Manaksia Aluminium Company Limited

Basic Materials — Aluminum · NSE

₹31.32+₹0.86 (+2.82%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Manaksia Aluminium Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Manaksia Aluminium Company Limited manufactures and sells aluminum products in India and internationally.

IndustryAluminum

SectorBasic Materials

Employees304

Annual revenue₹553 Cr

How does it make money?

Turns over ₹553 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 304 employees supports ₹1.82 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.1%

Net margin1.4%

Revenue / employee₹1.82 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

What is its competitive advantage?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.5%

ROE5.3%

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +16% while net margin moved -27% 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+16%

Margin effect-27%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.1% — barely ahead of inflation
✗ Profit has declined at 5.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

61/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

23.4x

3Y Median

31.4x

40 monthly readings · mean 30.0x · range 17.9x–46.8x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 31.4x. 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 92% above the peer median of 12.2x.

vs. its own history

Cheap

31.4x median over 40 months · -26%

vs. sector peers

Expensive

12.2x median of 4 peers · +92%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

23.4x

P/B

1.45x

EV/EBITDA

9.9x

PEG

—

Dividend Yield

0.16%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.2% to 8.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 13.2% to 15.5%.
Valuation below its historical average
At 23.4x the stock trades 26% below its own median of 31.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 65% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 88% against revenue growth of 16% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 53% against revenue growth of 16% — stock may not be moving.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 65% over 3 years, from ₹146 Cr to ₹242 Cr.
🔴High leverageFinancial
Debt/Equity of 1.69x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 88% against revenue up 16% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 53% against revenue up 16% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.2% to 8.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 26% 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.
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 debt load needs earnings to hold up
Debt is 5.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 88% against revenue up 16%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 92% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 5.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.1% CAGR
Latest reported year was 3.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹23 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹205 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.34

Profitable

Profitable on a per-share basis

ROE

5.3%

Weak

Weak capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.69x

High

High leverage

Revenue Growth (YoY)

3.9%

Modest

Modest growth

Profit Growth (YoY)

79.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

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

Free Cash Flow

₹23 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹31.32

Operating Margin

7.7%

Average

Average margins

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.93

Market-like

Moves roughly in line with the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

33.3 / 36.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹476 Cr	₹427 Cr	₹503 Cr	₹553 Cr	+5.1%
EBITDA	₹30 Cr	₹33 Cr	₹40 Cr	₹45 Cr	+14.7%
EBITDA Margin	6.2%	7.7%	8.0%	8.1%	—
PAT (Net Profit)	₹9 Cr	₹5 Cr	₹6 Cr	₹8 Cr	-5.2%
EPS	₹1.35	₹0.78	₹0.92	₹1.15	-5.2%
ROE	7.1%	3.9%	4.5%	5.3%	—
ROCE	13.2%	14.2%	16.3%	15.5%	—
Total Debt	₹146 Cr	₹173 Cr	₹240 Cr	₹242 Cr	+18.3%
Free Cash Flow	-₹2 Cr	-₹10 Cr	-₹31 Cr	₹23 Cr	—

🟢 Revenue has grown at 5.1% a year over 3 years.

🟢 EBITDA has grown at 14.7% a year over 3 years.

🟢 EBITDA Margin has risen from 6.2% to 8.1% over 3 years (+1.9 pts).

🔴 PAT (Net Profit) has shrunk at 5.2% a year over 3 years.

🔴 EPS has shrunk at 5.2% a year over 3 years.

🔴 ROE has fallen from 7.1% to 5.3% over 3 years (-1.8 pts).

🟢 ROCE has risen from 13.2% to 15.5% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 18.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹551 Cr

Total Liabilities

₹409 Cr

Total Debt

₹242 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹40 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.8%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

15 Sept 2026

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

1 positive1 mixed4 general

Manaksia Aluminium Company vs Nifty 50: Returns Compared

Univest, 06 Oct

Manaksia Aluminium Company Limited (NSE:MANAKALUCO) Stock Rockets 61% As Investors Are Less Pessimistic Than Expected

Simply Wall Street, 10 Jan

Manaksia Aluminium Company Limited announces a special window for re-lodgement of physical share transfer requests

AL Circle, 15 May

Manaksia Aluminium Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Manaksia Aluminium Company standalone net profit rises 62.00% in the March 2026 quarter

Business Standard, 08 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Manaksia Aluminium Company Share Price: Price Rise Analysis

Univest, 10 AugPrice 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.

Watch Items

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

🟡Business QualityAdequate10.3/20

🔴Financial HealthStretched8.6/20

🔴GrowthWeak5.7/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive12/15

🔴RiskHigh3.5/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 6%8.1%
✗Debt / EBITDA falls below 3x5.4x
✗Interest cover stays above 3x1.4x
✓Revenue growth stays above 4% a year5.1% CAGR
✓Free cash flow remains positive₹23 Cr