At a Glance
Manaksia Ltd – the company that does everything from steel sheets to bottle caps – reported Q1 FY26 revenue ₹173 Cr (-35% YoY) and PAT ₹15 Cr (-22% YoY). Margins shrank to 6% as metal trading isn’t exactly a high-margin Bollywood blockbuster. At P/E 11.5x and P/B 0.9x, the stock looks cheap on paper but comes with baggage.
Introduction
Manaksia is like that relative who once had an industrial empire and now sells whatever keeps the lights on. With plants in India, Nigeria, and Ghana, the company trades steel products, coated sheets, and even caps for your fizzy drinks. Sounds glamorous? Not really. Sales have been shrinking, profits unstable, and dividends missing. Still, the market cap is ₹519 Cr, and promoters hold a tight 74.9%.
Business Model (WTF Do They Even Do?)
- Products: Steel roofing sheets, aluminium coils, crown caps, ROPP caps, and paper.
- Markets: India, West Africa.
- Core: Trading metals – buying, selling, thin margins.
- Revenue: Largely commodity-linked; cyclical with steel prices.
Roasting point: they’re neither a full-fledged manufacturer nor a pure trader – stuck somewhere in the middle.
Financials Overview
Q1 FY26
- Revenue: ₹173 Cr (-35% YoY)
- EBITDA: ₹10 Cr (OPM 6%)
- PAT: ₹15 Cr (-22% YoY)
- EPS: ₹2.29
FY25 Recap
- Revenue: ₹731 Cr
- PAT: ₹58 Cr
- ROE: 10.7%
- Dividend: Zero.
Comment: Other income (₹44 Cr TTM) props up profits – core operations are weak.
Valuation
- P/E Method
- EPS: ₹8.2
- Fair P/E: 10x
- Value ≈ ₹82
- P/B Method
- BV: ₹87
- P/B: 1x
- Value ≈ ₹87
- DCF:
- Given cyclical earnings, fair value ≈ ₹70–₹90
🎯 Fair Value Range: ₹70 – ₹90
CMP ₹79 is at fair value but not a screaming bargain.
What’s Cooking – News, Triggers, Drama
- AGM on Sept 23, 2025 – nothing spicy expected.
- Debt reduction: Company is almost debt-free.
- Trigger: None, unless steel prices rally.
- Buzz: Low liquidity, low analyst coverage – sleeper stock vibes.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 714 |
| Liabilities | 155 |
| Net Worth | 559 |
| Borrowings | 26 |
Remark: Strong balance sheet, but no use if revenue keeps shrinking.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 53 | 135 | -275 |
| Investing | -5 | -250 | 358 |
| Financing | -91 | -16 | -68 |
Remark: Wild swings in cash flows; FY25 saw negative ops cash.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 10.7% |
| ROCE | 16.2% |
| P/E | 11.5x |
| PAT Margin | 7% |
| D/E | 0.05 |
Remark: Debt-free, decent ROCE, but earnings quality questionable.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,165 | 702 | 731 |
| EBITDA | 146 | 96 | 54 |
| PAT | 108 | 79 | 58 |
Remark: Sales halved in 2 years – ouch.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| APL Apollo Tubes | 20,885 | 801 | 54x |
| Welspun Corp | 14,392 | 1,622 | 15x |
| Jindal Saw | 20,829 | 1,473 | 9x |
| Manaksia | 731 | 58 | 11x |
Remark: Tiny player in a sector of giants.
Miscellaneous – Shareholding, Promoters
- Promoters: 74.93%
- FIIs: <1%
- Public: 23.9%
Observation: Tight promoter control; low institutional interest.
EduInvesting Verdict™
Manaksia is a classic small-cap value trap – looks cheap but struggles with growth. The company has assets, low debt, and some cash, but declining sales, no dividends, and reliance on other income keep investors wary.
SWOT Quickie
- Strengths: Debt-free, strong promoter holding.
- Weaknesses: Shrinking revenue, low payout, poor earnings quality.
- Opportunities: Revival in steel cycle, expansion in Africa.
- Threats: Commodity volatility, corporate governance concerns.
Final Word: Suitable only for contrarian investors betting on a turnaround. Otherwise, better watch from the sidelines.
Written by EduInvesting Team | 30 July 2025
SEO Tags: Manaksia Q1 FY26 Results, Manaksia Small Cap Stock Analysis, Steel Trader Earnings
