Mahamaya Steel Industries Limited

Basic Materials — Steel · NSE

₹1,231.30+₹58.60 (+5.00%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mahamaya Steel Industries Limited engages in the manufacture and sale of steel structures products in India.

IndustrySteel

SectorBasic Materials

Employees908

Annual revenue₹881 Cr

How does it make money?

Turns over ₹881 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 908 employees supports ₹97.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹97.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +36% while net margin moved +29% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+36%

Margin effect+29%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 202.2x is demanding — it needs sustained high growth to justify
✗ P/E is 212% above its own historical median of 64.8x — expensive by its own standards
✗ P/B of 12.73x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

23/ 100

Expensive

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

202.2x

3Y Median

64.8x

40 monthly readings · mean 98.2x · range 20.7x–235.1x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 212% above its 3y median of 64.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 1012% above the peer median of 18.2x.

vs. its own history

Expensive

64.8x median over 40 months · +212%

vs. sector peers

Expensive

18.2x median of 4 peers · +1012%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

80.6x

PEG

9.71

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 6.2% to 10.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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 34% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 212% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.

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

1Revenue growth stays above 8% a year✓ 10.9% CAGR
Latest reported year was 29.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹2,024 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

202.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.73x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹6.09

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

29.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.6%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.36

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1154.4 / 1182.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹646 Cr	₹782 Cr	₹801 Cr	₹881 Cr	+10.9%
EBITDA	₹20 Cr	₹19 Cr	₹21 Cr	₹26 Cr	+8.8%
EBITDA Margin	3.1%	2.5%	2.6%	2.9%	—
PAT (Net Profit)	₹5 Cr	₹7 Cr	₹8 Cr	₹10 Cr	+20.8%
EPS	₹3.31	₹4.09	₹4.62	₹5.84	+20.8%
ROE	4.1%	4.8%	5.1%	6.0%	—
ROCE	6.2%	8.1%	8.3%	10.2%	—
Total Debt	₹43 Cr	₹41 Cr	₹46 Cr	₹58 Cr	+10.3%
Free Cash Flow	-₹9 Cr	₹5 Cr	-₹0 Cr	-₹3 Cr	—

🟢 Revenue has grown at 10.9% a year over 3 years.

🟢 EBITDA has grown at 8.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.9% over 3 years.

🟢 PAT (Net Profit) has grown at 20.8% a year over 3 years.

🟢 EPS has grown at 20.8% a year over 3 years.

🟢 ROE has risen from 4.1% to 6.0% over 3 years (+2.0 pts).

🟢 ROCE has risen from 6.2% to 10.2% over 3 years (+4.1 pts).

🔴 Total Debt has grown at 10.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹270 Cr

Total Liabilities

₹112 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.1%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

Mahamaya Steel Industries Upper Circuit Streak: Day 2 Price and Data

Univest, 15 Oct

Vijay Rathee group raises stake in Mahamaya Steel to 11.445%

scanx.trade, 15 Oct

Revenues Not Telling The Story For Mahamaya Steel Industries Limited (NSE:MAHASTEEL) After Shares Rise 25%

Simply Wall Street, 30 DecPrice 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.

Mahamaya Steel Industries Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Mahamaya Steel Reports 17,485 MT Sales in June 2026 Amid Strengthening Steel Demand

Sahi, 01 Jul

Mahamaya Steel Industries Share Price Forecast to 2030

Univest, 21 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Risk

WeakProfitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑