Manaksia Coated Metals Reports Strong Profit Growth Amid Valuation Concerns

Manaksia Coated Metals & Industries, a small-cap player in the Iron & Steel Products sector, has recently undergone an adjustment in evaluation. The company reported very positive financial performance for the quarter ending September 2025, showcasing a notable growth in operating profit at an annual rate of 31.94%. This growth trajectory is underscored by a 2.9% increase in operating profit for the quarter, contributing to the company's strong results over the last two consecutive quarters.
The latest six-month period saw a significant rise in profit after tax (PAT), reaching Rs 27.97 crore, which reflects a remarkable growth rate of 531.30%. Additionally, the operating cash flow for the year peaked at Rs 29.98 crore, while the operating profit to interest ratio stood at a robust 3.16 times, indicating solid financial health.

Despite these positive indicators, the company's valuation appears expensive, with a return on capital employed (ROCE) of 17.5 and an enterprise value to capital employed ratio of 3.9. Furthermore, while the stock has generated a return of 129.20% over the past year, its profits have surged by 180.7%, resulting in a PEG ratio of 0.4. Notably, domestic mutual funds currently hold no stake in the company, which may reflect cautious sentiment regarding its valuation.

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