M P K Steels (I) Limited

Basic Materials — Steel · BSE

₹83.10−₹8.85 (−9.62%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by 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, 6:09 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 M P K Steels (I) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

M P K Steels (I) Limited manufactures and sells structural steel products. It offers M.S. channels, joists/beams, angles, square bars, round bars, and flats. The company distributes its products through dealers.

IndustrySteel

SectorBasic Materials

Annual revenue₹259 Cr

How does it make money?

Turns over ₹259 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation.

EBITDA margin4.4%

Net margin2.3%

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 17.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.4%

ROE15.9%

Peer median ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +95% while net margin moved +72% 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+95%

Margin effect+72%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

86/ 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

11.7x

1.2Y Median

21.5x

14 monthly readings · mean 19.5x · range 13.8x–25.2x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 1.2y median of 21.5x. 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 35% below the peer median of 18.2x.

vs. its own history

Cheap

21.5x median over 14 months · -45%

vs. sector peers

Cheap

18.2x median of 4 peers · -35%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

11.7x

P/B

1.63x

EV/EBITDA

7.7x

PEG

0.24

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 2.2% to 4.4% over 3 years.
Valuation below its historical average
At 11.7x the stock trades 45% below its own median of 21.5x.
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 695% against revenue growth of 95% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 695% against revenue up 95% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.2% to 4.4%. 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 45% 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 35% 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?

Sales are being booked faster than collected
Receivables are up 695% against revenue up 95%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 19% a year✓ 25.0% CAGR
Latest reported year was 68.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 3 neutral · 1 weak

Market Cap

₹85 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

1.63x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.08

Profitable

Profitable on a per-share basis

ROE

15.9%

Strong

Strong capital efficiency

ROCE

17.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

68.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.1%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹83.1

ROA

6.9%

Average

Average asset productivity

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.80

Comfortable

Healthy short-term liquidity

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

94.6 / 94.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹133 Cr	₹183 Cr	₹207 Cr	₹259 Cr	+25.0%
EBITDA	₹3 Cr	₹6 Cr	₹10 Cr	₹11 Cr	+56.0%
EBITDA Margin	2.2%	3.1%	4.9%	4.4%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹6 Cr	₹6 Cr	+49.7%
EPS	₹1.78	₹3.05	₹5.63	—	—
ROE	12.0%	17.1%	23.7%	11.6%	—
ROCE	15.8%	24.0%	28.8%	17.4%	—
Total Debt	₹15 Cr	₹14 Cr	₹18 Cr	₹17 Cr	+5.2%
Free Cash Flow	-₹4 Cr	₹1 Cr	-₹6 Cr	-₹5 Cr	—

🟢 Revenue has grown at 25.0% a year over 3 years.

🟢 EBITDA has grown at 56.0% a year over 3 years.

🟢 EBITDA Margin has risen from 2.2% to 4.4% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 49.7% a year over 3 years.

🟡 ROE has held roughly flat at 11.6% over 3 years.

🟢 ROCE has risen from 15.8% to 17.4% over 3 years (+1.6 pts).

🔴 Total Debt has grown at 5.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹117 Cr

Total Liabilities

₹65 Cr

Total Debt

₹17 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.1%

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 mixed5 general

M P K STEELS (I) (MPKSTEELS) Share Price Falls 14.55% Today

Univest, 05 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

M P K STEELS (I) LIMITED Share Price

Upstox, 05 May

TIKONA Stock Price and Chart — NSE:TIKONA

TradingView, 15 Oct

M P K Steels (I) Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

2,693,533 Equity Shares of M P K Steels (I) Limited are subject to a Lock-Up Agreement Ending on 2-OCT-2026.

marketscreener.com, 02 Oct

M P K Steels secures three-month AGM extension until December 2026

scanx.trade, 05 Sept

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive11.8/15

🔴RiskHigh2.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 19% a year25.0% CAGR
✓EBITDA margin holds above 2%4.4%
✗Free cash flow remains positive-₹5 Cr
✓Debt / EBITDA stays below 2x1.5x
✓ROCE stays above 14%17.4%