Maan Aluminium Ltd is Rated Hold by MarketsMOJO

Rating Context and Current Standing

On 17 Nov 2025, MarketsMOJO revised Maan Aluminium Ltd’s rating from 'Sell' to 'Hold', reflecting an improvement in the company’s overall assessment. The Mojo Score increased by 8 points, moving from 44 to 52, signalling a moderate enhancement in the stock’s investment appeal. This 'Hold' rating suggests that investors should maintain their current positions, as the stock exhibits a balanced risk-reward profile without strong indications to buy or sell aggressively at this stage.

Here’s How the Stock Looks Today

As of 07 February 2026, Maan Aluminium Ltd operates within the Non-Ferrous Metals sector and is classified as a microcap company. The stock’s recent price movement shows a slight decline of 0.37% on the day, with mixed returns over various time frames: a 1-year return of +33.21%, a 6-month gain of +33.57%, but a negative year-to-date return of -6.92%. These figures indicate some volatility but overall positive momentum over the longer term.

Quality Assessment

The company’s quality grade is assessed as average. Maan Aluminium maintains a low debt-to-equity ratio of 0.49 times, which is favourable and suggests prudent financial leverage. However, the company’s long-term growth has been modest, with operating profit growing at an annualised rate of 12.82% over the past five years. The latest nine-month profit after tax (PAT) figure stands at ₹12.44 crores, reflecting a decline of 21.27% compared to previous periods. This flat to negative earnings trend tempers the quality outlook despite the manageable debt levels.

Valuation Considerations

Maan Aluminium’s valuation grade is considered expensive. The company’s return on capital employed (ROCE) is 7.2%, which is moderate but not compelling given the sector’s competitive landscape. The enterprise value to capital employed ratio stands at 3.7, indicating a relatively high valuation multiple. While the stock trades at a discount compared to its peers’ historical averages, the current valuation reflects cautious investor sentiment amid flat financial results and subdued profit growth.

Financial Trend Analysis

The financial trend for Maan Aluminium is flat, signalling limited improvement or deterioration in recent quarters. Net sales for the latest quarter were ₹191.08 crores, down 9.5% relative to the previous four-quarter average. Inventory turnover ratio for the half-year is low at 12.88 times, suggesting slower inventory movement. These factors contribute to the cautious stance on the company’s near-term financial trajectory.

Technical Outlook

Technically, the stock is mildly bullish. Despite short-term price declines, the stock has outperformed the BSE500 index over the last three years, one year, and three months, demonstrating resilience and market-beating performance. The 3-month return of +7.84% and 1-year return of +33.21% underscore this positive technical momentum, which supports the 'Hold' rating by indicating potential for further gains balanced by existing risks.

Investment Implications of the Hold Rating

The 'Hold' rating from MarketsMOJO implies that investors should neither rush to buy nor sell Maan Aluminium Ltd shares at this time. The stock’s average quality, expensive valuation, flat financial trend, and mildly bullish technicals suggest a neutral stance. Investors are advised to monitor the company’s upcoming quarterly results and sector developments closely, as any significant improvement in profitability or valuation could warrant a reassessment of the rating.

Summary of Key Metrics as of 07 February 2026

• Mojo Score: 52.0 (Hold)
• Market Cap: Microcap
• Debt to Equity Ratio: 0.49 times (low)
• Operating Profit Growth (5-year CAGR): 12.82%
• PAT (9M): ₹12.44 crores, down 21.27%
• Net Sales (Quarterly): ₹191.08 crores, down 9.5%
• Inventory Turnover Ratio (HY): 12.88 times (low)
• ROCE: 7.2%
• Enterprise Value to Capital Employed: 3.7 (expensive)
• Stock Returns: 1Y +33.21%, 6M +33.57%, YTD -6.92%

Sector and Market Positioning

Maan Aluminium Ltd operates in the Non-Ferrous Metals sector, a space characterised by cyclical demand and sensitivity to commodity price fluctuations. The company’s microcap status means it is relatively small compared to larger industry players, which can translate into higher volatility but also potential for growth if operational efficiencies improve. The stock’s recent outperformance relative to the BSE500 index highlights its ability to generate returns despite sector headwinds.

Risks and Considerations for Investors

Investors should be mindful of the company’s flat financial trend and declining profitability in recent periods. The drop in PAT and net sales signals challenges in maintaining growth momentum. Additionally, the expensive valuation metrics suggest that the market may already price in some recovery expectations, limiting upside potential unless earnings improve. The mildly bullish technicals provide some comfort but do not fully offset fundamental concerns.

Outlook and Monitoring

Going forward, close attention should be paid to quarterly earnings updates, changes in operating profit trends, and any shifts in inventory management efficiency. Improvements in these areas could enhance the company’s quality and financial trend grades, potentially leading to a more favourable rating. Conversely, continued flat or negative results may reinforce the current 'Hold' stance or prompt a reassessment.

Conclusion

Maan Aluminium Ltd’s current 'Hold' rating by MarketsMOJO reflects a balanced view of the company’s prospects as of 07 February 2026. While the stock has demonstrated strong returns over the past year and exhibits mild technical strength, its average quality, expensive valuation, and flat financial trend counsel caution. Investors should maintain their positions while monitoring key financial indicators and sector developments to inform future decisions.

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