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Check Before You Invest : Mahavir Industries Ltd

BSE: 531648 NSE: ISIN: INE987M01023
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electrodes & Welding Equipment

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 10 year financial track record.
Q.3 Is Mahavir Industries Ltd undervalued or overvalued?
Mahavir Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
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

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 2.1% , 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% , 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 below its 5 year median of 0% indicating decreasing margins.
Q.4 Net Profit Margin of Mahavir Industries Ltd?
Mahavir Industries Ltd Net Profit Margin is -3.7% for FY-2020 , is below with its 5 year median of -%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10.9 -
Operating Profit Margin -23.69 -
Net Profit Margin -3.7 -
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 Equity (ROE) of Mahavir Industries Ltd?
Mahavir Industries Ltd Return on equity is -80.44% for FY-2020 , which is in line with its historical median of -80.44%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Mahavir Industries Ltd?
Mahavir Industries Ltd Return on capital employed is 1.2% for FY-2020 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Mahavir Industries Ltd?
Mahavir Industries Ltd Cash conversion cycle is 356 days, above its historical median of 0 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.1 -
ROE -80.44 -80.44
ROCE 1.2 -1.96
Cash Conversion Cycle 356 days -
Q.9 Debt to Equity ratio of Mahavir Industries Ltd?
Mahavir Industries Ltd Debt-to-Equity ratio is 345.58 , which is above with the industry average of 0.11 , indicating higher debt levels in the industry.
Q.10 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

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)

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 Industry Median
Revenue 0.1 236.2
Gross Profit 0 24.7
Operating Profit -0 23.5
Net Profit - 17
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.1 1.3
ROE -80.44 11.68
ROCE 1.2 14.6
Cash Conversion Cycle (days) 355.88 92

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 -19.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -19.3% 5.4% - -
Q.3 Valuation ratios of Mahavir Industries Ltd vs historical?
The current P/E is lower 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 - 174.59 32.47
Price to Book 185.71 129.72 1.95
Price to Sales - 0.00 1.73
EV to EBITDA -25.59 139.69 10.27

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