Buyers recognised a tremendous opportunity in this aluminium firm stock after its quarterly results

5paisa Research Team 7th November 2022 - 05:58 pm

In the FY23 September quarter results, the net profit of the company increased by 179% year on year.

Maan Aluminium Limited shares began trading at Rs 195 and reached a high of Rs 213. As of this writing, the stock is trading at Rs 199.75 on the BSE, representing a 13% increase from the previous close. Volumes in the stock increased 3.67 times. With a market capitalisation of Rs 269.21 crore, the company is now trading at a PE multiple of 9.54 times.

Maan Aluminium Limited was founded in 1989 and is involved in the manufacture and trade of aluminium profiles, ingots, billets, and other related products. Maan is Hindalco Industries Ltd's exclusive distributor of aluminium ingots and billets in North and South India. The firm is also active in the nonferrous metal scrap trade. Taint Tabor, Tread, Talk, Twitch, Tense, and Zorba are among the items they sell.

In FY21, the top two suppliers accounted for roughly 72% of MAL's raw material procurement for the year, compared to 78% in FY20. However, these suppliers are huge reputable enterprises with a proven track record of delivering MAL, reducing the chance of supply disruption.

The company's revenue for FY22 was Rs 572 crore. Investors saw a wonderful chance to buy the stock when the financial results for Q2 FY23 were revealed. The company's revenue increased by 19% year over year and 9% quarter over quarter. The operating profit margin increased to 9% in the second quarter of FY23, resulting in a 139% rise in EBITDA. In the second quarter of FY23, the company's net profit increased by 179% to Rs 13 crore. The average return on equity and capital employed is 29.6% and 24.1%, respectively. The debt-to-equity ratio of the corporation is 0.8. In FY22, it produced Rs 15 crore in cash from operations.

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5paisa Research Team

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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