.74
Price to Book	3.43	1.88	2.46
Price to Sales	2.51	1.32	1.52
EV to EBITDA	13.56	6.91	11.88

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Check Before You Invest : Magna Electro Castings Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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