Manaksia Aluminium Company Ltd is Rated Hold

Current Rating Overview

On 06 January 2026, MarketsMOJO revised Manaksia Aluminium Company Ltd’s rating from 'Sell' to 'Hold', reflecting an improvement in the company’s overall assessment. The Mojo Score increased by 18 points, moving from 40 to 58, signalling a more balanced outlook. This 'Hold' rating suggests that while the stock is not currently a strong buy, it offers reasonable value and stability for investors considering exposure to the non-ferrous metals sector.

Understanding the 'Hold' Rating

A 'Hold' rating indicates that the stock is expected to perform in line with the market or sector averages in the near term. Investors are advised to maintain their current positions rather than aggressively buying or selling. This rating reflects a moderate risk-reward profile, where the company shows potential but also faces certain challenges that temper enthusiasm.

Here’s How the Stock Looks Today

As of 26 February 2026, Manaksia Aluminium Company Ltd presents a mixed but cautiously optimistic picture across four key parameters that influence its rating: Quality, Valuation, Financial Trend, and Technicals.

Quality Assessment

The company’s quality grade is assessed as average. This is largely due to its moderate profitability and debt servicing capacity. The Debt to EBITDA ratio stands at a high 5.25 times, indicating a relatively elevated leverage level that could constrain financial flexibility. Additionally, the average Return on Equity (ROE) is 4.15%, which is modest and suggests limited profitability generated per unit of shareholder funds. While these metrics do not raise immediate alarms, they highlight areas where the company’s operational efficiency and capital management could improve.

Valuation Metrics

Valuation is one of the more favourable aspects of Manaksia Aluminium’s current profile. The stock is considered attractively valued, trading at a discount relative to its peers’ historical averages. The Return on Capital Employed (ROCE) is 9.8%, which supports this view, alongside an Enterprise Value to Capital Employed ratio of 1.2. These figures suggest that investors are paying a reasonable price for the company’s capital base and earnings potential. The Price/Earnings to Growth (PEG) ratio stands at 2.4, reflecting moderate expectations for future earnings growth relative to the current price.

Financial Trend

The financial trend for Manaksia Aluminium is currently flat, indicating stable but unspectacular recent performance. Operating profit has grown at an impressive annual rate of 47.02%, signalling strong underlying business momentum. However, the company reported flat results in December 2025, which tempers the growth narrative somewhat. Over the past year, the stock has delivered a market-beating return of 28.67%, significantly outperforming the BSE500 index return of 14.53%. Profit growth over the same period was 12.7%, suggesting that the stock’s price appreciation has outpaced earnings growth, a factor investors should monitor closely.

Technical Analysis

From a technical perspective, the stock is mildly bullish. Recent price movements show some volatility, with a one-month decline of 44.52% offset by a three-month gain of 15.61%. The year-to-date return is a modest 1.77%, and the one-day change as of 26 February 2026 was -0.64%. These fluctuations reflect a stock that is experiencing short-term pressures but retains underlying support, consistent with a 'Hold' stance.

Additional Considerations

Manaksia Aluminium remains a microcap company within the non-ferrous metals sector, with promoters holding the majority of shares. This ownership structure can provide stability but also limits liquidity. Investors should weigh the company’s growth prospects against its leverage and profitability constraints.

Implications for Investors

For investors, the 'Hold' rating on Manaksia Aluminium Company Ltd suggests a cautious approach. The company’s attractive valuation and solid operating profit growth provide a foundation for potential upside. However, the elevated debt levels and modest profitability metrics warrant careful monitoring. Investors currently holding the stock may consider maintaining their positions while watching for improvements in financial leverage and earnings quality. Prospective buyers might wait for clearer signs of sustained financial trend improvement or a more compelling valuation discount before initiating new positions.

Sector and Market Context

Within the non-ferrous metals sector, Manaksia Aluminium’s performance is notable for its market-beating returns over the past year. This sector often experiences cyclical volatility linked to commodity prices and global demand. The company’s flat recent results and mild technical bullishness reflect this environment. Investors should consider broader sector trends and macroeconomic factors when evaluating the stock’s prospects.

Summary

In summary, Manaksia Aluminium Company Ltd’s current 'Hold' rating by MarketsMOJO, updated on 06 January 2026, reflects a balanced view of its strengths and challenges. As of 26 February 2026, the stock offers an attractive valuation and solid growth potential but is tempered by leverage concerns and moderate profitability. This rating advises investors to maintain existing holdings with a watchful eye on financial improvements and market conditions.

Key Metrics as of 26 February 2026

• Mojo Score: 58.0 (Hold)
• Debt to EBITDA Ratio: 5.25 times
• Return on Equity (avg): 4.15%
• Operating Profit Growth (annual): 47.02%
• Return on Capital Employed (ROCE): 9.8%
• Enterprise Value to Capital Employed: 1.2
• PEG Ratio: 2.4
• 1-Year Stock Return: +28.67%
• BSE500 1-Year Return: +14.53%

Investors should continue to monitor quarterly results and sector developments to reassess the stock’s outlook in the coming months.

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