Manaksia Steels Limited

Basic Materials — Steel · NSE

₹112.80+₹2.52 (+2.29%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Manaksia Steels Limited manufactures and sells secondary steel products in India and internationally.

IndustrySteel

SectorBasic Materials

Employees269

Annual revenue₹1,131 Cr

How does it make money?

Turns over ₹1,131 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 269 employees supports ₹4.20 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin6.8%

Net margin3.5%

Revenue / employee₹4.20 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.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Some evidence

ROCE of 20.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE20.3%

ROE12.2%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +52% while net margin moved +115% 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+52%

Margin effect+115%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.49 — 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

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.2x

3Y Median

25.7x

40 monthly readings · mean 27.7x · range 10.2x–50.3x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 49% below its 3y median of 25.7x. 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 28% below the peer median of 18.2x.

vs. its own history

Cheap

25.7x median over 40 months · -49%

vs. sector peers

Cheap

18.2x median of 4 peers · -28%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.2x

P/B

2.27x

EV/EBITDA

11.5x

PEG

0.27

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 3.5% to 6.8% over 3 years.
Cash generation is improving
Free cash flow is up 52% over 3 years.
Return on equity is rising
ROE has improved from 4.2% to 12.2%.
Return on capital is rising
ROCE has improved from 6.7% to 20.3%.
High return on capital employed
ROCE of 20.3% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 13.2x the stock trades 49% below its own median of 25.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 210% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 290% against revenue growth of 52% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 210% over 3 years, from ₹49 Cr to ₹151 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 290% against revenue up 52% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.3% 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 3.5% to 6.8%. 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 49% 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.
Cheaper than its peers
It trades 28% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹24 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 290% against revenue up 52%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 11% a year✓ 15.1% CAGR
Latest reported year was 50.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹739 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.2x

Cheap

Cheap against the generic band

P/B Ratio

2.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.57

Profitable

Profitable on a per-share basis

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

20.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

50.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

249.5%

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

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹112.8

Operating Margin

9.3%

Average

Average margins

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

108.6 / 100.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹742 Cr	₹681 Cr	₹634 Cr	₹1,131 Cr	+15.1%
EBITDA	₹26 Cr	₹39 Cr	₹15 Cr	₹77 Cr	+44.1%
EBITDA Margin	3.5%	5.8%	2.4%	6.8%	—
PAT (Net Profit)	₹12 Cr	₹28 Cr	₹10 Cr	₹40 Cr	+48.5%
EPS	₹1.86	₹4.33	₹1.49	₹6.09	+48.5%
ROE	4.2%	9.4%	3.4%	12.2%	—
ROCE	6.7%	14.5%	6.5%	20.3%	—
Total Debt	₹49 Cr	₹186 Cr	₹206 Cr	₹151 Cr	+45.8%
Free Cash Flow	₹16 Cr	-₹91 Cr	-₹57 Cr	₹24 Cr	+15.0%

🟢 Revenue has grown at 15.1% a year over 3 years.

🟢 EBITDA has grown at 44.1% a year over 3 years.

🟢 EBITDA Margin has risen from 3.5% to 6.8% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 48.5% a year over 3 years.

🟢 EPS has grown at 48.5% a year over 3 years.

🟢 ROE has risen from 4.2% to 12.2% over 3 years (+8.0 pts).

🟢 ROCE has risen from 6.7% to 20.3% over 3 years (+13.7 pts).

🔴 Total Debt has grown at 45.8% a year over 3 years.

🟢 Free Cash Flow has grown at 15.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹593 Cr

Total Liabilities

₹267 Cr

Total Debt

₹151 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹62 Cr

Capex

-₹37 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.7%

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 positive5 general

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

Simply Wall Street, 14 Sept

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

TechGraph, 08 Oct

Manaksia Steels Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

Manaksia Steels Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Manaksia Steels FY26 net profit jumps 309% to ₹39.92 crore

scanx.trade, 15 MayResults

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

Manaksia Steels Ltd Locks at Lower Circuit With 3.59% Loss — Sellers Queue, No Buyers in Sight

MarketsMojo, 05 Oct

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong14.4/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 11% a year15.1% CAGR
✓EBITDA margin holds above 5%6.8%
✓Free cash flow remains positive₹24 Cr
✓Debt / EBITDA stays below 2x2.0x
✓ROCE stays above 17%20.3%