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Check Before You Invest : Sandur Manganese & Iron Ores Ltd

BSE: 504918 NSE: SANDUMA ISIN: INE149K01016
  |   Sector:  Metals & Mining   |   Industry:  Mining & Minerals

Snapshot

Q.1 Which industry/sub-sector does Sandur Manganese & Iron Ores Ltd belong to?
Sandur Manganese & Iron Ores Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.
Q.2 Is Sandur Manganese & Iron Ores Ltd a good quality company?
Sandur Manganese & Iron Ores 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 Sandur Manganese & Iron Ores Ltd undervalued or overvalued?
Sandur Manganese & Iron Ores 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 20.31 14.85
Price to Book 3.55 2.32
Price to Sales 5.48 2.43
EV to EBITDA 12.22 8.63
Q.4 Is Sandur Manganese & Iron Ores Ltd a good buy now?
Sandur Manganese & Iron Ores Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd revenue growth is 54.8% for FY-2025, which is above its 5-year CAGR of 26.79%, indicating faster growth.

Q.2 Gross Profit margin of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Gross profit margin which is the profit after deduction of direct costs, is 33.9% for FY-2025, which is in line with its 5-year median of 33.9%, indicating stable margins.

Q.3 Operating Profit Margin of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.8% for FY-2025, which is in line with its 5-year median of 33.8% indicating stable margins.

Q.4 Net Profit Margin of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Net Profit Margin is 22.93% for FY-2025, is above its 5-year median of 20.62%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 33.9 33.9
Operating Profit Margin (%) 33.8 33.8
Net Profit Margin (%) 22.93 20.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Return on Asset is 10.83%, which is above its 5-year historical median of 7.99%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Return on capital employed is 22.72% for FY-2025, which is in line with its 5-year historical median of 22.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Return on equity is 18.75% for FY-2025, which is above its 5-year historical median of 16.8%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Cash conversion cycle is 14 days, above its 5-year historical median of -15 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 (x) 0.47 0.47
ROE (%) 18.75 16.8
ROCE (%) 22.72 22.35
Cash Conversion Cycle 14 days -15 days

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

Q.9 Debt to Equity ratio of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Debt-to-Equity ratio is 0.39, which is above the industry average of 0.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sandur Manganese & Iron Ores Ltd?
Sandur Manganese & Iron Ores Ltd Debt to cash flow from operations is 1.55, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Sandur Manganese & Iron Ores Ltd?

Q.1 Promoter shareholding and pledge status of Sandur Manganese & Iron Ores Ltd?
Promoters hold 74.22% of the Sandur Manganese & Iron Ores Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sandur Manganese & Iron Ores Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sandur Manganese & Iron Ores Ltd vs industry peers?
Sandur Manganese & Iron Ores Ltd revenue CAGR is 26.79%, compared to the industry median CAGR of 1.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 54.8 1.5
Gross Profit Growth (%) 72 14.6
Operating Profit Growth (%) 104.7 15.6
Net Profit Growth (%) 87 13.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.47 0.44
ROE (%) 18.75 9.11
ROCE (%) 22.72 9.61
Cash Conversion Cycle (days) 14.07 99

Valuation & price assessment

Q.1 Stock return of Sandur Manganese & Iron Ores Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 35.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
35.2% 52.4% 50.3% 31%
Q.2 Valuation ratios of Sandur Manganese & Iron Ores Ltd vs historical?
The current P/E ratio of 20.31 is higher than its historical median of 14.85, 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 20.31 14.85 16.81
Price to Book 3.55 2.32 2.04
Price to Sales 5.48 2.43 6.16
EV to EBITDA 12.22 8.63 7.12

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