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Check Before You Invest : Manilam Industries India Ltd

BSE: 0 NSE: MANILAM ISIN: INE1ERK01013
  |   Sector:  Construction & Infrastructure   |   Industry:  Laminates/Decoratives

Snapshot

Q.1 Which industry/sub-sector does Manilam Industries India Ltd belong to?
Manilam Industries India Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Laminates/Decoratives segment.
Q.2 Is Manilam Industries India Ltd a good quality company?
Manilam Industries India 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 Manilam Industries India Ltd undervalued or overvalued?
Manilam Industries India Ltd appears Somewhat 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 3-year
Historic Median
Price to Earnings 18.39 16.79
Price to Book 2.54 2.31
Price to Sales 0.97 0.89
EV to EBITDA 10.01 9.42
Q.4 Is Manilam Industries India Ltd a good buy now?
Manilam Industries India 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.

Q.1 Gross Profit margin of Manilam Industries India Ltd?
Manilam Industries India Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.4% for FY-2025, which is above its 3-year median of 5.1%, indicating increasing margins.

Q.2 Operating Profit Margin of Manilam Industries India Ltd?
Manilam Industries India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.59% for FY-2025, which is above its 3-year median of 10.21% indicating increasing margins.

Q.3 Net Profit Margin of Manilam Industries India Ltd?
Manilam Industries India Ltd Net Profit Margin is 5.27% for FY-2025, is above its 3-year median of 2.25%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 9.4 5.1
Operating Profit Margin (%) 12.59 10.21
Net Profit Margin (%) 5.27 2.25

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Manilam Industries India Ltd?
Manilam Industries India Ltd Return on Asset is 4.78%, which is above its 3-year historical median of 2.19%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Manilam Industries India Ltd?
Manilam Industries India Ltd Return on capital employed is 17.45% for FY-2025, which is above its 3-year historical median of 12.56%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Manilam Industries India Ltd?
Manilam Industries India Ltd Return on equity is 24.46% for FY-2025, which is above its 3-year historical median of 12.46%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Manilam Industries India Ltd?
Manilam Industries India Ltd Debt-to-Equity ratio is 1.84, which is above the industry average of 0.76, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Manilam Industries India Ltd?
Manilam Industries India Ltd Debt to cash flow from operations is 3.79, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Manilam Industries India Ltd?

Q.1 Promoter shareholding and pledge status of Manilam Industries India Ltd?
Promoters hold 61.93% of the Manilam Industries India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Manilam Industries India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Manilam Industries India Ltd vs industry peers?
Manilam Industries India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 1.98%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 2
Gross Profit Growth (%) 85.7 6
Operating Profit Growth (%) 28.6 9.7
Net Profit Growth (%) 133.3 -1.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.91 0.98
ROE (%) 24.46 10.28
ROCE (%) 17.45 11.91
Cash Conversion Cycle (days) 193.61 143

Valuation & price assessment

Q.1 Stock return of Manilam Industries India Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Manilam Industries India Ltd vs historical?
The current P/E ratio of 18.39 is higher than its historical median of 16.79, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 18.39 16.79 25.86
Price to Book 2.54 2.31 2.29
Price to Sales 0.97 0.89 0.95
EV to EBITDA 10.01 9.42 13.25

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