Mangalam Alloys Limited

Sector n/a · NSE

₹41.25+₹0.55 (+1.35%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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, 8:27 pm

Understanding the Business

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

How does it make money?

Turns over ₹431 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 22.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 2 years revenue moved +43% while net margin moved -8% 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+43%

Margin effect-8%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.3% is weak
✗ ROE has fallen by 3.5 points over the period

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

88/ 100

Cheap

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

5.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 10.6% to 12.2% over 2 years.
High return on capital employed
ROCE of 22.4% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 12.8% to 9.3% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 10.6% to 12.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 12.8% to 9.3%. 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.
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

1Revenue growth stays above 15% a year✓ 19.7% CAGR
Latest reported year was 41.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹102 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

22.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.24x

Moderate

Moderate leverage

Revenue Growth (YoY)

41.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.4%

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

Gross Margin

18.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

39.5 / 36.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.5

Oversold zone

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹301 Cr	₹304 Cr	₹431 Cr	+19.7%
EBITDA	₹32 Cr	₹33 Cr	₹52 Cr	+28.6%
EBITDA Margin	10.6%	11.0%	12.2%	—
PAT (Net Profit)	₹10 Cr	₹11 Cr	₹13 Cr	+14.8%
EPS	₹4.13	₹4.65	—	—
ROE	12.8%	8.8%	9.3%	—
ROCE	20.5%	13.7%	22.4%	—
Total Debt	₹154 Cr	₹151 Cr	₹178 Cr	+7.7%
Free Cash Flow	₹5 Cr	-₹11 Cr	-₹3 Cr	—

🟢 Revenue has grown at 19.7% a year over 2 years.

🟢 EBITDA has grown at 28.6% a year over 2 years.

🟢 EBITDA Margin has risen from 10.6% to 12.2% over 2 years (+1.6 pts).

🟢 PAT (Net Profit) has grown at 14.8% a year over 2 years.

🔴 ROE has fallen from 12.8% to 9.3% over 2 years (-3.5 pts).

🟢 ROCE has risen from 20.5% to 22.4% over 2 years (+1.9 pts).

🔴 Total Debt has grown at 7.7% a year over 2 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹460 Cr

Total Liabilities

₹317 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹4 Cr

Recent News

1 mixed5 general

Mangalam Alloys Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Momentum Stocks: Enfuse Solutions, Mangalam Alloys, GOCL Corp gain up to 9% on sheer momentum

Moneycontrol.com, 03 Sept

Mangalam Alloys (NSEI:MAL) - Stock Analysis

Simply Wall Street, 05 Oct

Mangalam Alloys makes flat debut; shares list at ₹80 apiece on NSE SME

Livemint, 04 Oct

MAL Stock Price and Chart — NSE:MAL

TradingView, 27 Oct

Mangalam Alloys Ltd plans to raise money in SME IPO for business expansion

The Times of India, 20 SeptCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongGrowth

MiddlingBusiness Quality · Valuation

WeakFinancial Health · Profitability · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑