The company's financial performance tells a tale of two narratives. On one hand, Manugraph India has demonstrated remarkable revenue recovery, with net sales in Q2 FY26 reaching ₹17.69 crores, representing a staggering 175.98% year-on-year growth. For the nine-month period ending December 2025, the company reported positive profit after tax of ₹4.89 crores, marking a significant turnaround from historical losses. On the other hand, the company's core operational metrics remain deeply concerning, with negative operating margins and deteriorating return ratios that underscore fundamental business challenges.
Financial Performance: A Volatile Revenue Trajectory
Manugraph India's quarterly revenue performance has been characterised by extreme volatility, reflecting the lumpy nature of capital equipment orders in the printing press manufacturing industry. In Q3 FY23 (March 2023), the company posted net sales of ₹35.10 crores, representing an extraordinary 169.59% quarter-on-quarter surge and 180.35% year-on-year growth. However, this was followed by a sharp 48.80% sequential decline to ₹13.02 crores in Q4 FY23 (December 2022).
| Quarter | Net Sales (₹ Cr) | QoQ Change | YoY Change | PAT (₹ Cr) | PAT Margin |
|---|---|---|---|---|---|
| Mar'23 | 35.10 | +169.59% | +180.35% | -2.04 | -5.81% |
| Dec'22 | 13.02 | -48.80% | +0.70% | 0.21 | 1.61% |
| Sep'22 | 25.43 | +322.43% | +57.46% | -3.50 | -13.76% |
| Jun'22 | 6.02 | -51.92% | — | -5.42 | -90.03% |
| Mar'22 | 12.52 | -3.17% | — | -3.77 | -30.11% |
| Dec'21 | 12.93 | -19.94% | — | -4.46 | -34.49% |
| Sep'21 | 16.15 | — | — | -3.19 | -19.75% |
On an annual basis, FY23 witnessed net sales of ₹79.00 crores, representing a 71.70% increase from ₹46.00 crores in FY22. This marked the second consecutive year of revenue growth following a devastating 76.00% decline in FY21 when sales plummeted to ₹29.00 crores from ₹121.00 crores in FY20. Despite this revenue recovery, the company posted a net loss of ₹10.00 crores in FY23, though this represented an improvement from the ₹15.00 crore loss in FY22.
The company's profitability metrics paint a concerning picture of operational inefficiency. Operating margins (excluding other income) stood at a deeply negative -17.70% in FY23, though this marked an improvement from -26.10% in FY22. The PAT margin of -12.70% in FY23, whilst better than the -32.60% recorded in FY22, remains unacceptably weak and highlights the company's inability to translate revenue growth into sustainable profitability.
Operational Challenges: Structural Weaknesses Persist
The fundamental issue plaguing Manugraph India is its inability to achieve operational profitability despite revenue growth. The company's operating profit before depreciation, interest, and tax (excluding other income) has been consistently negative, standing at -₹14.00 crores in FY23 and -₹12.00 crores in FY22. This persistent operational deficit indicates that the company's core business model struggles to generate positive cash flows from operations.
Employee costs have remained elevated relative to revenue, consuming ₹22.00 crores in FY23 against net sales of ₹79.00 crores, representing approximately 27.85% of revenue. Whilst this is an improvement from 41.30% in FY22, it remains high for a manufacturing business and suggests potential overstaffing or inefficient labour deployment. The company's total expenditure of ₹94.00 crores in FY23 exceeded its revenue by ₹15.00 crores, highlighting the fundamental disconnect between costs and revenue generation.
Critical Operational Concerns
Persistent Negative Operating Margins: The company has reported negative operating margins (excluding other income) for at least the past six years, with FY23 recording -17.70%. This structural deficit raises serious questions about the viability of the business model and management's ability to achieve operational efficiency.
Weak Return Ratios: Return on Equity (ROE) stands at a dismal -1.70% as of the latest reporting period, whilst the five-year average ROCE is -14.39%. These metrics indicate that the company is destroying shareholder value rather than creating it, with capital being deployed in fundamentally unprofitable operations.
The company's balance sheet shows shareholder funds of ₹99.14 crores as of March 2023, down from ₹109.91 crores in March 2022, reflecting the erosion of equity through accumulated losses. Fixed assets stood at ₹89.60 crores, representing the bulk of the asset base, whilst current assets of ₹72.08 crores provide some liquidity cushion. Notably, the company carries no long-term debt, which is a positive factor limiting financial risk, though current liabilities of ₹50.30 crores, including trade payables of ₹22.57 crores, require careful monitoring.
Industry Context: Challenging Market Dynamics
The printing press manufacturing industry has faced significant headwinds in recent years, driven by the secular shift towards digital media and declining demand for traditional print publications. Manugraph India operates in a niche segment of single-width web-offset printing presses, where it claims to be the largest manufacturer in India with a significant share of the global market. However, this market leadership has not translated into consistent profitability, suggesting either intense pricing competition, high fixed costs, or structural overcapacity in the industry.
The company's revenue volatility reflects the project-based nature of capital equipment sales, where order timing and execution can cause significant quarterly fluctuations. The five-year sales growth of just 2.30% indicates that whilst the company has experienced periods of strong growth, these have been offset by equally sharp declines, resulting in minimal net progress over the medium term.
Positive Development: Nine-Month Turnaround
The company's financial trend analysis for December 2025 shows a "Positive" rating, driven by several encouraging factors. Net sales in Q2 FY26 grew at an impressive 175.98%, whilst the nine-month PAT for FY26 reached ₹4.89 crores, representing a significant turnaround from historical losses. The inventory turnover ratio for H1 FY26 reached its highest level at 2.33 times, and cash and cash equivalents for H1 FY26 stood at their highest at ₹5.64 crores. These metrics suggest improving operational efficiency and liquidity in the near term.
Peer Comparison: Underperformance Across Key Metrics
When benchmarked against peers in the industrial manufacturing sector, Manugraph India's fundamental weaknesses become starkly apparent. The company's return on equity of 0.00% (effectively negative when considering the latest -1.70% figure) compares unfavourably with peers such as Vruddhi Engineers (17.63%), Srigee DLM (25.75%), and Solitaire Machine Tools (9.80%).
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Market Cap (₹ Cr) |
|---|---|---|---|---|---|
| Manugraph India | NA (Loss Making) | 0.90x | 0.00% | 0.01 | 48.00 |
| Vruddhi Engineers | 35.57x | 5.64x | 17.63% | 0.39 | — |
| Solitaire Machine | 33.98x | 2.45x | 9.80% | 0.14 | — |
| Srigee DLM | 9.90x | 1.36x | 25.75% | 0.10 | — |
| Trans India | 259.13x | 0.63x | 8.87% | 0.19 | — |
Manugraph India's loss-making status prevents meaningful P/E ratio comparison, whilst its price-to-book ratio of 0.90x suggests the market values the company below its stated book value—a reflection of scepticism about the quality and realisability of its assets. The company's debt-to-equity ratio of 0.01 is amongst the lowest in the peer group, which provides financial flexibility but also indicates limited access to or appetite for leverage, potentially constraining growth investments.
Valuation Analysis: Below Book Value for Good Reason
At the current market price of ₹17.45, Manugraph India trades at a price-to-book ratio of 0.90x, representing a 10% discount to its stated book value per share of ₹32.60. This below-book valuation typically signals market concerns about either asset quality or the sustainability of the business model. In Manugraph India's case, both factors appear relevant given the persistent operational losses and uncertain earnings outlook.
The company's EV/EBITDA multiple of 47.71x and EV/EBIT multiple of 53.43x appear elevated, but these metrics are distorted by the low absolute values of EBITDA and EBIT due to operational losses. The EV/Sales ratio of 0.67x provides a more meaningful valuation benchmark, suggesting the enterprise is valued at approximately two-thirds of its annual revenue—a reasonable multiple for a loss-making business with uncertain turnaround prospects.
The company's overall valuation grade is classified as "Risky," which appropriately reflects the elevated uncertainty around future earnings and cash flows. The valuation has been in the "Risky" category since April 2023, with historical fluctuations between "Risky" and "Does Not Qualify" categories highlighting the market's ongoing concerns about fundamental business quality.
Shareholding Pattern: Stable Promoter Base, Minimal Institutional Interest
Promoter holding in Manugraph India has remained rock-solid at 57.67% across the last five quarters through December 2025, indicating strong commitment from the founding family. The promoter group is led by Multigraph Machinery Co Pvt. Ltd. (19.74%), Pradeep Sanat Shah HUF (13.67%), and Sanjay Sanat Shah HUF (12.38%), with various members of the Shah family holding the remaining stakes. Positively, there is no promoter pledging, eliminating concerns about financial stress at the promoter level.
| Quarter | Promoter % | FII % | MF % | Insurance % | Other DII % | Public % |
|---|---|---|---|---|---|---|
| Dec'25 | 57.67% | 0.00% | 0.00% | 0.66% | 1.11% | 40.56% |
| Sep'25 | 57.67% | 0.00% | 0.00% | 0.66% | 1.11% | 40.56% |
| Jun'25 | 57.67% | 0.00% | 0.00% | 0.66% | 1.11% | 40.56% |
| Mar'25 | 57.67% | 0.00% | 0.00% | 0.72% | 1.11% | 40.50% |
| Dec'24 | 57.67% | 0.00% | 0.00% | 0.72% | 1.11% | 40.50% |
However, the shareholding pattern reveals a glaring absence of institutional confidence. Foreign institutional investors (FIIs) and mutual funds have zero exposure to the stock, whilst insurance companies hold a minimal 0.66% stake (down from 0.72% in March 2025). Other domestic institutional investors (DIIs) maintain a stable 1.11% holding. Total institutional holding of just 1.77% is extraordinarily low and reflects the investment community's reluctance to commit capital to a loss-making business with uncertain turnaround prospects. The non-institutional public holding of 40.56% is dominated by retail investors, who typically have less rigorous due diligence processes and higher risk tolerance.
Stock Performance: Severe Underperformance Across All Timeframes
Manugraph India's stock performance has been dismal across virtually all meaningful timeframes, with the company significantly underperforming both the Sensex and its industrial manufacturing sector peers. Whilst the stock has shown recent strength with an 11.64% gain on February 10, 2026, and an 18.31% surge over the past week, these short-term movements should be viewed in the context of severe long-term value destruction.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | +11.64% | +0.25% | +11.39% |
| 1 Week | +18.31% | +0.64% | +17.67% |
| 1 Month | +7.38% | +0.83% | +6.55% |
| 3 Month | -12.75% | +0.88% | -13.63% |
| 6 Month | -7.67% | +5.53% | -13.20% |
| YTD | +4.80% | -1.11% | +5.91% |
| 1 Year | -2.51% | +9.01% | -11.52% |
| 2 Years | -38.66% | +17.71% | -56.37% |
| 3 Years | -9.59% | +38.88% | -48.47% |
| 5 Years | +40.61% | +64.25% | -23.64% |
| 10 Years | -63.49% | +254.70% | -318.19% |
Over the past year, the stock has declined 2.51% whilst the Sensex gained 9.01%, resulting in negative alpha of -11.52%. The two-year performance is particularly alarming, with the stock down 38.66% against a Sensex gain of 17.71%—a staggering underperformance of 56.37 percentage points. The ten-year performance is catastrophic, with the stock declining 63.49% whilst the Sensex surged 254.70%, representing negative alpha of -318.19 percentage points.
The stock's high beta of 1.50 indicates significantly greater volatility than the broader market, amplifying both gains and losses. With an annual volatility of 57.92% compared to the Sensex's 11.54%, Manugraph India falls squarely into the "High Risk Low Return" category based on risk-adjusted metrics. The negative Sharpe ratio confirms that the stock has failed to generate returns commensurate with its elevated risk profile.
Technical Analysis: Mildly Bearish Trend with Resistance Ahead
From a technical perspective, Manugraph India's current trend is classified as "Mildly Bearish," having changed from "Bearish" on February 10, 2026, at ₹15.63. The stock trades below all key moving averages, including the 5-day MA (₹15.31), 20-day MA (₹15.25), 50-day MA (₹15.84), 100-day MA (₹18.76), and 200-day MA (₹19.40), indicating persistent selling pressure and lack of sustained buying interest.
The stock faces immediate resistance at the 20-day moving average of ₹15.25, which it has briefly pierced on the recent rally. Major resistance exists at the 100-day MA of ₹18.76 and strong resistance at the 200-day MA of ₹19.40. The 52-week high of ₹25.69 represents a distant target, requiring a 47.19% rally from current levels. On the downside, immediate support sits at the 52-week low of ₹13.30, just 23.91% below current levels.
Technical indicators present mixed signals. The MACD shows "Mildly Bullish" on the weekly timeframe but "Bearish" on the monthly, whilst Bollinger Bands indicate "Mildly Bearish" on both timeframes. The KST indicator is "Bearish" on both weekly and monthly charts, suggesting weakening momentum. The On-Balance Volume (OBV) shows "No Trend," indicating that volume has not confirmed recent price movements.
Investment Thesis: Fundamental Weaknesses Outweigh Near-Term Positives
The investment thesis for Manugraph India is fundamentally challenged by persistent operational losses, weak return ratios, and a business model that has failed to demonstrate sustainable profitability despite periods of strong revenue growth. The company's Mojo score of 28 out of 100 places it firmly in "Strong Sell" territory, with the current advisory rating of "Sell" (recently downgraded from "Hold" in November 2025).
The company's quality assessment of "Below Average" reflects weak long-term financial performance characterised by negative average ROCE of -14.39%, minimal five-year sales growth of 2.30%, and weak interest coverage with average EBIT to interest of -5.23x. Whilst the company benefits from zero promoter pledging and low leverage, these positives are insufficient to offset fundamental operational weaknesses.
Key Strengths & Risk Factors
KEY STRENGTHS
- Market Leadership Position: Largest manufacturer of single-width web-offset printing presses in India with significant global market share
- Recent Revenue Growth: Strong top-line expansion with Q2 FY26 sales up 175.98% YoY, demonstrating order book improvement
- Nine-Month Profitability: Positive PAT of ₹4.89 crores for 9M FY26 marks a turnaround from historical losses
- Zero Financial Leverage: No long-term debt provides financial flexibility and eliminates interest burden concerns
- Stable Promoter Holding: Consistent 57.67% promoter stake with zero pledging indicates management commitment
- Improving Liquidity: Cash and cash equivalents at ₹5.64 crores (H1 FY26 highest) provides operational cushion
- In-House R&D: Government-recognised R&D facilities support product development and technological advancement
KEY CONCERNS
- Chronic Operational Losses: Negative operating margins for six consecutive years, with FY23 at -17.70%, indicating structural inefficiency
- Weak Return Ratios: ROE of -1.70% and average ROCE of -14.39% demonstrate value destruction rather than creation
- High Revenue Volatility: Extreme quarterly fluctuations reflect lumpy order book and execution risks in capital equipment business
- Declining Industry Dynamics: Secular shift to digital media pressures traditional printing press demand
- Minimal Institutional Interest: Just 1.77% institutional holding reflects professional investors' lack of confidence
- Severe Long-Term Underperformance: Stock down 63.49% over 10 years vs. Sensex gain of 254.70%
- High Volatility Profile: Beta of 1.50 and volatility of 57.92% creates elevated risk without commensurate returns
Outlook: What to Watch
POSITIVE CATALYSTS
- Sustained quarterly profitability beyond nine-month period demonstrating business model viability
- Operating margin improvement towards positive territory (currently -17.70% in FY23)
- Consistent order book growth leading to less volatile revenue trajectory
- ROE improvement above 10% indicating effective capital deployment
- Institutional investor participation signalling confidence in turnaround story
RED FLAGS
- Return to quarterly losses after nine-month profitability indicating unsustainable improvement
- Further deterioration in operating margins below -20% threshold
- Sharp revenue decline (>30% QoQ) reflecting order book weakness
- Increase in debt levels to fund operations due to negative cash flows
- Promoter stake reduction or introduction of pledging indicating financial stress
The Verdict: Avoid Despite Near-Term Improvements
Score: 28/100
For Fresh Investors: Avoid initiating positions. Whilst the company has shown encouraging nine-month profitability and strong revenue growth, the persistent operational losses, negative return ratios, and structural challenges in the printing press industry present unacceptable risks. The stock's severe long-term underperformance and minimal institutional interest reflect fundamental concerns that outweigh near-term positives.
For Existing Holders: Consider exiting positions on strength. The recent rally provides an opportunity to exit a fundamentally weak business. Whilst the nine-month turnaround is encouraging, the company must demonstrate sustained profitability across multiple quarters and achieve positive operating margins before warranting a hold recommendation. The risk-reward profile remains unfavourable.
Rationale: Manugraph India's chronic operational inefficiency, evidenced by six consecutive years of negative operating margins and an average ROCE of -14.39%, represents a fundamental structural problem that cannot be ignored. Despite recent revenue improvements and nine-month profitability, the company has consistently failed to convert top-line growth into sustainable bottom-line performance. The stock's classification as "High Risk Low Return" with severe long-term underperformance, combined with minimal institutional confidence (1.77% holding), makes it unsuitable for most investment portfolios. Only highly speculative investors with deep understanding of the printing press industry and appetite for significant volatility should consider exposure.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. The views expressed are those of the author and do not constitute recommendations to buy, sell, or hold any securities mentioned.
