Why is Permanent Magnets Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 3.09% of over the last 5 years
2
The company declared negative results in Sep'25 after flat results in Jun'25
- PBT LESS OI(Q) At Rs 2.32 cr has Fallen at -69.63%
- PAT(Q) At Rs 2.37 cr has Fallen at -66.6%
- ROCE(HY) Lowest at 10.92%
3
With ROCE of 9.3, it has a Very Expensive valuation with a 4.5 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -1.22%, its profits have fallen by -6.8%
4
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
5
Below par performance in long term as well as near term
- Along with generating -1.22% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Permanent Magnet for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Permanent Magnet
-1.22%
-0.02
54.20%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
15.07%
EBIT Growth (5y)
3.09%
EBIT to Interest (avg)
6.99
Debt to EBITDA (avg)
0.41
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
1.43
Tax Ratio
29.34%
Dividend Payout Ratio
6.81%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
29.26%
ROE (avg)
10.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
60
Industry P/E
31
Price to Book Value
4.84
EV to EBIT
48.19
EV to EBITDA
26.62
EV to Capital Employed
4.49
EV to Sales
3.78
PEG Ratio
NA
Dividend Yield
0.24%
ROCE (Latest)
9.32%
ROE (Latest)
8.06%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-16What is not working for the Company
PBT LESS OI(Q)
At Rs 2.32 cr has Fallen at -69.63%
PAT(Q)
At Rs 2.37 cr has Fallen at -66.6%
ROCE(HY)
Lowest at 10.92%
NET SALES(Q)
At Rs 49.13 cr has Fallen at -12.42%
NON-OPERATING INCOME(Q)
is 37.30 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Permanent Magnet
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.32 cr has Fallen at -69.63%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 2.37 cr has Fallen at -66.6%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 49.13 cr has Fallen at -12.42%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 37.30 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 1.38 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






