Post quarterly results announcement, buyers saw a huge opportunity in this aluminium company stock
The stock recorded 179 per cent QOQ net profit growth in the FY23 September quarter results.
Shares of Maan Aluminium Limited opened at Rs 195 and hit a high of Rs 213. As of writing, on BSE the stock is trading at Rs 199.75 which is approximately a 13 per cent rise from the previous closing. The stock saw a spurt in volumes by 3.67 times. Currently, the stock is trading at a PE multiple of 9.54 times with a market cap of Rs 269.21 crore.
Maan Aluminium Limited was incorporated in 1989, it is engaged in the business of manufacturing & trading aluminium profiles, aluminium ingots, aluminium billets etc. and other related activities. Maan is a standalone dealer of aluminium ingots and billets for Hindalco Industries Ltd for North and South India. The company is also involved in the scrap trade for non-ferrous metals. They trade in Taint Tabor, Tread, Talk, Twitch, Tense and Zorba.
The company continues to work towards strengthening domestic order books and improving the international order book going forward. In FY21, the top 2 suppliers contributed to nearly 72 per cent of MAL’s raw material procurement for the year as against 78 per cent in FY20. However, these suppliers are large reputed companies with an established track record of supplying to MAL which mitigates the risk of supply disruption.
For FY22, the company's topline was Rs 572 crore. When the financial results for Q2 FY23 were released, investors recognised a fantastic opportunity to invest in the stock. The company's top line climbed by 19 per cent QoQ yearly and 9 per cent on a quarter-by-quarter basis. As a result of the operational profit margin increasing to 9 per cent in the FY23 Q2, the EBITDA saw a massive increase of 139 per cent. A net profit of Rs 13 crore was up by 179 per cent for the company in the second quarter of FY23. The average return on equity and capital employed are respectively 29.6 per cent and 24.1 per cent. The company's debt-to-equity ratio is 0.8 times. It generated Rs 15 crore of cash from its operations in FY22.