Mukand Limited, a part of the Bajaj Group, is one of India's leading conglomerates involved in the manufacture of speciality steel products and heavy machinery. The company is engaged in the manufacturing of special alloy steel, billets, bars, rods, EOT cranes, material handling equipment, and other industrial machinery, along with comprehensive engineering services.
The company is part of the diversified Bajaj Group, which has significant involvement in various industries such as automobiles (2 and 3-wheelers), home appliances, lighting, iron and steel, insurance, travel, and finance. Other prominent group companies include Bajaj Auto, Bajaj Electrical, Bajaj Finance, Bajaj Finserv, and Bajaj Holdings & Investments. This diversified group structure provides Mukand with strategic advantages and access to various business verticals, benefiting from strong financial backing and market presence.
Mukand Limited operates through multiple divisions, including steel manufacturing, industrial machinery, and engineering services. The company is primarily engaged in the manufacturing of alloy steel and stainless steel bars, rods, structurals, and rails. It manufactures specialty steel products and heavy machinery, catering to critical industries like automotive, engineering, and construction. With advanced manufacturing facilities in India, Mukand provides high-quality steel and engineering solutions to both domestic and global markets.
The company has a strong focus on technological advancement and product development. Recent developments include:
- Micro Alloyed Steel: Developed micro alloyed steel with high vanadium for connecting rod applications and boron micro alloyed steel with specific end quenched hardenability used for crank pins.
- Alloy Steel Grades: Developed ASTM A 350 LF 2 and LF 6 alloy steel grades in heavy rounds, specifically for flanges used in the Oil and Gas industries.
- Stainless Steel: The stainless steel division developed martensitic stainless steel grade 410L with low Carbon for ribbed bars used in the construction industry.
Mukand has a market capitalization of ₹2,069 crore as of the latest available data, positioning it in the mid-cap segment of the Indian stock market. The company's financial performance has shown mixed results in recent periods.
For the full financial year ended March 2025:
- Sales: Declined 5.50% to Rs 4,889.99 crore in FY2024-25, compared to Rs 5,174.81 crore in FY2023-24.
- Net Profit: Declined 26.92% to Rs 75.89 crore in FY2024-25, compared to Rs 103.85 crore in FY2023-24.
For the quarter ended March 2025 (Q4 FY25):
- Sales: Declined 10.67% to Rs 1,106.89 crore in Q4 FY2024-25, compared to Rs 1,239.16 crore in Q4 FY2023-24.
- Net Profit: Declined 62.48% to Rs 10.90 crore in Q4 FY2024-25, compared to Rs 29.05 crore in Q4 FY2023-24.
- Market Capitalization: ₹2,069 crore (as of latest data)
- Promoter Holding: 74.7% (Bajaj Group)
- P/E Ratio: 27.3
- Book Value: ₹65.7
- Dividend Yield: 1.41%
- ROCE (Return on Capital Employed): 10.1%
- ROE (Return on Equity): 8.11%
- Debt to Equity Ratio: 11%
Promoter holding stands at a robust 74.7%, indicating strong management control and confidence in the company's future prospects. The stock has experienced volatility in recent periods, with its 52-week high price reaching ₹188.20.
The stock trades at a P/E ratio of 27.3, a book value of ₹65.7, and offers a dividend yield of 1.41%. The company's return metrics, with a ROCE of 10.1% and ROE of 8.11%, are within reasonable ranges for the steel and engineering sector.
Mukand Limited has undertaken strategic initiatives to expand its business operations:
- Mukand Heavy Engineering Limited (MHEL): In 2023-24, the company incorporated Mukand Heavy Engineering Limited (MHEL) as its 99.90% subsidiary on December 15, 2023. This entity was established to focus on the Industrial Machinery and Gear Box Manufacturing business.
- Transfer of Industrial Machinery Business: The Board of Mukand, at its meeting held on May 16, 2025, approved the transfer of a part of its Industrial Machinery Business to MHEL. This includes the activities of designing, manufacturing, erecting, and commissioning EOT Cranes, other materials handling, and process plant equipment.
- Dividend Recommendation: On May 16, 2025, the Board of Directors recommended a Final Dividend of Rs.2 per share (i.e., 20%), subject to the approval of the shareholders.
Mukand Limited operates in a competitive steel and engineering sector, facing challenges such as:
- Sales Growth: The company has delivered a modest sales growth of 10.8% over the past five years, indicating challenges in maintaining consistent growth momentum.
- Interest Coverage Ratio: The company has a low interest coverage ratio, suggesting some financial leverage concerns that investors should monitor closely.
Despite these challenges, the company maintains a reasonable debt-to-equity ratio of 11%, which signals a relatively healthy balance sheet and provides some reassurance about its financial stability.
Mukand's key competitors in the sector include JSW Steel Ltd, Tata Steel Ltd, Jindal Steel & Power Ltd, Tube Investments of India Ltd, Steel Authority of India Ltd, Jindal Stainless Ltd, APL Apollo Tubes Ltd, Welspun Corp Ltd, and Shyam Metalics & Energy Ltd.
