Maithan Alloys Limited

Basic Materials — Steel · NSE

₹880.10−₹3.05 (−0.35%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Maithan Alloys Limited manufactures and exports ferro alloys. The company provides ferro manganese, silico manganese, and ferro silicon products. It is also involved in the generation and supply of wind power.

IndustrySteel

SectorBasic Materials

Employees492

Annual revenue₹2,135 Cr

How does it make money?

Turns over ₹2,135 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 492 employees supports ₹4.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.34 Cr

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 14.9% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -25% while net margin moved +16% 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-25%

Margin effect+16%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.1% a year
✗ Profit has declined at 4.6% a year
✗ Latest-year revenue growth of -14.7% is below the longer-term trend — momentum is fading
✗ Profit fell 26.7% in the latest year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

69/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

8.8x

3Y Median

6.3x

40 monthly readings · mean 6.6x · range 3.8x–10.3x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 39% above its 3y median of 6.3x. 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 51% below the peer median of 18.2x.

vs. its own history

Expensive

6.3x median over 40 months · +39%

vs. sector peers

Cheap

18.2x median of 4 peers · -51%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.8% to 10.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.4% to 14.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1945% over 3 years, from ₹11 Cr to ₹233 Cr.
🔴High leverageFinancial
Debt/Equity of 5.70x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from 23.5% to 17.6%.
🔴Inventory building faster than salesFinancial
Inventory up 311% against revenue up -25% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹35 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 23.5% to 17.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.70x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 39% 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.
Returns on shareholder capital are falling
ROE has dropped from 17.8% to 10.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹35 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 12%✓ 14.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 6.3x✗ 8.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹2,562 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.8x

Cheap

Cheap against the generic band

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹99.8

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.70x

High

High leverage

Revenue Growth (YoY)

-14.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-26.7%

Falling

Profits are shrinking

Dividend Yield

1.93%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹35 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

15.8%

Good

Healthy core-business profitability

Net Margin

14.0%

Good

Strong bottom-line conversion

Current Ratio

6.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

930.0 / 976.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,840 Cr	₹1,698 Cr	₹1,775 Cr	₹2,135 Cr	-9.1%
EBITDA	₹668 Cr	₹197 Cr	₹251 Cr	₹376 Cr	-17.5%
EBITDA Margin	23.5%	11.6%	14.2%	17.6%	—
PAT (Net Profit)	₹499 Cr	₹349 Cr	₹630 Cr	₹434 Cr	-4.6%
EPS	₹171.43	₹119.87	₹216.47	₹148.96	-4.6%
ROE	17.8%	11.1%	16.8%	10.5%	—
ROCE	22.4%	14.0%	21.8%	14.9%	—
Total Debt	₹11 Cr	₹17 Cr	₹580 Cr	₹233 Cr	+173.4%
Free Cash Flow	₹957 Cr	-₹478 Cr	₹20 Cr	-₹35 Cr	—

🔴 Revenue has shrunk at 9.1% a year over 3 years.

🔴 EBITDA has shrunk at 17.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 23.5% to 17.6% over 3 years (-5.9 pts).

🔴 PAT (Net Profit) has shrunk at 4.6% a year over 3 years.

🔴 EPS has shrunk at 4.6% a year over 3 years.

🔴 ROE has fallen from 17.8% to 10.5% over 3 years (-7.3 pts).

🔴 ROCE has fallen from 22.4% to 14.9% over 3 years (-7.6 pts).

🔴 Total Debt has grown at 173.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹957 Cr to -₹35 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,894 Cr

Total Liabilities

₹735 Cr

Cash & Equivalents

₹59 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹25 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

75.0%

Corporate Actions

Dividend Rate

₹17

Ex-Dividend Date

21 Sept 2026

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

Maithan Alloys Acquires Equity Stake In Sterlite Technologies Through Stock Market

Sahi, 17 Oct

Poojaa Precision Engg. Ltd Share Price

Business Today, 16 Oct

Maithan Alloys (MAITHANALL) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Maithan Alloys trades below book value. Why the discount makes sense

Value Research, 29 Apr

Smallcap stock jumps 24% in a week as NSE stake could be valued at Rs 850 crore

The Economic Times, 18 Jun

Maithan Alloys Share Price Target 2026 Analyst Forecast Bull and Bear Case

Univest, 24 AprAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-14.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakGrowth · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Valuation vs its own median of 6.3x · see Key things to watch ↑