At a Glance
Manaksia Steels (MSL) just rolled out Q1 FY26 results with 30% YoY revenue growth, improved profitability (PAT ₹6.35 Cr, +172% YoY), and a ₹40 Cr capex to expand its colour coating line by 90,000 MT at Haldia. Stock is at ₹62.6, cooling off after recent highs. The company is finally looking lively, but margins remain wafer-thin, and ROE is still duller than unpolished steel.
1. Introduction
Once just another player in India’s steel clutter, Manaksia Steels is now trying to move from “commodity-grade” to “value-added” products. The company, part of the Manaksia Group, is betting on its ISO-certified multi-location plants to churn out pre-painted galvanized coils, cold rolled sheets, and coated steel for construction, automotive, and white goods. The Q1 results give a whiff of turnaround, but investors should remember—steel cycles swing faster than a cricket bat in T20.
2. Business Model (WTF Do They Even Do?)
MSL manufactures and sells secondary steel products such as colour-coated sheets, galvanized coils, and cold-rolled steel.
- Revenue Mix: Primarily domestic, with small export exposure.
- Clients: Construction firms, industrial users, retail distributors.
- USP: Low cost, light engineering capabilities, and a new focus on coating lines.
Roast: They take steel, add some colour, and hope the market sees rainbows.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹201 Cr (+30% YoY)
- EBITDA: ₹10 Cr (OPM 4.9%)
- PAT: ₹6.35 Cr (+172% YoY)
- EPS: ₹0.97
Comment: Strong growth, but operating margin is still thin—like samosa filling at a budget wedding.
4. Valuation
- P/E: 26x – steep for a small-cap steel company.
- P/B: 1.34x – reasonable.
- Fair Value Range: ₹50 – ₹70.
Sarcasm: At this price, the market is valuing hope more than the steel itself.
5. What’s Cooking – News, Triggers, Drama
- Capex Alert: ₹40 Cr investment to expand coating line (growth potential).
- Capacity: Additional 90,000 MT by FY27.
- AGM Buzz: 24th AGM on 23rd Sept 2025.
- Industry Tailwind: Steel demand steady; colour-coated segment booming.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 546 | 545 |
| Borrowings | 183 | 206 |
| Net Worth | 309 | 307 |
Remark: Stable but no fireworks. Borrowings rising slightly.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash | 29 | -49 | 13 |
| Investing Cash | -67 | -84 | -19 |
| Financing Cash | 35 | 131 | 12 |
Joke: Cash flows are like a bad Wi-Fi signal—sometimes it works, sometimes it doesn’t.
8. Ratios – Sexy or Stressy?
| Ratio | 2023 | 2024 | TTM |
|---|---|---|---|
| ROE | 6% | 4% | 3.8% |
| ROCE | 10% | 4% | 4.1% |
| OPM | 3% | 2% | 3% |
| D/E | 0.6x | 0.7x | 0.67x |
Verdict: Ratios are more stress than sexy. Needs better margin expansion.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | TTM |
|---|---|---|---|
| Revenue | 641 | 584 | 629 |
| EBITDA | 17 | 12 | 20 |
| PAT | 13 | 12 | 16 |
Observation: Revenue steady, profits improving slowly.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| JSW Steel | 50x | 4.9% | 14.5% |
| Jindal Steel | 28x | 7.8% | 19% |
| SAIL | 17x | 4.4% | 10.7% |
| Manaksia | 26x | 3.8% | 3.1% |
Comment: Manaksia is a minnow competing with whales. Margins must improve to justify valuations.
11. Miscellaneous – Shareholding
- Promoters: 74.8% (stable)
- FIIs: Nil
- Public: 24.6%
Sarcasm: Promoters still holding the keys; retail holds the dreams.
12. EduInvesting Verdict™
Manaksia Steels is trying to paint a comeback story with capex and revenue growth. However, margins remain fragile, cash flows inconsistent, and valuations rich for its current performance.
SWOT
- Strengths: Strong promoter holding, new coating capacity, ISO certification.
- Weaknesses: Low ROE, thin margins, volatile cash flows.
- Opportunities: Rising demand for coated steel, infrastructure boom.
- Threats: Steel price swings, competition from biggies like JSW/Tata.
Final Word: A value-added steel player with growth triggers, but still early innings. Investors need patience and strong nerves.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Manaksia Steels Q1 FY26, Manaksia Results, Steel Stocks, Colour Coated Steel
