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Check Before You Invest : MPK Steels (I) Ltd

BSE: 544553 NSE: ISIN: INE1PJP01015
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does MPK Steels (I) Ltd belong to?
MPK Steels (I) Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is MPK Steels (I) Ltd a good quality company?
MPK Steels (I) Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is MPK Steels (I) Ltd undervalued or overvalued?
MPK Steels (I) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is MPK Steels (I) Ltd a good buy now?
MPK Steels (I) 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 MPK Steels (I) Ltd?
MPK Steels (I) Ltd revenue growth is 10.7% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.1% for FY-2025 , which is above its 5 year median of 3.3% , indicating increasing margins.
Q.3 Operating Profit Margin of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.33% for FY-2025 , which is above its 5 year median of 2.93% indicating increasing margins.
Q.4 Net Profit Margin of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Net Profit Margin is 2.93% for FY-2025 , is below with its 5 year median of 4.16%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 4.1 3.3
Operating Profit Margin 4.33 2.93
Net Profit Margin 2.93 4.16
Q.5 Return on Asset of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Return on Asset is 10.33%, which is above its 5 year historical median of 9.78%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Return on equity is 28.55% for FY-2025 , which is below its historical median of 29.9%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Return on capital employed is 26.62% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Cash conversion cycle is 42 days, above its historical median of 34 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.52 3.66
ROE 28.55 29.9
ROCE 26.62 19.24
Cash Conversion Cycle 42 days 34 days
Q.9 Debt to Equity ratio of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Debt-to-Equity ratio is 0.76 , which is above with the industry average of 0.32 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of MPK Steels (I) Ltd?
MPK Steels (I) Ltd Debt to cash flow from operations is -1.32 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MPK Steels (I) Ltd?
Promoters hold 66.52% of the MPK Steels (I) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MPK Steels (I) Ltd vs industry peers?
MPK Steels (I) Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 7.41% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 206.6 364.5
Gross Profit 8.5 11.6
Operating Profit 9 15
Net Profit 6 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.52 1.27
ROE 28.55 8.12
ROCE 26.62 11.38
Cash Conversion Cycle (days) 42.05 72

Valuation & price assessment

Q.1 Stock return of MPK Steels (I) Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of MPK Steels (I) 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 20.3 0.00 23.93
Price to Book 2.46 0.00 1.46
Price to Sales 0.59 0.00 0.74
EV to EBITDA 13.47 0.00 9.89

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