Mukand Limited (MUKANDLTD) AI Stock Analysis

• Market Cap: ₹17.05B
• Dividend Yield: 1.5%
• Average Volume (3M): 19.08K
• Price to Earnings (P/E): 47.9
• Beta (1Y): 1.68
• Revenue Growth: -5.63%
• EPS Growth: -34.36%
• Country: IN
• Employees: 1,466
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.71
• Shares Outstanding: 144,495,560
• 10 Day Avg. Volume: 14,554
• 30 Day Avg. Volume: 19,080
• PEG Ratio: -0.67
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 25.41
• 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: 50 Neutral
• Price Target: ₹118.00 ▼(-14.86% Downside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Mukand Limited's overall stock score is primarily influenced by its financial performance and technical analysis. The company's high leverage and revenue volatility are significant concerns, impacting its financial stability. Technical indicators suggest a lack of strong momentum, with bearish signals present. The valuation indicates potential overvaluation, which could deter investors seeking value. Improvements in financial management and strategic initiatives are necessary to enhance the company's market position.

Positive Factors

Diversified business model

Mukand's combined specialty/long-steel manufacturing and engineering/project business provides structural diversification of revenue streams. Over 2-6 months this reduces reliance on a single cyclical end-market, supports steadier order inflows from project-based contracts and allows cross-selling of engineered products.

Improving cash generation

Improved operating cash flow and strong free-cash-flow growth signal better cash conversion and liquidity. Durable cash generation enhances ability to fund working capital, service debt, and invest selectively in capacity or maintenance, lowering refinancing risk and supporting financial flexibility over coming months.

Better gross margins from cost/pricing actions

A sustained improvement in gross margin indicates effective cost controls or improved product pricing mix toward higher-value alloy grades. Higher structural margins improve resilience to input cost swings, support EBITDA expansion opportunities, and create room for reinvestment without relying solely on volume growth.

Negative Factors

High leverage

Persistently high debt levels constrain strategic options and increase interest-servicing pressure. In a cyclical steel industry, leverage raises refinancing and liquidity risk during downturns, limits capacity for large capex or acquisitions, and can force prioritization of debt repayment over growth investments.

Revenue volatility and recent decline

Top-line volatility and the recent revenue drop undermine predictability of utilization and working-capital needs. For a manufacturer with fixed costs, inconsistent demand pressures margins and makes capacity planning, supplier negotiations, and multi-quarter earnings recovery more difficult absent a clear, sustained order-book improvement.

Low net margins and weak EBITDA conversion

Low net margins and weak EBITDA conversion limit retained earnings available for deleveraging or reinvestment. Elevated depreciation/amortization suggests heavy fixed-asset intensity or recent capex; combined with modest operating leverage, this compresses free cash and reduces buffer against cyclical volatility over the medium term.

Mukand Limited Business Overview & Revenue Model

Company Description

Mukand Limited engages in the manufacture and sale of alloy and stainless-steel products in India. It operates through Steel, Industrial Machinery and Engineering Contracts, and Others segments. The Steel segment offers billets, blooms, rounds, wire rods, bars, rods and sections, bright bars, and wires of special and alloy steel and stainless steel. The Industrial Machinery and Engineering Contracts segment provides EOT and gantry cranes, port and shipyard cranes, material handling equipment, steel structural, processing plant and equipment, etc. for ferrous and non-ferrous industries, as well as rolling mills, power, nuclear, and defense applications; and engineering services. The Others segment in involved in road construction, property development, and non-banking financial activities. The company also exports its products to the Unites States of America, Germany, Italy, the Netherlands, Switzerland, the United Arab Emirates, Japan, Korea, Hong Kong, Taiwan, and Vietnam. The company was formerly known as Mukand Iron & Steel Works Limited and changed its name to Mukand Limited in March 1989. Mukand Limited was incorporated in 1937 and is based in Mumbai, India.

How the Company Makes Money

Mukand Limited makes money primarily by manufacturing and selling steel products and by executing engineering and machinery-related orders. Its main revenue stream comes from the sale of specialty/long steel products (e.g., billets, bars and related steel items) to industrial customers and distributors; revenue is recognized based on volumes shipped and realized selling prices, which are influenced by steel and alloy input costs and market demand. A second revenue stream comes from its engineering business, which earns revenue through (i) supplying manufactured capital equipment and machinery, and (ii) executing project-based contracts and services such as design, fabrication, installation, and commissioning; these contracts typically generate revenue based on order inflows, milestones, and delivery/acceptance terms. Earnings are therefore driven by production utilization, product mix (higher-value alloy/specialty grades versus commodity grades), pricing and raw-material cost spreads, and the engineering order book and execution performance. Specific information on major partnerships or named large customers is null.

Mukand Limited Financial Statement Overview

Summary

Mukand Limited shows a mixed financial performance. Revenue volatility and high leverage pose significant challenges. While profitability metrics have improved, they remain below industry standards. The balance sheet shows gradual improvement but is burdened by high debt levels. Cash flow management has improved, but liquidity risks remain due to capital expenditures and financing activities. Strategic financial management is essential to enhance profitability and reduce leverage.

Income Statement

Mukand Limited's revenue has seen fluctuations in recent years, with a noticeable decline in 2025 compared to 2024. The gross profit margin improved significantly in 2025, indicating better cost management or pricing strategy. However, the net profit margin remains low, suggesting persistent profitability challenges. The company's EBIT margin improved in 2025, but EBITDA margin was notably lower than expected, indicating increased depreciation and amortization costs.

Balance Sheet

The company's debt-to-equity ratio has been high, indicating significant leverage and potential financial risk. However, the return on equity has shown improvement, reflecting better utilization of equity resources. The equity ratio has improved slightly, suggesting gradual strengthening of the balance sheet. Overall, financial stability remains a concern due to high debt levels.

Cash Flow

Mukand Limited's operating cash flow has seen improvement in 2025, which is a positive sign for liquidity. The free cash flow growth rate was strong, indicating better cash management. However, the operating cash flow to net income ratio is low, pointing to potential issues in converting revenue into cash. Despite improvements, cash flow risks persist due to high capital expenditures and financing needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.58B	48.90B	51.55B	55.68B	46.43B	26.94B
Gross Profit	11.70B	12.13B	2.18B	9.21B	2.36B	418.90M
EBITDA	2.96B	2.84B	3.08B	4.08B	3.48B	3.00B
Net Income	646.90M	758.90M	1.03B	1.72B	1.76B	-2.04B
Balance Sheet
Total Assets	37.76B	35.42B	30.46B	31.78B	34.68B	32.37B
Cash, Cash Equivalents and Short-Term Investments	631.50M	260.00M	510.10M	1.97B	433.30M	4.52B
Total Debt	18.11B	15.59B	14.89B	15.05B	20.26B	20.72B
Total Liabilities	28.18B	25.92B	21.25B	23.24B	28.44B	27.75B
Stockholders Equity	9.57B	9.50B	9.21B	8.54B	6.66B	4.63B
Cash Flow
Free Cash Flow	-1.84B	540.30M	123.20M	449.50M	-2.99B	-3.35B
Operating Cash Flow	-1.41B	1.80B	649.40M	1.06B	-1.04B	-3.28B
Investing Cash Flow	-260.30M	-1.24B	990.40M	6.19B	2.79B	13.45B
Financing Cash Flow	1.52B	-857.60M	-1.52B	-7.28B	-1.66B	-9.97B

Mukand Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 138.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUKANDLTD, the sentiment is Negative. The current price of 138.6 is above the 20-day moving average (MA) of 126.33, above the 50-day MA of 128.28, and above the 200-day MA of 131.82, indicating a bearish trend. The MACD of -2.63 indicates Positive momentum. The RSI at 36.63 is Neutral, neither overbought nor oversold. The STOCH value of 13.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MUKANDLTD.

Mukand Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VSSL	75 Outperform	₹22.49B	20.43	―	1.03%	-1.47%	-15.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.27B	36.69	―	2.08%	4.65%	-127.24%
MSPL	51 Neutral	₹16.99B	96.37	―	―	-3.14%	-466.99%
MUKANDLTD	50 Neutral	₹17.05B	47.87	―	1.50%	-5.63%	-34.36%
SANGHIIND	44 Neutral	₹13.28B	-3.63	―	―	32.54%	19.65%