Manaksia Limited

Industrials — Metal Fabrication · NSE

₹57.75−₹0.01 (−0.02%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, 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 both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Manaksia Limited, together with its subsidiaries, provides galvanized steel coils and sheets, color-coated steel, and pre-painted aluminum coils and sheets in India and internationally. The company operates through Packaging Product, Metal Products, and Others segments.

IndustryMetal Fabrication

SectorIndustrials

Employees1,050

Annual revenue₹784 Cr

How does it make money?

Turns over ₹784 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,050 employees supports ₹74.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.3%

Net margin6.7%

Revenue / employee₹74.7 lakh

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?Little sign of one

Returns on capital of 9.5% 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.

ROCE9.5%

ROE7.2%

Peer median ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -33% 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-33%

Margin effect-27%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.4% a year
✗ Profit has declined at 21.2% a year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

80/ 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

6.0x

3Y Median

7.4x

40 monthly readings · mean 7.2x · range 5.0x–9.3x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 3y median of 7.4x. 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 50% below the peer median of 12.2x.

vs. its own history

Fair

7.4x median over 40 months · -18%

vs. sector peers

Cheap

12.2x median of 4 peers · -50%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.0x

P/B

0.52x

EV/EBITDA

5.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 48% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 18.2% to 9.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 16.9% to 9.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 4.07x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.9 points, from 18.2% to 9.3%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹60 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 51% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 48% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 50% 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 18.2% to 9.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.07x. Interest is payable whether or not the business has a good year.
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

1EBITDA margin holds above 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹60 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 9.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 7.4x✓ 6.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

5 good · 3 neutral · 3 weak

Market Cap

₹378 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.0x

Cheap

Cheap against the generic band

P/B Ratio

0.52x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.59

Profitable

Profitable on a per-share basis

ROE

7.2%

Weak

Weak capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.07x

High

High leverage

Revenue Growth (YoY)

28.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

69.9%

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

-₹60 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹57.75

Operating Margin

6.8%

Average

Average margins

Net Margin

7.5%

Average

Average bottom-line conversion

Current Ratio

7.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

60.4 / 60.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,165 Cr	₹702 Cr	₹731 Cr	₹784 Cr	-12.4%
EBITDA	₹212 Cr	₹142 Cr	₹80 Cr	₹73 Cr	-30.0%
EBITDA Margin	18.2%	20.3%	11.0%	9.3%	—
PAT (Net Profit)	₹107 Cr	₹76 Cr	₹56 Cr	₹52 Cr	-21.2%
EPS	₹16.3	₹11.53	₹8.54	₹7.99	-21.2%
ROE	9.5%	13.7%	9.8%	7.2%	—
ROCE	16.9%	19.5%	15.5%	9.5%	—
Total Debt	₹58 Cr	₹74 Cr	₹26 Cr	₹30 Cr	-19.5%
Free Cash Flow	₹42 Cr	₹133 Cr	-₹288 Cr	-₹60 Cr	—

🔴 Revenue has shrunk at 12.4% a year over 3 years.

🔴 EBITDA has shrunk at 30.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.2% to 9.3% over 3 years (-8.9 pts).

🔴 PAT (Net Profit) has shrunk at 21.2% a year over 3 years.

🔴 EPS has shrunk at 21.2% a year over 3 years.

🔴 ROE has fallen from 9.5% to 7.2% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 16.9% to 9.5% over 3 years (-7.4 pts).

🟢 Total Debt has shrunk at 19.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹42 Cr to -₹60 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹862 Cr

Total Liabilities

₹115 Cr

Total Debt

₹30 Cr

Cash & Equivalents

₹33 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹49 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.2%

Corporate Actions

Ex-Dividend Date

14 Sept 2023

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

2 mixed4 general

Manaksia Steels (MANAKSTEEL) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Compare MANAKSIA. with R.T.EXPORTS

Equitymaster, 16 Oct

Manaksia Share Price rises 8.4%: valuation view

Univest, 10 SeptPrice 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.

Is Now The Time To Put Manaksia Steels (NSE:MANAKSTEEL) On Your Watchlist?

Simply Wall Street, 14 Sept

Manaksia Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 10 AugAnalyst view

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

Compare MANAKSIA. with DEVIKA FINST

Equitymaster, 13 Oct

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 QualityWeak5.9/20

🟡Financial HealthAdequate11.9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive11.8/15

🟡RiskModerate4.8/10

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

This thesis breaks if

✓EBITDA margin holds above 7%9.3%
✗Free cash flow remains positive-₹60 Cr
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 8%9.5%
✓Valuation vs its own median of 7.4x6.0x today