Maan Aluminium Ltd.

Dear members

Glad to post new stock analysis from Metal sector.

Fundamentals are Good, should be in portfolio for long term, I will add slowly 40-50 stocks every month for 12 month in portfolio.

MAAN ALUMINIUM LTD.
Cmp :- 90

(SCRIPT CODE :- MAANALU)

BSE CODE :- 532906

The company is one of the pioneers in the Aluminium extrusion industry in India; its plant in central India was one of the first to be commissioned in the year 1989. In the year 2009, the company was rebranded as Maan Aluminium Ltd.; the new entity now includes trading and manufacturing operations, having industry experience and knowledge of over 32 years.

The company had a humble beginning in manufacturing Aluminium extrusions, in a record time of eleven months commenced commercial operations, and today has the distinction of being one of the nation's largest manufacturers and exporters of Aluminium extruded products from central India.

Today, Maan Aluminium Ltd. is a preferred choice by many companies worldwide. The company is exporting its products globally, and is accredited with One Star export house status.

Maan Aluminium has annual capacity of 9000 tonnes with three hydraulic extrusion presses 900, 1200 and 1450 tonnes. It has a fully integrated plant with a billet casting and dye manufacturing facility. It's i house foundry has two furnaces with a capacity of 5 and 10 tonnes respectively. 

KEY FUNDAMENTALS :- 

STOCK INFO
Market Cap	61.35 Cr
P/E	6.65
52 W High/Low	144/78.50
Face Value	10
EPS	13.64
Book Value	64.64
Price/Book Industry PE Dividend Yield	1.40 17.93 1.10%

SHARE HOLDING PATTERN
Promotors	65.32 %
MF	0 %
DII	0.74 %
Public/NII	33.93 %
TOTAL	100%

FINANCIAL STUDY :-

By Analysing Company's past 5 years result , Company is giving best result every year. 

Revenue is increasing, other income increasing. EBITDA increasing continuously.

Net Profit stood 28 Lakh. in March 2015. While in FY19 company posted 9.2 Cr. of Net Profit. 

We are expecting company can reach 15 Cr.  Net PAT till 2020.

During FY19, its net profit soared 43.61% to Rs.9.22crore from Rs.6.42crore in FY18 on 45.18% higher sales of Rs.651.99crore fetching an EPS of Rs.13.64. Its bottom-line has grown at 140% CAGR over the last four years while top-line has grown at 56% CAGR over the last four years.

Company has reported robust numbers for Q4FY19. During Q4FY19, Maan Aluminium posted 127.36% higher PAT of Rs.2.16crore on 88.63% higher sales of Rs.205.07crore fetching an EPS of Rs.3.20.

It has an equity capital of just Rs.6.76 crore supported by reserves of around Rs.36.94 crore. The promoters hold 65.32% of the equity capital, which leaves 34.68% stake with the investing public.

Equity capital of the company is quite low at 6.76 crores and reserves stand at 33.62 crores

RATIONALE :- 

• Strong Promoter Group. Promoter Holding is also Good. Company has good consistent profit growth of over last 5 years.

• Strong Financials. Consistent Profit Making. 

• Strong Fundamentals

• It is regular dividend paying  
• company and it paid 10% interim dividend for FY19.

• Undervalued compared to its fundamental strength. 

• Over the last few quarters, there has been a steady increase in the net profit of the company.

• Maan Aluminium has expertise in producing designs with more than 10,000 shapes, thereby able to cater to a wide range of customer requirements.
• 
  
• Management is putting efforts in the right direction and the results of the same has started 
• being reflected in numbers.
• 
  
• The per capita consumption of Aluminum in India is just 1.3 kgs compared to the per capita 
• consumption of 20-30 kgs in developed countries. Thus, there is a vast scope for the industry to 
• develop under the current scenario especially with good quality reserves of Bauxite

VERDICT:- 

• Maan Aluminium Ltd. is a debt free and asset light company. 

• Its growth in revenue and profitability has been consistent over the last few years.

• It has been paying out dividends consistently since past many years. 

• Valuation seems to be attractive. 

• Equity capital of the company is quite low, and promoters hold around 65%
• At a market cap of around 63 crores, this is probably the cheapest company in the Aluminium sector. Supportive global metal prices could act as a tailwind for this sector, which could significantly boost the profitability of the company.

• STOCK TIGERS believe this stock should be in your core mid-smallcap portfolio , without seeing it's price till 1-2 years. One year target is 150. Within 2 years stock can show 200 levels. 77 is strong support on closing basis. 

• We will add this stock in every dip whenever stock correct due to market sentiment.

#MULTIBAGGER

Happy Investing

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NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

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