Manaksia Aluminium Company, a leading Indian manufacturer and supplier of aluminium products, has reported a score adjustment reflecting shifts in its technical trends. In the past six months, the company has recorded a 25.15 per cent rise in net sales and demonstrated a substantial operating profit to interest ratio. But despite these positive indicators, the company's long-term fundamentals remain weak, highlighted by a high debt-to-EBITDA ratio.
According to the report of Moving Average Convergence Divergence (MACD), a shift in the firm's stock technical indicators have signalled bullish movement week-on-week, where the month-on-month remains mildly bearish. On the other hand, Bollinger Bands show a bullish trend for both the week-on-week and month-on-month periods, suggesting a probable positive momentum.
On the overall performance front, the firm has shown an increased net sales in the past six months, amounting to INR 276.81 crore (USD 33.34 million). Alongside, the firm's profit-to-interest ratio stood at 1.69 times, with a profit of INR 2.47 crore (USD 297,590) before tax.
Irrespective of the fact that the return value of the firm stood at -8.03 per cent in the past year, the profit skyrocketed by 18.9 per cent, showing a financial complexity for the firm.
Manaksia’s net sales also grew over the past years, from INR 271.63 crore (USD 32.72 million) in FY2021 to INR 509.15 crore (USD 61.34 million) in FY2025. But its profit before tax declined, partially attributed to the rising raw material costs from INR 188.63 crore (USD 22.72 million) in FY21 to INR 400.75 crore (USD 48.26 million) in FY25.
The profit earned before the tax, which was at INR 11.10 crore (USD 1.34 million) in FY23, decreased to INR 8.07 crore (USD 972,289) in FY25. But the profit after tax reflected the opposite trend, surging to INR 6.05 crore (USD 728,916) in FY2025. The firm's operating profit, excluding other income, also witnessed a sharp increase from INR 10.60 crore (USD 1.28 million) in FY21 to INR 42.91 crore (USD 5.17 million) in FY25.
At present, the company's stock is being traded at a discount in comparison to the previous historical valuations, which pegged the ratio at 1.7. But, the long-term fundamentals represent further weakness where the ratio of the high debt to EBITDA would be 5.25 times. The company's average Return on Capital Employed (ROCE) is deemed to be 8.32 per cent.
While Manaksia Aluminium demonstrates operational growth and improved sales, its elevated debt levels and fluctuating profitability signal the need for cautious optimism among investors and stakeholders.
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