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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 weak quality company, based on a inconsistent 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 Magna Electro Castings Ltd undervalued or overvalued?
Magna Electro Castings 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 0-year
Historic Median
Price to Earnings - -
Price to Book - 1.76
Price to Sales - 3.43
EV to EBITDA - -3.27
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

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.

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

Q.1 Debt to Equity ratio of Magna Electro Castings Ltd?
Magna Electro Castings Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Magna Electro Castings Ltd?
Magna Electro Castings Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Magna Electro Castings Ltd?

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)

E: How does Magna Electro Castings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Magna Electro Castings Ltd vs industry peers?
Magna Electro Castings Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 14.9
Operating Profit Growth (%) - 15.3
Net Profit Growth (%) - 15.7
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.48
ROE (%) - 4.89
ROCE (%) - 7.53
Cash Conversion Cycle (days) - 37

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 26.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
26.1% 53.9% 45.5% 47.7%
Q.2 Valuation ratios of Magna Electro Castings 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 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - - -
Price to Book - 1.76 -
Price to Sales - 3.43 -
EV to EBITDA - -3.27 -

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