Check Before You Invest : Mahavir Industries Ltd

Q: Which industry/sub-sector does Mahavir Industries Ltd belong to?

Mahavir Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.

Q: Is Mahavir Industries Ltd a good quality company?

Mahavir Industries Ltd is a quality company, based on a 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 Mahavir Industries Ltd undervalued or overvalued?

Mahavir Industries 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: -, Historic Median: -. Price to Book, Current: 185.71, Historic Median: 185.71. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: -25.59, Historic Median: -25.59

Q: Is Mahavir Industries Ltd a good buy now?

Mahavir Industries 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 Mahavir Industries Ltd?

Mahavir Industries Ltd revenue growth is 25% for FY-2020, which is above its 5-year CAGR of 2.13%, indicating faster growth.

Q: Gross Profit margin of Mahavir Industries Ltd?

Mahavir Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.9% for FY-2020, which is above its 5-year median of 0.1%, indicating increasing margins.

Q: Operating Profit Margin of Mahavir Industries Ltd?

Mahavir Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -23.69% for FY-2020, which is in line with its 5-year median of -23.69% indicating stable margins.

Q: Net Profit Margin of Mahavir Industries Ltd?

Mahavir Industries Ltd Net Profit Margin is -3.7% for FY-2020, is below its 5-year median of -1.02%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.9, Historic Median: 0.1. Operating Profit Margin (%), Current: -23.69, Historic Median: -23.69. Net Profit Margin (%), Current: -3.7, Historic Median: -1.02

Q: Return on Asset of Mahavir Industries Ltd?

Mahavir Industries Ltd Return on Asset is -0.37%, which is above its 5-year historical median of -2.3%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Mahavir Industries Ltd?

Mahavir Industries Ltd Return on capital employed is 1.2% for FY-2020, which is above its 5-year historical median of -1.96%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Mahavir Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Mahavir Industries Ltd belong to?

Mahavir Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.

Q.2 Is Mahavir Industries Ltd a good quality company?

Mahavir Industries Ltd is a quality company, based on a 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 Mahavir Industries Ltd undervalued or overvalued?

Mahavir Industries 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	-	-
Price to Book	185.71	185.71
Price to Sales	-	-
EV to EBITDA	-25.59	-25.59

Q.4 Is Mahavir Industries Ltd a good buy now?

Mahavir Industries 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 Mahavir Industries Ltd?

Mahavir Industries Ltd revenue growth is 25% for FY-2020, which is above its 5-year CAGR of 2.13%, indicating faster growth.

Q.2 Gross Profit margin of Mahavir Industries Ltd?

Mahavir Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.9% for FY-2020, which is above its 5-year median of 0.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Mahavir Industries Ltd?

Mahavir Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -23.69% for FY-2020, which is in line with its 5-year median of -23.69% indicating stable margins.

Q.4 Net Profit Margin of Mahavir Industries Ltd?

Mahavir Industries Ltd Net Profit Margin is -3.7% for FY-2020, is below its 5-year median of -1.02%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	10.9	0.1
Operating Profit Margin (%)	-23.69	-23.69
Net Profit Margin (%)	-3.7	-1.02

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mahavir Industries Ltd?

Mahavir Industries Ltd Return on Asset is -0.37%, which is above its 5-year historical median of -2.3%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mahavir Industries Ltd?

Mahavir Industries Ltd Return on capital employed is 1.2% for FY-2020, which is above its 5-year historical median of -1.96%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Mahavir Industries Ltd?

Mahavir Industries Ltd Return on equity is -80.44% for FY-2020, which is in line with its 5-year historical median of -80.44%, indicating the business is making similar use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Mahavir Industries Ltd?

Mahavir Industries Ltd Debt-to-Equity ratio is 345.58, which is above the industry average of 0.09, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Mahavir Industries Ltd?

Mahavir Industries Ltd Debt to cash flow from operations is -18.77, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mahavir Industries Ltd?

Q.1 Promoter shareholding and pledge status of Mahavir Industries Ltd?

Promoters hold 1.55% of the Mahavir Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mahavir Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mahavir Industries Ltd vs industry peers?

Mahavir Industries Ltd revenue CAGR is 2.13%, compared to the industry median CAGR of 7.29%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	25	7.3
Gross Profit Growth (%)	0	24
Operating Profit Growth (%)	0	21
Net Profit Growth (%)	0	19.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.1	1.1
ROE (%)	-80.44	11.33
ROCE (%)	1.2	14.01
Cash Conversion Cycle (days)	355.88	90

Valuation & price assessment

Q.1 Stock return of Mahavir Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -18.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-18.5%	5.4%	-	-

Q.2 Valuation ratios of Mahavir Industries Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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	-	-	19.09
Price to Book	185.71	185.71	1.95
Price to Sales	-	-	1.73
EV to EBITDA	-25.59	-25.59	10.27

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Check Before You Invest : Mahavir Industries 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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