Every now and then, a certain stock emerges from the maddening crowd of numbers and listings to steal the limelight. This week, it’s the B Group stock, Maan Aluminium Ltd., which has seen a whopping 55.5% surge, rocketing from a previous close of Rs 207.65 to Rs 322.90. This soaring performance begs the question: what is driving this monumental growth?
Digging Into Maan Aluminium Ltd.
Founded in 1989, Maan Aluminium Ltd. is in the business of manufacturing and trading aluminium products such as profiles, ingots, billets, etc. Over the years, it has carved out a unique niche as a standalone dealer of Aluminium ingots and Billets for Hindalco Industries Ltd. for North and South India. Not limiting itself to these, Maan also dabbles in the scrap trade for non-ferrous metals.
In terms of revenue mix, Maan Aluminium Ltd. has a balanced portfolio. Sales of traded goods, including Aluminium Ingots, Billets, Logs, Rods, and Extruded Profiles, account for 59% of revenue. The remaining 41% comes from the sale of finished goods like Aluminium Profiles, Tubes, Rods, and Alloy Billets.
Unveiling Production and Capacity
The company operates a single plant at Pithampur Industrial Area in Madhya Pradesh. Despite its solitary presence, the plant put forth an impressive production of 6960 MT in FY21, taking capacity utilisation to 77%, a notable increase from 71% in FY20. The plant is a fully integrated facility featuring Billet casting and Die manufacturing, and an in-house foundry.
As part of its future growth strategy, the company has been ramping up its marketing efforts to boost sales.
Looking at The Bright Side
The company’s recent stock surge isn’t a matter of chance. It’s backed by a strong history of solid performance and promising prospects. Maan Aluminium Ltd. has a history of robust profit growth, recording a 50.8% CAGR over the last five years. With a commendable 3-year ROE of 36.4%, the company has consistently shown good return on equity. Moreover, the median sales growth stands at 28.0% over the last decade.
The upcoming quarter also looks promising, and the company is expected to report strong results.
Peers in Perspective
When comparing Maan Aluminium Ltd. to its peers in the Aluminium and Aluminium Products industry, it stands its ground firmly. With a current market price of Rs 321.20 and a forward P/E ratio of 0.43, it remains competitive. Notably, the company outshines its peers with a staggering 95.36% increase in the last 52 weeks. Additionally, with an ROE of 46.56%, it leads the pack, far surpassing the industry median.
Quarterly Results Overview
A glance at the quarterly results shows an upward trend. With sales increasing steadily from Rs 99 crore in March 2020 to Rs 263 crore in March 2023, the company has been able to maintain a stable operating profit margin. Net profit too has seen an uptrend, growing from Rs 1 crore in March 2020 to Rs 14 crore in March 2023.
In conclusion, Maan Aluminium Ltd. has demonstrated stellar performance, both in terms of its stock price and its financial performance. The remarkable surge of 55% in just a week is not just a fluke, but the result of strategic planning, solid fundamentals, and promising growth prospects. With its high capacity utilisation, robust profit growth, and impressive return on equity, Maan Aluminium Ltd. is indeed a stock to watch in the non-ferrous metals sector.