1. At a Glance – Steel with Bajaj Surname, Debt with Bodybuilder Confidence
Mukand Ltd is trading at ₹132 with a market cap of ₹1,911 Cr. In the last 3 months, the stock is down ~4.15%, but zoom out one year and it’s up 33.7%. That’s classic steel stock behavior — moody but muscular.
Trailing twelve-month sales stand at ₹4,728 Cr with PAT of ₹60 Cr. Stock P/E is 31.8 against an industry median of ~20.8. ROCE is 9.91%, ROE 7.84%, and debt-to-equity a slightly uncomfortable 1.89. Interest coverage? Just 1.71. That’s not exactly “sleep peacefully at night” territory.
Latest Q3 FY26 numbers:
Revenue ₹1,331 Cr, PAT ₹10 Cr, EPS ₹0.71.
Operating margins are hovering around 5–6%. Not glamorous. Not terrible. Just… steel.
But here’s the masala:
₹673 Cr land sale approved. Slump sale of industrial machinery business. Solar power agreements. Debt reduction story from ₹2,500 Cr to ~₹1,400 Cr over 4 years (though current borrowings now at ₹1,811 Cr).
Is this a steel turnaround story or an asset monetization marathon?
Let’s open the furnace.
2. Introduction – The Bajaj Cousin Who Chose Steel Instead of Scooters
Mukand Ltd is part of the Bajaj Group. Yes, that Bajaj family — the same ecosystem that includes Bajaj Auto, Bajaj Finance, Bajaj Finserv, and Bajaj Holdings.
But instead of financing your dreams or selling you a Pulsar, Mukand makes alloy steel billets, bars, rods, and EOT cranes. Not sexy. Not Instagrammable. But essential.
In FY24, revenue declined slightly due to lower volumes and subdued international demand. Freight costs rose. Steel prices danced. Margins improved from -3% in FY23 to ~6% in FY24 thanks to lower raw material costs.
So we have:
- Stable promoter holding: 74.7%
- Capacity utilization: ~90%
- Exports: 7%
- Domestic market: 93%
- Automotive clients: Maruti, Hyundai, Toyota, Bajaj Auto, Hero MotoCorp, Honda
That’s a solid client list.
But here’s the question:
If demand was subdued and freight costs high, how sustainable is this margin recovery?
Steel doesn’t forgive mediocrity.
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Mukand has two main divisions:
1) Specialty Steel Division (~96%)
They manufacture alloy steel and stainless steel products — billets, blooms, rounds, wire rods, bars, bright bars.
Main customers? Automotive companies.
So if you’ve ever driven a Maruti or a Bajaj Auto bike, there’s a
