Mahamaya Steel Industries Ltd (MAHASTEEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aeroflex Enter.

Ratnaveer Precis

Vardhman Special

JTL Industries

Rhetan TMT Ltd

Bharat Wire

Mahamaya Steel

Rajputana Stain.

MSP Steel & Pow.

Steel Exchange

Hi-Tech Pipes

Why is Mahamaya Steel Industries Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.57%

Poor long term growth as Operating profit has grown by an annual rate 15.89% of over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 7.97%
PBT LESS OI(Q) At Rs 4.43 cr has Grown at 46.7% (vs previous 4Q average)
PAT(Q) At Rs 4.07 cr has Grown at 56.1% (vs previous 4Q average)

With ROCE of 6.8, it has a Very Expensive valuation with a 8.2 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 194.65%, its profits have risen by 24% ; the PEG ratio of the company is 7.9

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mahamaya Steel should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mahamaya Steel for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Mahamaya Steel

194.65%

4.10

47.53%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.61%

EBIT Growth (5y)

15.89%

EBIT to Interest (avg)

2.36

Debt to EBITDA (avg)

2.85

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

3.65

Tax Ratio

25.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

5.59%

ROE (avg)

4.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

190

Industry P/E

Price to Book Value

10.88

EV to EBIT

120.28

EV to EBITDA

75.44

EV to Capital Employed

8.24

EV to Sales

2.02

PEG Ratio

7.91

Dividend Yield

ROCE (Latest)

6.85%

ROE (Latest)

5.73%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

PAT(9M)

At Rs 7.82 cr has Grown at 20.97%

ROCE(HY)

Highest at 7.97%

PBT LESS OI(Q)

At Rs 4.43 cr has Grown at 46.7% (vs previous 4Q average

NET SALES(Q)

At Rs 263.12 cr has Grown at 23.0% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 7.84 cr.

-2What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.12 cr

Loading Valuation Snapshot...

Here's what is working for Mahamaya Steel

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 4.43 cr has Grown at 46.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3.02 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 4.07 cr has Grown at 56.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2.61 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 263.12 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 263.12 cr has Grown at 23.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 213.98 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 7.84 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for Mahamaya Steel

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.12 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 1.24 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income