Permanent Magnets Ltd Stock Analysis

BSE: 504132 | NSE: PERMAGNET | Electric Equipment | Small Cap

BSE Share Price May 17, 15:49
381.45 34.75 (10.02%)

DeciZen - Make an Informed Decision on Permanent Magnets

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

FAQs

1. Is Permanent Magnets Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Permanent Magnets Ltd is a average quality company.

2. Is Permanent Magnets Ltd undervalued or overvalued?

The key valuation ratios of Permanent Magnets Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Permanent Magnets Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Permanent Magnets Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Permanent Magnets:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Permanent Magnets Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 4.8%3%10.6%4.1%8.4%6.2%20.5%41.4%30%29%-
Value Creation Index -0.7-0.8-0.3-0.7-0.4-0.60.52.01.11.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 46.848.554.558.767.571.992.8121107117128
YoY Gr. Rt. %-3.6%12.4%7.6%14.9%6.6%29%30.3%-11.8%9.5%-
Adj EPS -2.5-1.61.3-1.21.60.55.516.614.918.722.6
YoY Gr. Rt. %-NANA-193.1%NA-66.5%932.1%203.5%-10.5%25.6%-
BVPS (₹) 16.113.112.312.613.715.121.438.755.774.588.6
Adj Net Profit -2.1-1.41.1-1.11.40.54.714.312.816.119
Cash Flow from Ops. 1.92.64.54.15.19.41.39.911.56.9-
Debt/CF from Ops. 12.38.74.54.63.51.311.10.90.20.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.7%11.6%7.9%9.5%
Adj EPS NA63.9%50.6%25.6%
BVPS 18.640.351.633.7
Share Price 44.2% 67.4% 39.7% 32.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -14.3-10.910.3-9.8123.73055.331.528.727.7
Op. Profit Mgn % 8.46.510.34.16.24.59.11919.421.721.2
Net Profit Mgn % -4.6-2.82.1-1.820.65.111.81213.815.2
Debt to Equity 1.721.91.71.50.90.80.300-
Working Cap Days 3843412972712312091771641921810
Cash Conv. Cycle 1411601321229378535490830

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 50.56%

Sales growth is good in last 4 quarters at 37.79%

Return on Equity has declined versus last 3 years average to 27.70%

Sales growth has been subdued in last 3 years 7.94%

Latest Financials - Permanent Magnets Ltd.

Standalone Consolidated
TTM EPS (₹) 22.6 -
TTM Sales (₹ Cr.) 128 -
BVPS (₹.) 88.6 -
Reserves (₹ Cr.) 68 -
P/BV 3.91 -
PE 15.35 -
From the Market
52 Week Low / High (₹) 265.00 / 480.00
All Time Low / High (₹) 1.00 / 480.00
Market Cap (₹ Cr.) 298
Equity (₹ Cr.) 8.6
Face Value (₹) 10
Industry PE 56.7

Management X-Ray of Permanent Magnets :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.520.520.520.520.540.610.610.610.630.63
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Permanent Magnets Ltd

Permanent Magnets Ltd, is one of the flagship companies of Taparia Group, Mumbai and also one of the five leading manufacturers of Alnico Cast Magnets and Yoke Assemblies in the world. It is a front-runner among young, dynamic and growing companies in India. It was established in 1961 at Mumbai. It has Sales Offices at Delhi, Mumbai, and Bangalore. PML magnets are used extensively in key sectors of Indian industry such as electronics, electricity meters, automobile industries, telecommunication, defense, space research, aeronautics, railways and electricity generation.

Permanent Magnets is the largest producer of Alnico magnets in India. PML’s customer base is large and wide spread. It has 70% market share in India and a very respectable presence in Europe, USA, Australia, South America, South East Asia, Egypt and Malaysia. The customers are largely OEM's. PML sells to the trade also. PML started operations with the Alnico facility in 1963. This capability was augmented and upgraded with the technical support of Sumitomo Special Metals Co. of Japan. The current manufacturing capacity is 400 T per annum of cast alloy permanent magnets.

PML began manufacturing magnets in 1963 in collaboration with Centro Magneti Permanenti of Italy. Production began with a 400-tonne capacity plant for Cast Alnico magnets at PML’s Borivali Plant, in Mumbai. New grades of Alnicos were introduced with a technology tie-up in 1983 with Sumitomo Special Metal Co. (a leading Japanese manufacturer.

Success led to diversification and growth. Magnetic Systems were added to production lines and  special applications cell handles industrial problems of separation, conveying, lifting, etc. 

Product range of the company includes:

  • Mu Metal Components
  • Standard Magnetic Assemblies
  • Custom Magnetic Assemblies
  • Alnico Magnets
  • Ferrite Magnets
  • NdFeB Magnets
  • Assembly For Energy Meters
  • Cow Magnets

Achievements/ recognition:

  • An ISO:9001:2000 certified company.
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