1. At a Glance – The Magnet That Refuses To Be Cheap
Permanent Magnets Ltd (PML) is one of those classic Indian smallcap stories that looks boring at first glance and then suddenly slaps you with a 58x P/E and says, “Deal with it.”
Market cap sits at ₹785 crore, sales at ₹205 crore, and trailing EPS at ₹14.4 — not exactly large, but the valuation clearly thinks this company is manufacturing Tesla-grade magic instead of humble magnets and shunts.
The latest Q3 FY26 (Dec 2025) numbers show ₹57.02 crore revenue (+15.5% YoY) and ₹2.25 crore PAT (+62.8% YoY). Margins bounced back sharply, OPM clocked 18.4%, and the stock rewarded itself with optimism while long-term growth numbers quietly sulked in the corner.
Debt is low (₹28.8 crore, D/E 0.19), promoter holding is solid at 58%, pledges are zero, and working capital days are… well, a bit magnetically stuck at 175 days.
So the big question:
Is this a quiet compounding industrial niche player or a small factory priced like a global EV supplier?
Let’s pull this magnet apart — carefully, before it snaps back.
2. Introduction – A 1960s Company Living in a 2030 Valuation
Founded in 1960, Permanent Magnets Ltd is part of the Taparia Group, Mumbai — a group better known for quietly building industrial businesses without screaming about them on Twitter or investor decks.
PML doesn’t sell consumer glamour. No brands, no billboards, no festive ads. Instead, it lives deep inside electricity meters, EV current sensing modules, telecom equipment, defence applications, railways, and power systems.
Basically, the kind of products you never notice — until they fail.
And the market loves this kind of boring reliability… sometimes a little too much.
Despite:
- TTM sales growth: -4%
- TTM profit growth: -19%
- ROE: 11.5%
- ROCE: 15.2%
…the stock trades at a valuation usually reserved for companies screaming “EV! Energy Transition! China+1!”
Is the optimism justified? Or is the magnet pulling valuations harder than fundamentals?
Keep reading.
3. Business Model – WTF Do They Even Do? (Magnets, But Make It Complicated)
Permanent Magnets Ltd is not just about magnets. That’s like saying ISRO is about fireworks.
PML operates across engineering and current sensing applications, supplying precision components where accuracy matters more than volume.
a) Magnetic Assemblies
This is where the old-school magnet business lives:
- Magnetic separators & filters (industrial impurity removal)
- Magnetic lifters (lifting steel plates like it’s nothing)
- Magnetic holding devices for machining
- Home & office magnetic products (knife holders, tool holders, sweepers)
Low glamour. High utility.
b) Shunts, Shunt Assemblies & Brass Terminals
This is the real growth engine:
- Precision manganin shunts for electricity meters
- EV-grade shunts
- Electron-beam welded shunts
- Brass terminals & connectors for meters
If India electrifies, meters multiply. If EVs scale, current sensing explodes. PML sits right there.
c) Magnetic Cores & Shields
High-permeability nickel & iron components:
