Mukand Ltd is the Bajaj family’s forgotten child – while Bajaj Auto zooms with Pulsars, Mukand plays with alloy steel billets and EOT cranes. At CMP ₹129 (–21% in one year), market cap stands at ₹1,865 Cr. The stock is down but debt is still ₹1,559 Cr, giving it an EV of ₹3,399 Cr.
Key metrics: P/E 23×, ROE 7.8%, ROCE 9.9%. Book value ₹65.7 → P/B ~2×. Dividend yield 1.55%. OPM at 5.5% shows they can at least cover chai-paani. Quarterly revenue dipped –10.3% to ₹1,129 Cr, but PAT grew 19% YoY to ₹29 Cr. Auditor verdict: company is like a student who failed maths but somehow topped PT.
2. Introduction
Imagine being part of the mighty Bajaj Group and still being introduced at parties as “arre ye steel wala hai”. Mukand Ltd is that cousin. Born as a specialty steel player, it caters to Maruti, Hyundai, Toyota, Hero, Honda, Bajaj Auto – basically every auto OEM. Yet the share price chart looks like an ECG of a patient in ICU.
The last 5 years saw steel cycles, debt overhang, and asset sales. Mukand sold land, sold stakes, sold subsidiaries, and probably would’ve sold staplers too if allowed. Debt fell from ₹2,500 Cr in FY20 to ~₹1,400 Cr in FY24 – commendable, but still higher than what their balance sheet can comfortably carry.
Still, management is busy announcing solar power tie-ups (Tata Power, Amplus), demergers (Mukand Sumi Steel, Stainless India Ltd), and slump sales (industrial machinery to Mukand Heavy Engineering). Every year, auditors like us get new homework: “Track which asset Mukand just sold.”
3. Business Model – WTF Do They Even Do?
Mukand operates two divisions:
Specialty Steel (96% revenue) – Billets, bars, rods, bright wires, stainless steel. Mostly feeds the auto sector (Maruti, Toyota, Bajaj Auto) and some industrial engineering. Plants at Thane (Maharashtra) and Hospet (Karnataka) with 5.7 lakh MTPA capacity, running at ~90% utilization.
Industrial Machinery & Engineering (4% revenue) – EOT cranes, material handling equipment, turnkey projects. Basically the side hustle. In May 2025, they even slump-sold this business to a subsidiary.
Auditor’s note: Sales shrinking, EBITDA collapsing, but PAT looks healthy thanks to “other income” magic. Basically, profit is less from steel, more from jugad.
5. Valuation Discussion – Fair Value Range
P/E Method: FY25 EPS ~₹5.6. CMP ₹129 = P/E 23×. Industry avg ~22×. Fair P/E band 15–20× → ₹85–₹115/share.
