Mangalam Worldwide Limited

Basic Materials — Steel · NSE

₹39.95−₹0.62 (−1.53%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mangalam Worldwide Limited manufactures and sells stainless steel billets and ingots in India and internationally. The company offers stainless steel billets, flat bars, and round bars. It also provides bright bars, seamless tubes, pipes, and ERW pipes.

IndustrySteel

SectorBasic Materials

Employees509

Annual revenue₹1,208 Cr

How does it make money?

Turns over ₹1,208 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 509 employees supports ₹2.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.37 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 21.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +87% while net margin moved +55% 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+87%

Margin effect+55%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.14x is on the heavy side
• Current ratio of 1.50 covers short-term liabilities, without much slack
✓ Free cash flow is positive — the business funds its own capex
✗ Interest cover of only 2.4x — little room if profits dip
✗ Debt has grown 40.7% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

64/ 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

21.5x

3Y Median

19.5x

40 monthly readings · mean 21.6x · range 14.4x–36.8x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 10% above its 3y median of 19.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 18% above the peer median of 18.2x.

vs. its own history

Fair

19.5x median over 40 months · +10%

vs. sector peers

Fair

18.2x median of 4 peers · +18%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.5x

PEG

0.50

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.2% to 8.1% over 3 years.
Return on equity is rising
ROE has improved from 12.7% to 16.7%.
Return on capital is rising
ROCE has improved from 11.7% to 21.4%.
High return on capital employed
ROCE of 21.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 179% over 3 years, from ₹85 Cr to ₹236 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 204% against revenue up 87% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 620% against revenue up 87% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.4% 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 3.2% to 8.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 204% against revenue up 87%. 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.
Several serious flags at once
4 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 17% a year✓ 23.3% CAGR
Latest reported year was 13.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.

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

6 good · 5 neutral · 0 weak

Market Cap

₹1,187 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.86

Profitable

Profitable on a per-share basis

ROE

17.8%

Strong

Strong capital efficiency

ROCE

21.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.14x

Moderate

Moderate leverage

Revenue Growth (YoY)

13.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

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

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

7.0%

Average

Average asset productivity

Operating Margin

9.7%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

1.50

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

42.2 / 41.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹644 Cr	₹818 Cr	₹1,061 Cr	₹1,208 Cr	+23.3%
EBITDA	₹21 Cr	₹41 Cr	₹60 Cr	₹98 Cr	+67.8%
EBITDA Margin	3.2%	5.1%	5.7%	8.1%	—
PAT (Net Profit)	₹17 Cr	₹22 Cr	₹29 Cr	₹50 Cr	+42.8%
EPS	₹0.76	₹0.85	₹1.03	₹1.69	+30.7%
ROE	12.7%	12.1%	11.5%	16.7%	—
ROCE	11.7%	16.6%	18.7%	21.4%	—
Total Debt	₹85 Cr	₹103 Cr	₹192 Cr	₹236 Cr	+40.7%
Free Cash Flow	-₹101 Cr	-₹21 Cr	-₹91 Cr	-₹1 Cr	—

🟢 Revenue has grown at 23.3% a year over 3 years.

🟢 EBITDA has grown at 67.8% a year over 3 years.

🟢 EBITDA Margin has risen from 3.2% to 8.1% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 42.8% a year over 3 years.

🟢 EPS has grown at 30.7% a year over 3 years.

🟢 ROE has risen from 12.7% to 16.7% over 3 years (+4.0 pts).

🟢 ROCE has risen from 11.7% to 21.4% over 3 years (+9.8 pts).

🔴 Total Debt has grown at 40.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹929 Cr

Total Liabilities

₹623 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹26 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.9%

Corporate Actions

Dividend Rate

₹0.03

Ex-Dividend Date

23 Jul 2026

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

3 positive1 mixed2 general

Mangalam Worldwide Q2FY27 Results: Net profit up 31% YoY, EBITDA margin expands

scanx.trade, 18 OctResults

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

Mangalam Worldwide vs Nifty 50: Share Price Performance Compared

Univest, 06 Oct

Mangalam Worldwide’s board approves 1:10 stock split as smallcap rises 120% in a year

The Economic Times, 18 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Mangalam Worldwide's (NSE:MWL) Earnings Are Weaker Than They Seem

Simply Wall Street, 05 JulResults

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

Mangalam Worldwide Approves 1:10 Stock Split To Boost Equity Liquidity And Retail Participation

Sahi, 15 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Small-cap NSE stock to be in focus on Monday; here's why

Livemint, 12 Apr

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health · Valuation · Risk

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑