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Debt-Free and Cash-Rich company: One of the Largest Producers in its Industry

Maithan Alloys

Current Market price on the date of publishing this report – 1100 Rs


Incorporated in 1985, Company swiftly embarked on a path to excellence and continuous accomplishments. During its journey, the Company obtained the ISO9001 certification, solidifying its commitment to quality across all products and processes. Additionally, the Company pursued the ISO18001 certification, prioritizing health and safety measures. With the maiden plant located in Kalvaneshwari, West Bengal, Maithan Alloys embarked on a course of expansion and growth over the next decade, solidifying its position as one of the top manufacturers and exporters of manganese alloys. Within a span of five years (2007-2012), the Company not only established two additional plants in Meghalaya and Vishakhapatnam but also ventured into the export business, reaching various continents. Recently, the Company’s exports business reached new heights with the successful delivery of its first bulk vessel, weighing 6000 tonnes, to Qatar. Maithan operates three plants strategically located in Kalyaneshwari, West Bengal (with a capacity of 94,600 metric tonnes per annum, or mtpa), Visakhapatnam, Andhra Pradesh (with a capacity of 120,000 mtpa), and Ri-Bhoi, Meghalaya (with a capacity of 21,000 mtpa). As of FY21, MAL had five to 15 years of association with most of its top 10 customers which contributed 59% to the total revenue in FY21. With an established brand and a widespread presence across India, the company serves a diverse customer base in approximately 35 countries globally. As of the fiscal year 2022, the company boasts five subsidiaries, namely:

  1. AXL-Explorations Pvt. Ltd. (75% ownership)
  2. Anjaney Minerals Ltd. (100% ownership)
  3. Salanpur Sinters Pvt. Ltd. (100% ownership)
  4. Maithan Ferrous Pvt. Ltd. (100% ownership)
  5. Impex Metals and Ferro Alloys Ltd. (100% ownership, acquired in FY22)

These subsidiaries further contribute to the company’s diversified portfolio and operational capabilities.

Business products

Company mainly has 3 products and they are Ferro Manganese, Ferro Silicon & Silicon Manganese

Ferro Manganese

Ferro Manganese is predominantly composed of manganese and iron, forming an essential alloy. With its elevated manganese content, it is specifically employed in steel products that require strict control of silicon levels, maintaining them at lower levels. This alloy plays a vital role in the production of silico manganese, contributing to the manufacturing of flat steel, manganese-rich steel, and stainless steel products.

Silicon Manganese

Silicon Manganese is a composite alloy consisting of manganese, silicon, and iron. This cost-effective combination of manganese and silicon is widely favored by steel manufacturers. It finds application across various steel products and is particularly utilized in significant quantities for 200 series stainless steel, alloy steel, and manganese steel.

Ferro Silicon

Ferro Silicon is a composite alloy comprising silicon and iron. With silicon acting as a potent oxidant for steel, Ferro Silicon finds its primary application in special steels, while also being employed in smaller quantities for mild steel. Furthermore, Ferro Silicon is utilized in the production of silicon, corrosion-resistant alloys, high-temperature resistant ferrous silicon alloys, as well as silicon steel used in electromotors and transformer cores.


For the year ended March 23

  • Net sales amounted to Rs. 2,885 crore, representing a modest decrease of 3.5% compared to the previous year’s figure of Rs. 2,987 crore.
  • The yearly net profit for March 2023 reached Rs. 499 crore, indicating a significant decline of 38% compared to the corresponding period in March 2022, which stood at Rs. 818 crore.
  • The EBITDA stood at Rs. 586 crore in March 2023, reflecting a notable decrease of 45% compared to the EBITDA of Rs. 1075 crore achieved in March 2022.
  • As of March 2023, the company held a cash balance of over 1100 crores, while total investments stood at 870 crores.
  • Considering the cash balance and investments alone, the book value totals approximately 1970 crores, with a per-share value of around 675 Rs per share. This indicates an exciting opportunity from a book value perspective.
  • In addition to the aforementioned financial highlights, the company has consistently maintained a solid Return on Capital Employed (ROCE) of over 20%. This signifies the company’s ability to generate efficient returns on its capital investments.
  • Furthermore, the company has demonstrated commendable sales growth over a three-year and five-year period, with Compound Annual Growth Rates (CAGR) of 17% and 9% respectively. This steady sales growth reflects the company’s market strength and its ability to capture opportunities.
  • The net profit growth has also been impressive, with a remarkable 48% growth over the three-year period and a solid 15% growth over the five-year period. This indicates the company’s consistent profitability and efficient management of its operations.

For Q4FY23

  • In March 2023, the net sales amounted to Rs. 534.73 crore, reflecting a decrease of 36.12% compared to the previous year’s figure of Rs. 837.14 crore.
  • The quarterly net profit for March 2023 was recorded at Rs. 98.14 crore, exhibiting a decline of 59.44% when compared to the corresponding period in March 2022, which stood at Rs. 241.94 crore.
  • As for the EBITDA, it stood at Rs. 132.62 crore in March 2023, indicating a decrease of 58.76% compared to the EBITDA of Rs. 321.59 crore achieved in March 2022.

Capex , Managements Comments and Future Outlook

No significant information about the company’s activites or future outlook or any comments by the management relating to the capex are not visible in the public domain. Therefore we are not able to take any call as well as at the end of March 23 we did not find any current work in progress. However following points relating to the management’s comments are avialble which are Company has demonstrated an astute business acumen, has chosen to invest judiciously by resisting the temptation of hasty acquisitions or venturing into non-core businesses. Expansions are carefully reconsidered only after the previous expansions have achieved high utilization rates. Company, on the resources side, abstains from taking open market positions and instead focuses entirely on efficient conversion processes. With a strong foothold in global economies and no exposure to China, Maithan is positioned to experience a significant surge in demand momentum. This is supported by company’s proven track record and robust product portfolio of ferro alloys.


Maithan Alloys Ltd, a 38-year-old debt-free and cash-rich company, stands out as one of India’s leading manufacturers and exporters of niche value-added manganese alloys. With a broad product portfolio, extensive manufacturing capacity, and the expertise of its promoters, the company has established a strong position in the manganese alloy industry. With an installed capacity of 2,35,600 TPA and the recent acquisition of IMFAL, adding an additional capacity of 49,500 MTPA in fiscal 2022, Maithan Alloys Ltd has emerged as the largest manganese alloy manufacturer in India. The company caters to prominent steel producers such as Steel Authority of India Ltd (SAIL) and Tata Steel Ltd in the domestic market while expanding its presence overseas. (as per old records) Benefiting from over two decades of experience, the promoters possess a deep understanding of market dynamics and maintain healthy relationships with customers and suppliers, providing strong support to the business. Considering the company’s promising financial performance, solid returns, consistent sales growth, and increasing net profits, Maithan Alloys Ltd presents itself as an attractive long-term opportunity. Its stable financial position, combined with its established market presence and strong industry reputation, make the company worth exploring.

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