1. At a Glance
Manaksia Coated Metals just dropped a Q1 bombshell: ₹14 Cr PAT on ₹250 Cr sales, up 31% YoY. Also… they’re merging with a snacks company? Yes, really. This isn’t your average metal sheet stock — it’s a full-blown identity crisis in progress.
2. Introduction with Hook
Imagine a steel company walking into Shark Tank saying: “We also make mosquito coils… and want to merge with a snack brand.”
Cue Anupam Mittal’s expression.
- Q1 FY26: ₹14 Cr PAT | 10% OPM (best in 3 years)
- 5-year profit CAGR: 24%
- Stock up 117% in 1 year
From coated coils to crisp profits — what’s this beast really cooking?
3. Business Model (WTF Do They Even Do?)
Manaksia Coated is like a metal-wrapped onion — layer upon layer:
- Core Biz: Pre-painted & galvanized steel coils/sheets
- Clients: Infrastructure, construction, white goods, appliances
- Side Hustle: Mosquito repellent coil manufacturing
- Oddball: Contract manufacturer for Ultramarine Blue
- Now merging with… JPA Snacks Pvt Ltd (a subsidiary)
TL;DR — They paint steel and cook deals.
4. Financials Overview
TTM Financials (₹ Cr)
| Metric | Value |
|---|---|
| Revenue | 838 |
| EBITDA (OP) | 65 |
| PAT | 27 |
| EPS (TTM) | ₹3.06 |
| Market Cap | ₹1,426 Cr |
| P/E | 55x |
Key Takeaways
- Revenue growth is steady (~10% TTM)
- PAT growth in FY25: +33%
- Operating leverage kicking in
5. Valuation
Let’s do the math no one wants to do:
- CMP: ₹142
- Book Value: ₹28 → P/B: 5.08x
- TTM EPS: ₹3.06 → P/E: 46.4x (TTM), ~32x fwd
- EV/EBITDA: ~21x
Fair Value Range:
- Conservative (15x fwd P/E): ₹90–100
- Optimistic (30x fwd P/E + merger hype): ₹130–160
So yes, it’s at the upper end of hope… but not totally unbacked.
6. What’s Cooking – News, Triggers, Drama
Hot from the oven:
- Merger with JPA Snacks Pvt Ltd approved. FYI: JPA is a subsidiary and… a SNACK BRAND.
- Q1FY26 profit zoomed 364% YoY
- ROCE hit 15.3% — highest since FY19
- Promoter holding down from 69.19% to 55.55% in 1 quarter (yikes)
Possible Triggers:
- Corporate restructuring = market re-rating
- Entry into FMCG biz via snacks
- Debottlenecking metal biz for margin push
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 8 |
| Reserves | 215 |
| Borrowings | 142 |
| Other Liabilities | 275 |
| Fixed Assets + CWIP | 179 |
| Total Assets | 640 |
Verdict:
- Debt finally reducing (down ₹48 Cr YoY)
- Balance sheet strong-ish
- Assets mostly productive — not bloated
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹8 | -₹8 | -₹4 | 0 |
| FY24 | ₹22 | -₹6 | -₹16 | -₹0.2 |
| FY25 | ₹30 | -₹20 | -₹10 | 0 |
Key Takeaways:
- CFO is strong and growing
- Capex of ₹20 Cr last year (expanding?)
- No dividend love despite profits
9. Ratios – Sexy or Stressy?
| Ratio | Value | Trend |
|---|---|---|
| ROCE | 15.3% | Improving |
| ROE | 7.95% | Meh |
| OPM | 8% (TTM) | Best in 5 yrs |
| P/E | 55.2x | Expensive |
| Debtor Days | 23 | Excellent |
| Inventory Days | 171 | High (Steel biz pain) |
Call it “Mid-tier Sexy” with some bad hair days.
10. P&L Breakdown – Show Me the Money
Q1 FY26 (₹ Cr)
| Line Item | Value |
|---|---|
| Revenue | 250 |
| Operating Profit | 25 |
| OPM % | 10% |
| Interest | 8 |
| Depreciation | 2 |
| Net Profit | 14.10 |
| EPS | ₹1.41 |
Best quarter in company history. Profit margin in double digits for the first time in… ever?
11. Peer Comparison
| Company | CMP (₹) | P/E | MCap (Cr) | ROCE % | OPM % |
|---|---|---|---|---|---|
| APL Apollo Tubes | 1660 | 60.8 | 46023 | 22.8 | 5.8 |
| Ratnamani Metals | 2799 | 36.2 | 19596 | 21.6 | 15.9 |
| Godawari Power | 193 | 15.9 | 12901 | 23.3 | 22.2 |
| Manaksia Coated | 142 | 55.2 | 1426 | 15.3 | 8% |
Small fish, high valuation, big aspirations.
12. Miscellaneous – Shareholding, Promoters
| Holder | Mar 2024 | Jun 2025 | Change |
|---|---|---|---|
| Promoters | 69.19% | 55.55% | -13.6% |
| FIIs | 0.10% | 2.19% | +2.09% |
| Public | 30.7% | 42.22% | +11.5% |
Whoa moment: Promoter dumping 10%+ in 1 quarter… and FIIs nibbling? 👀
13. EduInvesting Verdict™
Manaksia Coated isn’t just a steel stock anymore — it’s becoming a “multi-product hybrid” with:
- Pre-painted steel
- Repellents
- Ultramarine powder
- And now… chakna?
Financials are firming up. Margins are growing. Cash flow is legit. But promoter selloff + bizarre merger plans = confusion.
Will this become the “Nestle of steel coils”? Doubtful.
But will it remain profitable, weirdly diversified, and mildly exciting? Very likely.
Keep this one on your “WTF watchlist.”
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: Manaksia Coated Metals, Steel, Snacks, FMCG Merger, Q1 FY26, Small Cap Momentum, Tata Sponge of Metal Coils
