Mukand Limited (MUKANDLTD) AI Stock Analysis

• Market Cap: ₹18.31B
• 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: 48 Neutral
• Price Target: ₹125.00 ▼(-9.81% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

Overall score reflects mixed financial performance with high leverage and revenue volatility as key risks, a neutral-to-weak technical backdrop (negative MACD and below longer-term moving averages), and a demanding valuation (high P/E) only partially offset by a modest dividend yield.

Positive Factors

Margin Improvement

Material margin improvement in 2025 reflects better cost control, pricing or a tilt to higher‑value alloy/specialty products. Sustained higher gross and EBIT margins can enhance resilience through steel cycles and support reinvestment and debt servicing over the medium term.

Improving Cash Generation

Improved operating cash flow and strong free cash flow growth signal better cash conversion and liquidity. Over 2–6 months this strengthens financial flexibility to fund working capital, capex and reduce reliance on external financing provided improvements persist.

Business Diversification

A dual model—specialty long/alloy steel plus engineering/project execution—reduces dependence on commodity cycles. Engineering contracts and equipment sales can provide higher‑margin, milestone‑based revenues that stabilize cash flows and create cross‑sell opportunities long term.

Negative Factors

High Leverage

Elevated debt-to-equity increases interest and refinancing risk, limiting strategic flexibility. In a cyclical capital‑intensive industry, high leverage raises vulnerability to demand downturns and constrains ability to invest in capacity or absorb raw‑material cost swings over the medium term.

Revenue Decline/Volatility

A recent revenue decline and historical volatility erode operating leverage and make sustaining margin gains harder. Persistent top‑line weakness reduces cash generation potential and may reflect cyclical demand or market share pressure, posing medium‑term execution risk.

Weak Net Profitability & Structural D&A Drag

Low net margins combined with rising depreciation/amortization imply limited cash profits and capital intensity. Structural profitability constraints reduce retained earnings and ROIC, making balance‑sheet repair and organic capitalization slower unless margins or asset efficiency improve.

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

Mixed fundamentals: improved gross/EBIT margins and operating cash flow, but revenue declined in 2025, net margins remain low, and leverage is high (elevated debt-to-equity), keeping overall financial risk elevated.

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: Positive
• Last Price: 138.60
• 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:MUKANDLTD, the sentiment is Positive. The current price of 138.6 is above the 20-day moving average (MA) of 126.07, above the 50-day MA of 128.08, and above the 200-day MA of 131.86, indicating a neutral trend. The MACD of -2.15 indicates Positive momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 39.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹22.19B	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	₹9.26B	36.69	―	2.08%	4.65%	-127.24%
MSPL	51 Neutral	₹17.30B	96.37	―	―	-3.14%	-466.99%
MUKANDLTD	48 Neutral	₹18.31B	47.87	―	1.50%	-5.63%	-34.36%
SANGHIIND	44 Neutral	₹13.48B	-3.63	―	―	32.54%	19.65%