Current Rating and Its Significance
The 'Hold' rating assigned to Manaksia Aluminium Company Ltd indicates a neutral stance for investors. It suggests that while the stock is not an immediate buy, it also does not warrant selling at this stage. Investors are advised to maintain their existing positions and monitor the company’s developments closely. This rating reflects a balance between the company’s strengths and challenges as assessed through multiple parameters.
Quality Assessment
As of 14 February 2026, Manaksia Aluminium’s quality grade is considered average. The company demonstrates moderate operational efficiency but faces challenges in profitability. Its Return on Equity (ROE) averages 4.15%, signalling relatively low profitability per unit of shareholders’ funds. Additionally, the company’s ability to service debt remains constrained, with a high Debt to EBITDA ratio of 5.25 times. This elevated leverage indicates financial risk, which investors should factor into their decision-making.
Valuation Perspective
The valuation grade for Manaksia Aluminium is attractive as of today. The stock trades at a discount relative to its peers’ historical valuations, supported by a Return on Capital Employed (ROCE) of 9.8%. The Enterprise Value to Capital Employed ratio stands at a modest 1.2, underscoring the stock’s reasonable pricing in the current market. Furthermore, the company’s Price/Earnings to Growth (PEG) ratio is 1.4, suggesting that the stock’s price reasonably reflects its earnings growth prospects. This valuation appeal is a key factor supporting the 'Hold' rating.
Financial Trend Analysis
Financially, the company’s trend is relatively flat at present. While operating profit has exhibited strong long-term growth, increasing at an annual rate of 49.24%, recent quarterly figures show some softness. Net sales for the latest quarter stand at ₹131.21 crores, reflecting a decline of 6.6% compared to the previous four-quarter average. The Profit Before Depreciation, Interest, and Taxes (PBDIT) for the quarter is at a low ₹10.81 crores, and operating cash flow for the year is modest at ₹0.97 crore. These mixed signals suggest that while the company has growth potential, short-term financial momentum is subdued.
Technical Outlook
From a technical standpoint, the stock exhibits a mildly bullish trend. Over the past year, Manaksia Aluminium has delivered a total return of 20.60%, outperforming many peers in the non-ferrous metals sector. The stock’s year-to-date return is a positive 4.36%, despite recent short-term volatility including a 33.21% decline over the past month. This technical resilience supports the view that the stock may stabilise and potentially offer upside, aligning with the 'Hold' recommendation.
Stock Performance Summary
As of 14 February 2026, the stock’s recent price movements include a 4.98% decline on the day, a 5.43% drop over the past week, and a 2.21% decrease over six months. However, the three-month return is positive at 7.07%, indicating some recovery from recent lows. These fluctuations highlight the stock’s sensitivity to market conditions and sector dynamics, reinforcing the need for cautious investment.
Ownership and Market Capitalisation
Manaksia Aluminium Company Ltd remains a microcap stock within the non-ferrous metals sector. The majority shareholding is held by promoters, which often provides stability in corporate governance and strategic direction. Investors should consider this ownership structure as part of their overall assessment of the company’s prospects.
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What the Hold Rating Means for Investors
For investors, the 'Hold' rating on Manaksia Aluminium suggests maintaining current positions rather than initiating new buys or selling off holdings. The company’s attractive valuation and positive technical signals offer some upside potential, but the average quality and flat financial trends warrant caution. Investors should watch for improvements in debt servicing capacity and quarterly sales performance to reassess the stock’s outlook.
Sector and Market Context
Operating in the non-ferrous metals sector, Manaksia Aluminium faces cyclical industry challenges including commodity price volatility and demand fluctuations. The sector’s performance often correlates with broader economic conditions and infrastructure spending. As such, the company’s future prospects will be influenced by both internal operational improvements and external market dynamics.
Summary of Key Metrics as of 14 February 2026
- Mojo Score: 58.0 (Hold Grade)
- Debt to EBITDA Ratio: 5.25 times (high leverage)
- Return on Equity (avg): 4.15%
- Operating Profit Growth Rate (annual): 49.24%
- Net Sales (latest quarter): ₹131.21 crores, down 6.6%
- PBDIT (latest quarter): ₹10.81 crores
- ROCE: 9.8%
- Enterprise Value to Capital Employed: 1.2
- PEG Ratio: 1.4
- 1-Year Stock Return: +20.60%
In conclusion, Manaksia Aluminium Company Ltd’s current 'Hold' rating reflects a balanced view of its operational strengths and financial challenges. Investors should consider this rating as a signal to monitor the stock closely, with attention to upcoming quarterly results and sector developments that may influence its trajectory.
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