Check Before You Invest : Mangalam Cement Ltd

Snapshot

Q.1 Which industry/sub-sector does Mangalam Cement Ltd belong to?

Mangalam Cement Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Mangalam Cement Ltd a good quality company?

Mangalam Cement Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Mangalam Cement Ltd undervalued or overvalued?

Mangalam Cement Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Mangalam Cement Ltd a good buy now?

Mangalam Cement 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

Q.1 Revenue growth of Mangalam Cement Ltd?

Mangalam Cement Ltd revenue growth is -2.6% for FY-2025, which is below its 5-year CAGR of 6.48%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Mangalam Cement Ltd?

Mangalam Cement Ltd Return on capital employed is 9.69% for FY-2025, which is below its 5-year historical median of 12%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Mangalam Cement Ltd?

Mangalam Cement Ltd Return on Asset is 2.13%, which is below its 5-year historical median of 2.94%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Mangalam Cement Ltd?

Mangalam Cement Ltd Return on equity is 5.42% for FY-2025, which is below its 5-year historical median of 7.62%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Mangalam Cement Ltd?

Mangalam Cement Ltd Cash conversion cycle is 7 days, above its 5-year historical median of 4 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	0.86	0.87
ROE	5.42	7.62
ROCE	9.69	12
Cash Conversion Cycle	7 days	4 days

Q.6 Gross Profit margin of Mangalam Cement Ltd?

Mangalam Cement Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.1% for FY-2025, which is below its 5-year median of 9.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Mangalam Cement Ltd?

Mangalam Cement Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.67% for FY-2025, which is below its 5-year median of 11.74% indicating decreasing margins.

Q.8 Net Profit Margin of Mangalam Cement Ltd?

Mangalam Cement Ltd Net Profit Margin is 2.68% for FY-2025, is below with its 5-year median of 3.46%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.1	9.4
Operating Profit Margin	9.67	11.74
Net Profit Margin	2.68	3.46

Q.9 Debt to Equity ratio of Mangalam Cement Ltd?

Mangalam Cement Ltd Debt-to-Equity ratio is 0.72, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Mangalam Cement Ltd?

Mangalam Cement Ltd Debt to cash flow from operations is 3.28, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mangalam Cement Ltd?

Promoters hold 40.00% of the Mangalam Cement Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mangalam Cement Ltd vs industry peers?

Mangalam Cement Ltd revenue CAGR is 6.48%, compared to the industry median CAGR of 6.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2.6	6.2
Gross Profit Growth	-13.9	NAN
Operating Profit Growth	-22.3	-3.8
Net Profit Growth	-25	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.86	0.82
ROE	5.42	7.62
ROCE	9.69	9.4
Cash Conversion Cycle (days)	6.71	23

Valuation & price assessment

Q.1 Stock return of Mangalam Cement Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.1%	27.2%	46.3%	18.5%

Q.3 Valuation ratios of Mangalam Cement Ltd vs historical?

The current P/E is lower 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	31.35	33.24	22.85
Price to Book	2.77	1.71	1.92
Price to Sales	1.43	0.84	1.40
EV to EBITDA	12	9.16	11.62

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