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Permanent Magnets Ltd. Stock Analysis

Small Cap
Evaluated by 186 users | BSE: 504132 | NSE: PERMAGNET |
Electric Equipment
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...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.69%4.8%3.02%10.55%4.12%8.39%6.15%20.51%41.41%30.01%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 62.146.848.554.558.767.571.992.8121107
Y-o-Y Gr. Rt.--24.6%3.6%12.4%7.6%14.9%6.6%29%30.3%-11.8%
Adjusted EPS (Rs.) -0.26-2.49-1.591.31-1.221.580.535.4716.614.86
Y-o-Y Gr. Rt.-NANANA-193.1%NA-66.5%932.1%203.5%-10.5%
Book Value per Share (Rs.) 18.716.0713.0912.2712.6313.7215.121.3938.6755.68
Adjusted Net Profit -0.2-2.1-1.41.1-1.11.40.54.714.312.8
Net Op. Cash Flow (Rs. Cr.) 3.21.92.64.54.15.19.41.39.911.5
Debt to Cash Flow from Ops 7.8212.298.734.474.563.521.2811.120.850.18
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Permanent Magnets Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.2%12.7%14%-11.8%
Adjusted EPS NANA203.8%-10.5%
Book Value per Share 12.934.554.544
Share Price 31.3% 68.3% 40.2% 92.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -1.41-14.31-10.910.32-9.7712.013.6829.9755.2631.51
Operating Profit Margin (%) 5.338.426.510.274.076.184.539.1218.9719.39
Net Profit Margin (%) -0.36-4.57-2.822.06-1.782.020.635.0711.8111.99
Debt to Equity 1.571.72.031.891.711.520.930.770.250.04
Working Capital Days 297384341297271231209177164192
Cash Conversion Cycle 1121411601321229378535490
Entity Percentage Holding
Promoters 69.72%
Institutions 0.01%
Non-Institutions 30.27%
Pledged *0.510.510.510.510.510.520.520.520.520.52
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Permanent Magnets Ltd.'s performance infers:

Permanent Magnets Ltd. earnings have grown by 0%, whereas share price has appreciated 68.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Permanent Magnets Ltd. share prices over the last 10 years. Here is what we found out:

Permanent Magnets Ltd. share price has appreciated 21.9% annually over the past ten years.

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,

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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