Maithan Alloys: ₹1,806 Cr Sales, P/E 4.88 – The Ferro-Alloy Giant Trading Like It’s in a Yard Sale

1. At a Glance

Maithan Alloys is one of India’s largest manganese-based ferroalloy producers, with a domestic market share north of 5% and a customer base spanning steelmakers and industrial powerhouses. FY25 sales came in at ₹1,806 crore, PAT ₹631 crore, and ROCE at a sizzling 23.3%. Yet, the stock trades at a P/E of just 4.88 and a P/B of 0.82 — numbers usually reserved for distressed companies, not high-ROCE, low-debt cash machines. The twist? A big chunk of profits came from a jaw-dropping ₹721 crore “other income”, skewing the optics and giving investors that “is this sustainable?” itch.

2. Introduction

In the metals world, ferroalloys are the secret sauce in steelmaking — small in volume, huge in impact. Without them, your steel would be brittle junk. Maithan has been in the game long enough to own enviable market share, export reach, and a cost advantage through captive power.

But FY25’s fairy-tale bottom line hides an elephant in the ledger — a surge in other income that dwarfed operating profit. While this helped net profit and EPS balloon, it also means core ferroalloy operations aren’t the full story. The market seems to know, keeping valuations dirt cheap despite a fortress balance sheet and promoter holding at 74.96%.

3. Business Model (WTF Do They Even Do?)

• Core Business: Manufacture of bulk ferroalloys — Ferro Manganese, Silico Manganese, Ferro Silicon.
• Customers: Primarily steelmakers — both domestic and overseas.
• Power