1. At a Glance – Blink and You’ll Miss the Margin Expansion
Manaksia Coated Metals & Industries Ltd is currently a ₹1,242 Cr market cap steel processor pretending to be boring while quietly exporting shiny colour-coated coils to half the planet. The stock is trading around ₹117, down ~25% in the last 3 months, while the company casually drops a 491% YoY jump in Q2 FY26 PAT and says, “Bas capacity upgrade tha.”
Sales for the latest reported quarter came in at ₹186.9 Cr, profits at ₹7.41 Cr, and operating margins have climbed from “steel is suffering” levels to a respectable 8–12% band. Debt has come down to ₹103 Cr, promoter holding bounced back last quarter, and the order book stands tall at ₹600 Cr, with 85% exports.
Yet, the market is confused.
P/E at 30.6×, ROE below 9%, and a capital-heavy expansion plan that reads like a steel plant shopping list.
Is this a turnaround hiding in plain sight… or just another cyclical steel story wearing export makeup?
Let’s audit this properly.
2. Introduction – From Zinc Sheets to Global Shine (With Interest Cost Side-Effects)
Manaksia Coated Metals was incorporated in 2010 and decided early on that plain steel was too boring. So it moved up the value chain into galvanised (GI) and pre-painted steel (PPGI) — products that actually make money when commodity cycles behave.
The company operates out of Kutch, Gujarat, employs 400+ people, and sells steel not by weight alone, but by finish, coating, and colour. Its brands — Color Strong, Zingalvo, Singham — sound like they were named during a marketing brainstorm and a Bollywood marathon.
What sets Manaksia apart is not scale (yet), but export intensity.
85% of revenue comes from international markets, spanning Europe, Middle East, Africa, Latin America, and Asia. Germany, UK, France, Italy, UAE, Kenya — basically,
if someone needs a coated steel coil, Manaksia wants to be on the WhatsApp group.
But here’s the catch.
Steel processing is capital hungry, margins are thin, and interest costs don’t care about branding.
So the real question is not “Can they sell steel?”
It’s “Can they earn consistent returns on capital while expanding like this?”
3. Business Model – WTF Do They Even Do?
Let’s explain this like you’re smart but allergic to metallurgy.
Manaksia buys steel, coats it, paints it, cuts it, and sells it at a premium.
Core Products
1. Galvanised Steel (GI)
Steel sheets and coils coated with zinc to prevent corrosion.
Used in construction, engineering, and wherever rust is not invited.
2. Pre-Painted Galvanised Steel (PPGI)
This is where margins live.
Steel is first galvanised, then painted using a 2-coat, 2-bake process (2C2B) — better finish, longer life, higher realisations.
3. Value-Added Processing
Slitted coils and processed steel items — less sexy, but improves wallet share.
Revenue Mix (Q2 FY26)
- PPGI: 89.5%
- GI: 6.5%
- Others: 4%
Translation:
Manaksia is no longer a GI company. It is a PPGI export machine.
Capacity Utilisation
- GI: 81%
- PPGI: 100%
When your highest-margin product is running at full capacity, management starts dreaming. And Manaksia is dreaming in
