Mishra Dhatu Nigam Ltd. (MIDHANI) AI Stock Analysis

• Market Cap: ₹59.04B
• Dividend Yield: 0.24%
• Average Volume (3M): 36.69K
• Price to Earnings (P/E): 58.0
• Beta (1Y): 1.91
• Revenue Growth: -5.01%
• EPS Growth: 21.97%
• Country: IN
• Employees: 770
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.48
• Shares Outstanding: 187,340,000
• 10 Day Avg. Volume: 28,823
• 30 Day Avg. Volume: 36,689
• PEG Ratio: 2.33
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 4.96
• P/FCF Ratio: 40.21
• 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: ₹425.00
• Price Target Upside: 19.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.5
• Revenue Forecast (FY): ₹11.81B

• Rating: 55 Neutral
• Price Target: ₹316.00 ▼(-11.34% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

The overall stock score of 55 reflects a combination of strong financial stability and growth potential, offset by bearish technical indicators and high valuation concerns. The company's solid balance sheet and improved cash flow management are positive, but declining net profit margins and overvaluation pose risks. The technical analysis suggests caution due to the current downtrend and oversold conditions.

Positive Factors

Balance Sheet Strength

A conservative capital structure with D/E ~0.25 and a healthy equity ratio provides lasting financial flexibility. This reduces refinancing risk, supports funding of certified production lines for strategic alloys, and underpins resilience through multi-year defence and aerospace programs.

High Gross Margins & Stable Revenue

Sustained gross margins above 40% signal durable pricing power from specialized metallurgy and value-added processing. Modest, steady top-line growth shows ongoing contract wins and baseline demand, supporting margin conversion and investment in qualification for higher-value alloys.

Strategic Market Position

As a domestically anchored, government-owned supplier of certified specialty metals, the company benefits from high entry barriers, long qualification cycles, and strategic procurement priorities. This creates durable demand and lowers competitive risk for certified alloy supplies.

Negative Factors

Margin Volatility / Profitability Pressure

Reported margin shifts and fluctuating EBIT/EBITDA indicate operating volatility. For a specialty supplier, margin erosion can reflect higher input/energy costs or pricing pressure on processed forms, threatening sustainable profitability and cash available for reinvestment in capacity or qualifications.

Cash Conversion Efficiency

FCF improving yet still under one times net income implies limited cash conversion. Over the medium term, sub-par conversion constrains capital allocation for capacity upgrades and qualification processes, and reduces buffer against program timing variability in defence/aerospace orders.

Program & Customer Concentration Risk

Heavy reliance on defence/aerospace programs creates lumpy, contract-driven revenue and exposure to procurement cycles and long qualification timetables. Loss or delay of a major program or slow approvals can materially affect volumes and utilization over several quarters.

Mishra Dhatu Nigam Ltd. Business Overview & Revenue Model

Company Description

Mishra Dhatu Nigam Limited manufactures and sells super alloys, titanium, special purpose steel, and other special metals in India. The company provides special steels, including high strength special steel, austenitic steel, armour steel, maraging steel, and precipitation hardening martensitic stainless steel for aero and defense applications; and nickel base, iron base, and cobalt base super alloys used in aeronautics, space, nuclear, chemical, petrochemical, power generation, and furnace industries. It also offers titanium and titanium alloys, soft magnetic, controlled expansion alloys, heat resistance alloys, special purpose alloys, refractory metals, and other alloys; bars, bright bars, and wire/fine wire; and hot and cold rolled sheets, and strip, as well as open die forging products. The company offers special weld consumables, fasteners, biomedical implants, and armour products. Mishra Dhatu Nigam Limited was founded in 1973 and is based in Hyderabad, India.

How the Company Makes Money

MIDHANI makes money mainly by manufacturing and selling specialty metals and alloy products and by providing associated value-added processing for customers that require certified, high-performance materials. Its core revenue stream is the sale of finished and semi-finished alloy products (e.g., specialty steels, titanium/titanium alloys, and superalloys) supplied to customers in strategic sectors—especially defence and aerospace/space—where stringent specifications, traceability, and qualification requirements create demand for domestically produced materials. A second revenue stream comes from value-added services and downstream processing that convert metal into customer-ready forms (such as forged/rolled products, bars, plates, sheets, or other processed forms) and from supplying consumables or materials tailored to specific end-use applications, where applicable. Earnings are influenced by (i) the company’s ability to win and execute supply orders aligned with defence and aerospace/space programs, (ii) qualification/approval status with key users and integrators that specify material standards, (iii) product mix and realization (higher value alloys and more processed forms typically command higher pricing), (iv) capacity utilization and yield in melting/refining/processing operations, and (v) raw material and energy costs that affect margins. Specific details on named partnerships, customer concentration, or segment-wise revenue breakdowns are null.

Mishra Dhatu Nigam Ltd. Financial Statement Overview

Summary

Mishra Dhatu Nigam Ltd. shows robust revenue growth and effective cost control, contributing to strong gross margins. However, declining net profit margins indicate challenges in sustaining profitability. The balance sheet is solid, characterized by low leverage and healthy equity, providing financial stability. Cash flow management has improved, but further enhancement in cash flow efficiency is needed to bolster financial resilience.

Income Statement

Mishra Dhatu Nigam Ltd. demonstrated stable revenue growth with a 2.9% increase from 2023 to 2024 and a further 0.13% increase in 2025. Gross profit margin for 2025 stands at 40.7%, indicating effective cost management. However, the net profit margin declined to 10.3% in 2025 from 8.6% in 2024, reflecting challenges in maintaining profitability. EBIT and EBITDA margins also showed fluctuations, suggesting volatility in operating efficiency.

Balance Sheet

The company's balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.25 in 2025, indicating conservative financial leverage. The equity ratio remains healthy at 48.5%, providing a solid buffer against liabilities. Return on equity is moderate at 7.8% for 2025, reflecting reasonable returns on shareholders' investments. Overall, the balance sheet shows strength with manageable debt levels and solid equity.

Cash Flow

Free cash flow improved significantly in 2025, suggesting better cash management, with a growth of 4.1% from 2024. The operating cash flow to net income ratio is 1.81, indicating strong cash generation relative to net income. Despite the improvements, free cash flow to net income ratio remains below 1, highlighting room for enhancing cash flow efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.21B	10.74B	10.73B	8.72B	8.59B	8.13B
Gross Profit	5.81B	4.38B	6.06B	6.54B	6.36B	5.66B
EBITDA	2.44B	2.49B	2.25B	2.96B	2.95B	2.66B
Net Income	1.08B	1.11B	917.82M	1.56B	1.77B	1.66B
Balance Sheet
Total Assets	29.50B	29.15B	29.05B	28.63B	27.79B	24.59B
Cash, Cash Equivalents and Short-Term Investments	368.30M	510.18M	164.77M	142.91M	624.77M	938.70M
Total Debt	3.38B	3.50B	4.33B	4.89B	3.60B	1.60B
Total Liabilities	15.08B	15.00B	15.86B	15.77B	15.90B	13.88B
Stockholders Equity	14.42B	14.15B	13.19B	12.85B	11.90B	10.71B
Cash Flow
Free Cash Flow	-196.94M	1.33B	1.36B	-1.08B	-854.82M	166.28M
Operating Cash Flow	100.35M	2.00B	2.16B	-354.12M	51.13M	1.76B
Investing Cash Flow	130.74M	-1.02B	-651.55M	-29.50M	-677.71M	-1.15B
Financing Cash Flow	-233.96M	-1.04B	-1.48B	427.76M	386.64M	-369.24M

Mishra Dhatu Nigam Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 356.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MIDHANI, the sentiment is Negative. The current price of 356.4 is above the 20-day moving average (MA) of 333.60, above the 50-day MA of 347.51, and below the 200-day MA of 373.24, indicating a bearish trend. The MACD of -10.22 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MIDHANI.

Mishra Dhatu Nigam Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	76 Outperform	₹28.55B	13.58	―	1.36%	-0.46%	4.85%
SANDUMA	73 Outperform	₹90.05B	25.50	―	0.18%	196.22%	71.39%
IMFA	68 Neutral	₹66.82B	15.33	―	1.05%	-6.18%	-23.70%
MOIL	67 Neutral	₹59.33B	35.43	―	2.18%	―	―
SUNFLAG	62 Neutral	₹39.28B	20.39	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MIDHANI	55 Neutral	₹59.04B	58.02	―	0.24%	-5.01%	21.97%

Mishra Dhatu Nigam Ltd. Corporate Events

MIDHANI to Meet Investors in Goldman Sachs-Led Group Session

Mishra Dhatu Nigam Limited has informed the stock exchanges that it will participate in a group meeting with investors and analysts organised by Goldman Sachs (India) Securities on March 12, 2026, in Hyderabad. The company emphasized that no unpublished price sensitive information will be discussed, underscoring its adherence to SEBI listing regulations and signalling continued engagement and transparency with the investment community.

The disclosed meeting schedule, which remains subject to change due to possible exigencies, reflects MIDHANI’s efforts to maintain regular dialogue with market participants and potentially strengthen investor confidence. By formally notifying the exchanges under Regulation 30, the company reinforces its commitment to regulatory compliance and structured communication with stakeholders in line with corporate governance norms.