Business
Finance
Investing
International business
Renewable Energy
manufacturing
Manufacturing Industry
(1/17)
MAL, established in 1985, manufactures ferroalloys such as ferro manganese, ferro silicon, and silico manganese, with varying proportions of other chemical compositions. It also has three windmills, of 3.75 megawatt power, which is sold to state electricity boards.
MAL, established in 1985, manufactures ferroalloys such as ferro manganese, ferro silicon, and silico manganese, with varying proportions of other chemical compositions. It also has three windmills, of 3.75 megawatt power, which is sold to state electricity boards.
(2/17)
It is India’s largest Manganese
Alloy Producer and Exporter.
The company has International clients across 35 countries, thus,
a Low Concentration Risk as exposure to no client is more than 10% of its exports.
The focus now is on emerging Asian economies.
It is India’s largest Manganese
Alloy Producer and Exporter.
The company has International clients across 35 countries, thus,
a Low Concentration Risk as exposure to no client is more than 10% of its exports.
The focus now is on emerging Asian economies.
(3/17)
Indian Steel Industry:
• India is the 2nd largest steel producer in the world. And ranks 4th globally in terms of iron ore production.
• The govt allowed 100% FDI inflow in the mining and exploration of metal and non metal ores.
Indian Steel Industry:
• India is the 2nd largest steel producer in the world. And ranks 4th globally in terms of iron ore production.
• The govt allowed 100% FDI inflow in the mining and exploration of metal and non metal ores.
(4/17)
Few Big Clients of Maithan Alloys:
• Jindal Stainless
• JSW
• SAIL
• TATA Steel
• POSCO
• Nippon Steel
• Qatar Steel
Few Big Clients of Maithan Alloys:
• Jindal Stainless
• JSW
• SAIL
• TATA Steel
• POSCO
• Nippon Steel
• Qatar Steel
(5/17)
FY22 numbers:
• Revenue Growth: 85% YoY
• EBITDA : 46% CAGR since 2014
• PAT : 71% CAGR since 2014
• Operating RoCE : 89.7%
• Price to sales: 0.83
• Total Debt: ₹5.2 Crores
FY22 numbers:
• Revenue Growth: 85% YoY
• EBITDA : 46% CAGR since 2014
• PAT : 71% CAGR since 2014
• Operating RoCE : 89.7%
• Price to sales: 0.83
• Total Debt: ₹5.2 Crores
(6/17)
Strengths:
• Established market position
MAL is one of the largest domestic producers of manganese-based ferroalloys, with installed capacity of 2,35,600 tonne per annum (TPA), and holds around 7% of the installed manganese-based ferroalloy capacity in India.
Strengths:
• Established market position
MAL is one of the largest domestic producers of manganese-based ferroalloys, with installed capacity of 2,35,600 tonne per annum (TPA), and holds around 7% of the installed manganese-based ferroalloy capacity in India.
(7/17)
• The largest in the country:
With acquisition of IMFAL, having capacity of 49,500 MTPA (million TPA) in fiscal 2022, MAL has become the largest manganese alloy manufacturer in India.
• The largest in the country:
With acquisition of IMFAL, having capacity of 49,500 MTPA (million TPA) in fiscal 2022, MAL has become the largest manganese alloy manufacturer in India.
(8/17)
• Operating Efficiency:
Operating efficiency has been healthy, supported by strong product mix, efficient power and raw material consumption, presence of manufacturing units at multiple locations for production efficiency, & prudent working capital management.
• Operating Efficiency:
Operating efficiency has been healthy, supported by strong product mix, efficient power and raw material consumption, presence of manufacturing units at multiple locations for production efficiency, & prudent working capital management.
(9/17)
Risk Management:
Risk management policies are sound. Realisations are largely secured by letter of credit-backed sales to new customers or entities with weak credit risk profiles; open credit is only allowed to strong entities such as SAIL or JSW
Risk Management:
Risk management policies are sound. Realisations are largely secured by letter of credit-backed sales to new customers or entities with weak credit risk profiles; open credit is only allowed to strong entities such as SAIL or JSW
(10/17)
• Growth oriented:
The company is actively working towards expanding into developing economies as the growth is almost 3 times that of USA and Europe.
The focus is on the emerging economies of Asia. This coupled with a stable developed market should bode well for MAL
• Growth oriented:
The company is actively working towards expanding into developing economies as the growth is almost 3 times that of USA and Europe.
The focus is on the emerging economies of Asia. This coupled with a stable developed market should bode well for MAL
(11/17)
Market Share -
MAL holds around 7% of the installed manganese-based ferroalloy capacity in India.
It accounts for roughly 1% of the global manganese alloys supply.
Market Share -
MAL holds around 7% of the installed manganese-based ferroalloy capacity in India.
It accounts for roughly 1% of the global manganese alloys supply.
(12/17)
Products of MAL:
• Ferro Manganese: Used in flat steel, manganese-rich steel and
stainless-steel manufacturing
• Ferro Silicon: Used in special steels and in small quantities in mild steel
• Silicon Manganese: Consumed in all steel products.
Products of MAL:
• Ferro Manganese: Used in flat steel, manganese-rich steel and
stainless-steel manufacturing
• Ferro Silicon: Used in special steels and in small quantities in mild steel
• Silicon Manganese: Consumed in all steel products.
(13/17)
Weakness:
• Cyclicality:
Ferroalloys are intermediates for the steel industry. Hence, it is linked to the fortunes of the steel industry, which is inherently cyclical, (downswing during FY09 & FY16, resulting in a sharp fall in the demand for, & prices of, ferroalloy.
Weakness:
• Cyclicality:
Ferroalloys are intermediates for the steel industry. Hence, it is linked to the fortunes of the steel industry, which is inherently cyclical, (downswing during FY09 & FY16, resulting in a sharp fall in the demand for, & prices of, ferroalloy.
(14/17)
• RM prices:
OPM remains vulnerable to fluctuations in RM prices as well as realisations of finished goods. Cost & supply of manganese ore directly impacts the revenue as any sharp change in RM price with no similar change in realisations can deeply dent profits.
• RM prices:
OPM remains vulnerable to fluctuations in RM prices as well as realisations of finished goods. Cost & supply of manganese ore directly impacts the revenue as any sharp change in RM price with no similar change in realisations can deeply dent profits.
(15/17)
Shareholding Pattern:
• Promoters: 74.99%
• FIIs: 2.54%
• DIIs: 0.62%
• Public: 21.86%
Shareholding Pattern:
• Promoters: 74.99%
• FIIs: 2.54%
• DIIs: 0.62%
• Public: 21.86%
(16/17)
MAL has an established position in the manganese alloy industry and robust operating efficiency.
However it is partially offset by exposure to volatility in RM prices, and cyclical demand for ferroalloys.
MAL has an established position in the manganese alloy industry and robust operating efficiency.
However it is partially offset by exposure to volatility in RM prices, and cyclical demand for ferroalloys.
(17/17)
With warnings of a global recession incoming this fiscal, is MAL heading for a bleak year ahead?
@caniravkaria @kuttrapali26 @aparanjape @PAlearner
With warnings of a global recession incoming this fiscal, is MAL heading for a bleak year ahead?
@caniravkaria @kuttrapali26 @aparanjape @PAlearner
Loading suggestions...