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Mukand
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Mukand Limited (Mukand), a multi-product company was incorporated on 29th November 1937 at Mumbai, multi-division company involved in the business of Steel Manufacturing, Industrial Machinery Manufacturing and Highway Construction. The Company is a leading supplier of alloy steel to the automobile and auto component industry and a leader in the manufacture of high grade stainless steel in India. With manufacturing facilities in both Dighe, Thane - Maharashtra and Ginigera, Karnataka, Mukand produces hundreds of grades of steel long products in the form of wire rods, bars, wires and bright bars.
Mukand Holdings Pvt Ltd was incorporated as an investment company and became as a subsidiary of Mukand in the year 1979, also became as a public limited company with effect from 30th June of the same year 1979. Ladle refining furnace and the vacuum degassing station of the company were successfully commissioned in the year 1983. The Research & Development (R&D) division of the company was formulated in January of the year 1984 to bailout the company's growth. Basic engineering package was received from BBC Brown Boveri, Switzerland and the whole project was implemented during the year 1986. The R&D unit of the company had designed and installed a pilot plant in the year 1987 for production of larger quantities of coloured stainless steel components. The oxygen top and bottom blown converter was installed. The dust collection system was also installed and commissioned during the period of 1988. In 1989, Mukand Dravo Wellman Pvt Ltd became a subsidiary of the company. During the year 1991, orders were received from SAIL for supply of Oxygen furnace equipment for its Rourkela steel plant modernisation project.
The Machine Building division of the company had received preliminary acceptance certificate in the year 1992 for successful commissioning of 11,000 TPA of equipment for medium merchant and structural mill project of Visakhapatnam steel plant. In order to concentrate on the main business, the company transferred the business of Engineering Construction Division to Mukand Engineers Ltd in the year 1993. The Rolling Mill division of Mukand was set up and commissioned solution annealing furnaces and related downstream facilities in the year of 1995 for coil finishing. Mukand Industrial Machinery Ltd became a wholly owned subsidiary of the company with effect from 31st March of the same year 1995. The Company had entered into technical know-how agreement in the year 1996 with a leading Japanese consultancy firm which would study the company's operations and would implement know-how include training of personnel by the Japanese.
During the year 1999, Mukand had developed a series of innovative technological processes to cope with the current slump in the industry. The Company, Satyam Infoway and M K J Enterprises had entered into a joint venture agreement in 2000 to launch a new company for an e-commerce global portal or web marketplace for steel trading. During the year 2003, the company became as potentially sick industrial company, after two years, Mukand was ceased to be a potentially sick industrial company in the year 2005.In December of the year 2005, the steel plant in Dighe, Thane was awarded the Total Productive Maintenance (TPM) excellence award by the Japan Institute of Plant Maintenance. During the year 2006-07, the company for the first time manufactured and supplied a 500 ton capacity EOT crane, 100 ton hammer head crane and a 30 ton electric level luffing crane under Industrial Machinery Division.
Mukand had inked an agreement with NV Bekaert SA, Belgium in September of the year 2007 to form joint venture (JV) company for produce stainless steel wires in India for global markets. The Company had secured worth of Rs 1.54 billion order from SAIL-IISCO in December of the year 2007 for the process of expanding its capacity at Burnpur in West Bengal. Mukand had signed a joint venture agreement with Vini Iron & Steel Udyog in September of the year 2008 to undertake captive mining of coal block in the State of Jharkhand. The Company plans to set up a stainless steel wire manufacturing facility near Nashik with total investment of Rs 3 billion.
Mukand share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Mukand indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Mukand is valued compared to its competitors.
Mukand PE ratio helps investors understand what is the market value of each stock compared to Mukand 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Mukand evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Mukand generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Mukand in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Mukand shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Mukand compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Mukand over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Mukand helps investors get an insight into when they can enter or exit the stock. Key components of Mukand Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Mukand shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Mukand ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Mukand provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Mukand highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Mukand .
The balance sheet presents a snapshot of Mukand ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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