Mahamaya Steel Industries Ltd. (MAHASTEEL) AI Stock Analysis

• Market Cap: ₹15.66B
• Dividend Yield: N/A
• Average Volume (3M): 5.39K
• Price to Earnings (P/E): 215.6
• Beta (1Y): >-0.01
• Revenue Growth: 11.83%
• EPS Growth: 124.74%
• Country: IN
• Employees: 462
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.16
• Shares Outstanding: 16,434,400
• 10 Day Avg. Volume: 9,525
• 30 Day Avg. Volume: 5,388
• PEG Ratio: 4.34
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -1.27K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹952.00 ▼(-7.37% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is supported primarily by solid underlying financial performance (revenue growth, improving gross margin, stable operating margins) and a strong trend above major moving averages. It is held back by extremely high valuation (P/E 215.61) and overbought technical conditions (RSI 80.46, Stoch 95.13), which raise downside risk in the near term.

Positive Factors

Consistent revenue growth

Sustained revenue growth over multiple years indicates expanding end-market penetration and demand stability. A reliable top‑line trend supports long‑term capacity planning and amortizes fixed costs, underpinning durable operational scalability and future margin improvement.

Improving gross and stable operating margins

Marked improvement in gross margins alongside stable EBIT/EBITDA margins points to effective cost management and operational discipline. Durable margin stability reduces earnings volatility and supports reinvestment capacity even in cyclical steel markets.

Improving leverage and positive operating cash flow

A declining debt-to-equity ratio together with consistent positive operating cash flow strengthens financial flexibility. This combination lowers refinancing risk and provides a dependable internal source to fund maintenance capex and moderate growth without overreliance on external capital.

Negative Factors

Low net profit margin

Persistently low net margins constrain value retention from revenue and leave limited room to absorb commodity price swings or input cost inflation. Over the medium term this can restrict retained earnings accumulation and limit capacity to self‑fund strategic investments.

Erratic free cash flow

Volatile free cash flow driven by capex swings creates uncertainty around the company’s ability to consistently fund debt reduction, dividends or expansion. Structural capex variability increases reliance on external financing when cash flow troughs recur.

Need for further debt reduction and asset utilization gains

Although leverage has improved, the balance sheet still requires additional deleveraging and better asset turnover to boost returns. Without further progress, capital efficiency and resilience against sector cyclicality remain constrained over the medium term.

Mahamaya Steel Industries Ltd. Business Overview & Revenue Model

Company Description

Mahamaya Steel Industries Limited manufactures and sells structural steel products in India. The company provides angles, H-beams, joists, channels, billets, blooms, rounds, flats, railway sleepers, strips, girders, etc. It serves construction, automobile, railway, and power industries. The company was formerly known as Rajesh Strips Limited and changed its name to Mahamaya Steel Industries Limited in 2009. Mahamaya Steel Industries Limited was incorporated in 1988 and is based in Raipur, India.

How the Company Makes Money

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Mahamaya Steel Industries Ltd. Financial Statement Overview

Summary

Income statement strength (78) reflects consistent revenue growth and improved gross margin with stable EBIT/EBITDA margins, but net profit margin remains low. Balance sheet (67) shows improving leverage and ROE, though further debt reduction and asset utilization gains would help. Cash flow (72) has positive operating cash flow but inconsistent free cash flow due to capex fluctuations.

Income Statement

Mahamaya Steel Industries Ltd. has shown consistent revenue growth over the years, with a notable increase from 2021 to 2025. The gross profit margin improved significantly from 2023 to 2025, indicating better cost management. The EBIT and EBITDA margins are stable, showing operational efficiency. However, net profit margin remains relatively low, suggesting potential areas for improvement in managing expenses.

Balance Sheet

The company's debt-to-equity ratio has decreased over time, indicating improved financial leverage. The return on equity has improved due to increased net income. However, the equity ratio indicates that a significant portion of assets is financed by equity, which is typical for the steel industry. Continued focus on reducing debt and enhancing asset utilization can strengthen the balance sheet further.

Cash Flow

Operating cash flow has been positive, but free cash flow has shown fluctuations, with negative values in some years. The operating cash flow to net income ratio is healthy, indicating efficient cash generation from operations. Focus on stabilizing free cash flow through better capital expenditure management would enhance cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.32B	8.02B	7.82B	6.50B	4.93B	2.50B
Gross Profit	1.26B	1.50B	309.60M	184.87M	287.21M	202.11M
EBITDA	214.12M	218.06M	205.90M	165.13M	172.27M	131.00M
Net Income	90.28M	76.01M	67.17M	54.43M	48.96M	8.78M
Balance Sheet
Total Assets	2.62B	2.44B	2.33B	2.25B	2.05B	2.24B
Cash, Cash Equivalents and Short-Term Investments	6.42M	18.47M	16.07M	4.66M	170.65M	43.65M
Total Debt	615.99M	460.32M	408.43M	432.16M	452.91M	810.01M
Total Liabilities	1.09B	951.20M	918.61M	904.53M	765.00M	1.13B
Stockholders Equity	1.53B	1.49B	1.41B	1.34B	1.29B	1.11B
Cash Flow
Free Cash Flow	-88.05M	-3.35M	51.48M	-94.40M	390.84M	-68.03M
Operating Cash Flow	-36.62M	88.46M	142.79M	17.71M	440.14M	-42.15M
Investing Cash Flow	-98.67M	-108.21M	-56.30M	-112.39M	-50.58M	5.31M
Financing Cash Flow	132.19M	13.04M	-75.18M	-52.78M	-262.62M	53.22M

Mahamaya Steel Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1027.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MAHASTEEL, the sentiment is Positive. The current price of 1027.7 is above the 20-day moving average (MA) of 858.85, above the 50-day MA of 813.41, and above the 200-day MA of 590.79, indicating a bullish trend. The MACD of 45.78 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 55.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MAHASTEEL.

Mahamaya Steel Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANAKSTEEL	64 Neutral	₹3.39B	11.94	―	―	49.22%	49.59%
TIRUPATIFL	63 Neutral	₹5.83B	52.14	―	―	-0.94%	-48.46%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MAHASTEEL	61 Neutral	₹15.66B	215.61	―	―	11.83%	124.74%
SALSTEEL	57 Neutral	₹3.81B	15.95	―	―	0.19%	-2962.74%
SHAHALLOYS	52 Neutral	₹1.21B	0.90	―	―	-76.23%	―
JINDALPHOT	49 Neutral	₹11.83B	-3.29	―	―	―	―