Magnus Steel and Infra Limited

Technology — Information Technology Services · BSE

₹32.35+₹0.54 (+1.70%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Magnus Steel and Infra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Magnus Steel and Infra Limited engages in trading of iron and steel products in India and internationally. It also trades in engineering products. The company was formerly known as Magnus Retail Limited and changed its name to Magnus Steel and Infra Limited in May 2025.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation.

EBITDA margin20.6%

Net margin20.0%

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Some evidence

ROCE of 90.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE90.5%

ROE132.9%

Peer median ROE32.0%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.85 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

1.7x

1.3Y Median

209.6x

16 monthly readings · mean 262.1x · range 2.0x–848.4x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 99% below its 1.3y median of 209.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 90% below the peer median of 16.5x.

vs. its own history

Cheap

209.6x median over 16 months · -99%

vs. sector peers

Cheap

16.5x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

1.7x

P/B

3.23x

EV/EBITDA

2.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from -1057.1% to 90.5%.
High return on capital employed
ROCE of 90.5% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 1.7x the stock trades 99% below its own median of 209.6x.

🔴 What Needs Attention2

Debt is rising
Total debt is up 37% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 90.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 99% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 90% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 20.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 87%✓ 90.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 209.6x✓ 1.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.7x

Cheap

Cheap against the generic band

P/B Ratio

3.23x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.28

Profitable

Profitable on a per-share basis

ROE

132.9%

Strong

Strong capital efficiency

ROCE

90.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

273.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

489.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹32.35

Operating Margin

33.0%

Good

Healthy core-business profitability

Net Margin

23.3%

Good

Strong bottom-line conversion

Current Ratio

1.57

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

31.9 / 30.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹1 Cr	₹3 Cr	₹23 Cr	—
EBITDA	-₹0 Cr	-₹0 Cr	₹0 Cr	₹5 Cr	—
EBITDA Margin	—	-23.2%	5.9%	20.6%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	₹5 Cr	—
EPS	₹-0.86	₹-1.12	₹0.17	₹13.33	—
ROCE	-1057.1%	-361.4%	59.9%	90.5%	—
Total Debt	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+11.0%
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹5 Cr.

🟢 EBITDA Margin has risen from -23.2% to 20.6% over 3 years (+43.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹5 Cr.

🟢 EPS has turned positive, from ₹-0.86 to ₹13.33.

🟢 ROCE has risen from -1057.1% to 90.5% over 3 years (+1147.6 pts).

🔴 Total Debt has grown at 11.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹11 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

15.7%

Corporate Actions

Ex-Dividend Date

19 Aug 1996

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed4 general

Magnus Steel & Infra to set rights issue terms on Oct 21

scanx.trade, 15 Oct

1600% returns in one year! Multibagger stock to watch on Monday after this development

Livemint, 26 Jun

Magnus Steel and Infra shares hit 5% upper circuit, extend gains after Q1 results

Moneycontrol.com, 27 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

800% In 5 Years: Why This Small-Cap Stock Is Down Nearly 20% This Year Despite Strong Q1 Growth

NDTV Profit, 25 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Magnus Steel Wins Tata Motors Supply Orders

HDFC Sky, 11 May

Magnus Steel And Infra Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong13.3/20

🟡GrowthModest10/20

🟢ProfitabilityStrong14.1/15

🟢ValuationAttractive11.8/15

🔴RiskHigh3.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 19%20.6%
✗Free cash flow remains positive-₹0 Cr
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 87%90.5%
✓Valuation vs its own median of 209.6x1.7x today