Manaksia Coated Metals & Industries Limited

Industrials — Metal Fabrication · NSE

₹126.30−₹0.60 (−0.47%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently 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 Coated Metals & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Manaksia Coated Metals & Industries Limited manufactures and sells coated metal products in India and internationally. The company operates through Metal Products and Others segments.

IndustryMetal Fabrication

SectorIndustrials

Employees294

Annual revenue₹882 Cr

How does it make money?

Turns over ₹882 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 294 employees supports ₹3.00 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.3%

Net margin4.6%

Revenue / employee₹3.00 Cr

Who are its competitors?

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

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Some evidence

ROCE of 18.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.0%

ROE11.7%

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 +36% while net margin moved +219% 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+219%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.42 — historically steadier than the index
✗ 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

63/ 100

Average

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

Valuation

59/ 100

Fair

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

30.3x

3Y Median

46.7x

40 monthly readings · mean 46.3x · range 12.7x–97.4x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 46.7x. 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 149% above the peer median of 12.2x.

vs. its own history

Cheap

46.7x median over 40 months · -35%

vs. sector peers

Expensive

12.2x median of 4 peers · +149%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.3x

P/B

2.95x

EV/EBITDA

17.9x

PEG

0.48

Dividend Yield

0.04%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 5.2% to 9.3% over 3 years.
Debt is being paid down
Total debt is down 32% over 3 years.
Return on equity is rising
ROE has improved from 7.8% to 11.7%.
Return on capital is rising
ROCE has improved from 11.7% to 18.0%.
Valuation below its historical average
At 30.3x the stock trades 35% below its own median of 46.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 125% against revenue growth of 36% — customers are taking longer to pay.

Red Flags

4 items require attention · 2 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.
🔴Receivables growing faster than salesFinancial
Receivables up 125% against revenue up 36% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹57 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 61% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.2% to 9.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 35% 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?

Sales are being booked faster than collected
Receivables are up 125% against revenue up 36%. 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 149% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 8% a year✓ 10.9% CAGR
Latest reported year was 4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹57 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

3 good · 6 neutral · 2 weak

Market Cap

₹1,347 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.95x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.17

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

18.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

4.9%

Modest

Modest growth

Profit Growth (YoY)

-7.0%

Falling

Profits are shrinking

Dividend Yield

0.04%

Modest

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

Free Cash Flow

-₹57 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹126.3

Operating Margin

9.5%

Average

Average margins

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

1.79

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

128.6 / 124.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹648 Cr	₹735 Cr	₹780 Cr	₹882 Cr	+10.9%
EBITDA	₹33 Cr	₹53 Cr	₹59 Cr	₹82 Cr	+35.0%
EBITDA Margin	5.2%	7.1%	7.5%	9.3%	—
PAT (Net Profit)	₹9 Cr	₹11 Cr	₹15 Cr	₹41 Cr	+63.2%
EPS	₹1.43	₹1.67	₹2.07	₹4.32	+44.6%
ROE	7.8%	7.4%	6.8%	11.7%	—
ROCE	11.7%	18.5%	16.0%	18.0%	—
Total Debt	₹190 Cr	₹178 Cr	₹145 Cr	₹130 Cr	-11.9%
Free Cash Flow	-₹3 Cr	₹14 Cr	₹8 Cr	-₹57 Cr	—

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

🟢 EBITDA has grown at 35.0% a year over 3 years.

🟢 EBITDA Margin has risen from 5.2% to 9.3% over 3 years (+4.2 pts).

🟢 PAT (Net Profit) has grown at 63.2% a year over 3 years.

🟢 EPS has grown at 44.6% a year over 3 years.

🟢 ROE has risen from 7.8% to 11.7% over 3 years (+3.8 pts).

🟢 ROCE has risen from 11.7% to 18.0% over 3 years (+6.3 pts).

🟢 Total Debt has shrunk at 11.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹755 Cr

Total Liabilities

₹406 Cr

Total Debt

₹130 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.9%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

27 Aug 2026

Peer Comparison

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

Recent News

1 positive2 mixed3 general

Is Manaksia Coated Metals and Industries the Best Stock in Its Sector? A Look at the Numbers

Univest, 01 Oct

Manaksia Coated Metals & Industries' (NSE:MANAKCOAT) Earnings Are Of Questionable Quality

Simply Wall Street, 14 MayResults

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

Manaksia Coated Metals profit surges 162% on higher realisations

scanx.trade, 14 JulResults

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

Manaksia Coated Metals & Industries Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Manaksia Coated EBITDA Jumps 24% to ₹28.2 Cr as Margins Expand to 10.74%

Sahi, 14 Jul

Manaksia Coated Metals & Industries Ltd (BOM:539046) Q1 2027 Earnings Call Highlights: ...

Yahoo Finance, 16 JulResults

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

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong13.8/20

🟢GrowthStrong13.3/20

🟡ProfitabilityModerate8.5/15

🟡ValuationFair9.5/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓Revenue growth stays above 8% a year10.9% CAGR
✓EBITDA margin holds above 7%9.3%
✗Free cash flow remains positive-₹57 Cr
✓Interest cover stays above 3x3.1x
✓Debt / EBITDA stays below 2x1.6x