Check Before You Invest : Maithan Alloys Ltd

Snapshot

Q.1 Which industry/sub-sector does Maithan Alloys Ltd belong to?

Maithan Alloys Ltd belongs to the Metals & Mining sector, operating specifically within the Ferro & Silica Manganese segment.

Q.2 Is Maithan Alloys Ltd a good quality company?

Maithan Alloys Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Maithan Alloys Ltd undervalued or overvalued?

Maithan Alloys Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Maithan Alloys Ltd a good buy now?

Maithan Alloys Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Maithan Alloys Ltd?

Maithan Alloys Ltd revenue growth is 5.6% for FY-2025, which is above its 5-year CAGR of -0.12%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Maithan Alloys Ltd?

Maithan Alloys Ltd Return on capital employed is 24.05% for FY-2025, which is above its 5-year historical median of 22.43%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Maithan Alloys Ltd?

Maithan Alloys Ltd Return on Asset is 15.86%, which is above its 5-year historical median of 14.84%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Maithan Alloys Ltd?

Maithan Alloys Ltd Return on equity is 18.96% for FY-2025, which is above its 5-year historical median of 16.88%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Maithan Alloys Ltd?

Maithan Alloys Ltd Cash conversion cycle is 125 days, above its 5-year historical median of 116 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.45	0.95
ROE	18.96	16.88
ROCE	24.05	22.43
Cash Conversion Cycle	125 days	116 days

Q.6 Gross Profit margin of Maithan Alloys Ltd?

Maithan Alloys Ltd Gross profit margin which is the profit after deduction of direct costs, is 48% for FY-2025, which is above its 5-year median of 26.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Maithan Alloys Ltd?

Maithan Alloys Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.33% for FY-2025, which is below its 5-year median of 17.32% indicating decreasing margins.

Q.8 Net Profit Margin of Maithan Alloys Ltd?

Maithan Alloys Ltd Net Profit Margin is 35.18% for FY-2025, is above with its 5-year median of 20.37%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	48	26.9
Operating Profit Margin	9.33	17.32
Net Profit Margin	35.18	20.37

Q.9 Debt to Equity ratio of Maithan Alloys Ltd?

Maithan Alloys Ltd Debt-to-Equity ratio is 0.15, which is above with the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Maithan Alloys Ltd?

Maithan Alloys Ltd Debt to cash flow from operations is 1.06, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Maithan Alloys Ltd?

Promoters hold 74.96% of the Maithan Alloys Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Maithan Alloys Ltd vs industry peers?

Maithan Alloys Ltd revenue CAGR is -0.12%, compared to the industry median CAGR of 2.66%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.6	2.7
Gross Profit Growth	88.2	21.8
Operating Profit Growth	-113.6	13.5
Net Profit Growth	82.3	25

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.45	0.9
ROE	18.96	5.9
ROCE	24.05	4.82
Cash Conversion Cycle (days)	124.97	59

Valuation & price assessment

Q.1 Stock return of Maithan Alloys Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.7%	3%	3.3%	1.8%

Q.3 Valuation ratios of Maithan Alloys Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	6.41	6.01	16.73
Price to Book	0.69	1.08	1.41
Price to Sales	1.37	1.43	1.02
EV to EBITDA	4.79	4.38	5.56

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