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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 10 year financial track record.
Q.3 Is Magna Electro Castings Ltd undervalued or overvalued?
Magna Electro Castings Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
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

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 12.9% , 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 with its 5 year median of 10.4%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 20.2 17.2
Operating Profit Margin 19.39 15.59
Net Profit Margin 13.1 10.4
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 Equity (ROE) of Magna Electro Castings Ltd?
Magna Electro Castings Ltd Return on equity is 19.45% for FY-2025 , which is above its historical median of 14.91%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Magna Electro Castings Ltd?
Magna Electro Castings Ltd Cash conversion cycle is 69 days, below its historical median of 84 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.09 1.11
ROE 19.45 14.91
ROCE 25.18 20.33
Cash Conversion Cycle 69 days 84 days
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 with the industry average of 0.34 , 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

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)

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 7.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 176.5 138.5
Gross Profit 35.6 12.1
Operating Profit 34 13.6
Net Profit 23 5.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.09 1.22
ROE 19.45 9.98
ROCE 25.18 12.36
Cash Conversion Cycle (days) 68.84 78

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 24.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 24.9% 49.2% 54.7% 21.3%
Q.3 Valuation ratios of Magna Electro Castings Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 22.03 9.51 38.01
Price to Book 3.19 0.00 2.45
Price to Sales 2.34 0.68 1.59
EV to EBITDA 12.61 3.71 12.17

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