Mukand Limited (MUKANDLTD) AI Stock Analysis

• Market Cap: ₹18.50B
• Dividend Yield: 1.5%
• Average Volume (3M): 19.08K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.91
• Revenue Growth: -5.63%
• EPS Growth: -34.36%
• Country: IN
• Employees: 1,466
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.68
• 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: ₹125.00 ▼(-9.81% Downside)

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 mix of specialty long/alloy steel manufacturing plus an engineering and machinery business provides structural diversification. Engineering contracts are typically milestone-driven and higher value, which smooths cyclicality from commodity steel sales and supports more stable long-term revenues and customer relationships.

Improving gross margins

A significant gross margin improvement in 2025 reflects better cost control or pricing in higher-value alloy lines. Sustained higher gross margins enhance cash generation, protect profitability through steel-price cycles, and allow reinvestment in capacity or product development, strengthening competitive position over months.

Stronger operating and free cash flow

Improved operating cash flow and strong free cash flow growth indicate better cash conversion and liquidity. Durable cash generation supports deleveraging, funds capital expenditures for maintenance or upgrades, and reduces reliance on external financing, improving financial flexibility over the medium term.

Negative Factors

High leverage

Persistently high debt-to-equity raises refinancing and interest-rate risk and constrains strategic flexibility. In a capital-intensive steel and engineering business, elevated leverage increases vulnerability to demand shocks and limits ability to pursue growth projects or absorb cost inflation without compromising financial stability.

Revenue volatility and recent decline

Negative revenue growth and historical fluctuations reflect cyclic end-market demand for steel and project timing in engineering. Revenue volatility undermines predictability of margins and cash flow, complicates capacity utilization planning, and makes sustained margin improvement and deleveraging harder over the coming quarters.

Low net margins and EBITDA pressure

Low net margins and weaker EBITDA—partly from higher depreciation/amortization—limit retained earnings and return on capital. Elevated non-cash charges may signal heavy past capex or aging assets; both scenarios pressure long-term profitability and cash available for debt reduction or strategic investments.

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 generates revenue through multiple streams, predominantly from the sale of its steel products, which include specialty and long steel products used in construction and infrastructure projects. The company's revenue model is heavily reliant on the demand from the construction and automotive sectors, which drives sales volume. Additionally, Mukand Limited earns income from its engineering services and solutions, providing value-added services to clients in various industries. Strategic partnerships with other manufacturers and suppliers enhance their market presence and facilitate access to new clients, further contributing to its earnings. Factors such as global steel prices, demand fluctuations, and operational efficiencies also play a crucial role in determining its overall profitability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.61B	48.90B	51.55B	55.68B	46.43B	26.94B
Gross Profit	11.78B	12.13B	2.18B	9.21B	2.36B	418.90M
EBITDA	3.04B	2.84B	3.08B	4.08B	3.48B	3.00B
Net Income	805.90M	758.90M	1.03B	1.72B	1.76B	-2.04B
Balance Sheet
Total Assets	0.00	35.42B	30.46B	31.78B	34.68B	32.37B
Cash, Cash Equivalents and Short-Term Investments	265.00M	260.00M	510.10M	1.97B	433.30M	4.52B
Total Debt	0.00	15.59B	14.89B	15.05B	20.26B	20.72B
Total Liabilities	-9.50B	25.92B	21.25B	23.24B	28.44B	27.75B
Stockholders Equity	9.50B	9.50B	9.21B	8.54B	6.66B	4.63B
Cash Flow
Free Cash Flow	0.00	540.30M	123.20M	449.50M	-2.99B	-3.35B
Operating Cash Flow	0.00	1.80B	649.40M	1.06B	-1.04B	-3.28B
Investing Cash Flow	0.00	-1.24B	990.40M	6.19B	2.79B	13.45B
Financing Cash Flow	0.00	-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: Negative
• 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 Negative. The current price of 138.6 is above the 20-day moving average (MA) of 126.23, above the 50-day MA of 130.70, and above the 200-day MA of 128.98, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.49 is Neutral, 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	₹24.80B	21.49	―	1.03%	-1.47%	-15.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.73B	32.90	―	2.08%	4.65%	-127.24%
UDAICEMENT	54 Neutral	₹20.29B	136.62	―	―	26.55%	-77.02%
MSPL	51 Neutral	₹17.93B	-21.44	―	―	-3.14%	-466.99%
MUKANDLTD	50 Neutral	₹18.50B	28.60	―	1.50%	-5.63%	-34.36%
SANGHIIND	44 Neutral	₹16.18B	-3.83	―	―	32.54%	19.65%