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MAGNA ELECTRO CASTINGS LTD.-$ (MAGNAELQ) Fair Value & Analysis

Industrials · IN · Market cap ₹5.0B

ME MAGNA ELECTRO CASTINGS LTD.-$ MAGNAELQ · BSE
Price₹1,354
Fair Value₹814.41
Upside-39.8%
Quality52/100
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Expensive Growth
Thin margins · 9.4% net margin
Low debt · negative free cash flow
0.44% dividend yield
Mixed vs. peers (6/13)
Moderate moat 47/100
Evidence: High Range ₹570.09 – ₹1,059 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 6 days ago

A solid business, but screening 40% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,059). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹570.09 to ₹1,059) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹1,439 ₹146.33 Fair Value ₹814.41 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹146.33 – ₹1,439 · fair‑value band ₹570.09 – ₹1,059 · the ₹1,354 price screens above the ₹814.41 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

MAGNA ELECTRO CASTINGS LTD.-$ (MAGNAELQ) currently trades at ₹1,354, while our model-based Fair Value estimate is ₹814.41, implying the stock looks roughly 39.8% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, MAGNA ELECTRO CASTINGS LTD.-$ generated revenue of ₹2.0B at a net margin of 9.4%. Revenue grew 4.6% year over year. It earns a return on equity of 13.5%. Net debt stands at ₹123M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹570.09 (bear case) to ₹1,059 (bull case); at ₹1,354, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 92% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at -40%, MAGNAELQ screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹317.87 ₹384.82 ₹875.09 76
ROIC Compounder ₹488.28 ₹659.76 ₹891.04 72
Gordon GGM ₹52.70 ₹105.00 ₹159.00 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹296.84 ₹1,349 ₹1,850 54
Lynch FV ₹352.94 ₹504.19 ₹655.45 50
PEG = 1.0 ₹352.94 ₹504.19 ₹655.45 46
EPV ₹447.21 ₹521.28 ₹585.18 59
Dividend Discount
Gordon GGM ₹52.70 ₹105.00 ₹159.00 70
DDM Multi-Stage ₹52.70 ₹90.74 ₹110.84 61
Multiples
P/E Multiple ₹687.54 ₹916.72 ₹1,146 63
P/S Multiple ₹556.58 ₹742.10 ₹927.63 58
P/B Multiple ₹556.58 ₹742.10 ₹927.63 55
EV/EBIT ₹709.13 ₹952.80 ₹1,196 53
EV/EBITDA ₹741.56 ₹996.04 ₹1,251 54
EV/Revenue ₹499.86 ₹723.46 ₹947.07 43
Asset-Based
NCAV (Graham) ₹171.31 ₹229.55 ₹342.62 50
Economic Profit
Residual Income ₹317.87 ₹384.82 ₹875.09 76
ROIC Compounder ₹488.28 ₹659.76 ₹891.04 72
Growth Earnings
Growth-Adj P/E ₹570.09 ₹814.41 ₹1,059 68

Widest divergence: Growth Earnings (₹814.41) versus Dividend Discount (₹90.74). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹2.0B
Revenue growth (YoY) +4.6%
Net margin 9.4%
Return on equity 13.5%
Free cash flow −₹358M FY2026
P/E ratio 31.0
More key figures
Operating margin 8.5%
EPS (TTM) ₹43.65
Dividend yield 0.4%
EPS growth (YoY) -44.8%
Net debt ₹123M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 54 · Market factors (momentum, volatility) 67

Profitability 61
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 22
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 12
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 68
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Magna Electro Castings Limited engages in the manufacture and sale of cast iron components in India and internationally.

Full company description

Magna Electro Castings Limited engages in the manufacture and sale of cast iron components in India and internationally. It offers castings, including bearing caps, frame heads, linear yokes, pedestals, push rods, valves, and valves bodies; machining consisting of diffusers, upper covers, sliding sleeves, air manifoders, axial bearings, bearing caps, rocker brackets, and coupling yokes; and special products including austempered ductile iron parts, BRG brush with steamless tube pipes, exhaust manifolds, jounal box adaptors, turbo charger castings, and ductile iron valve with SS rings. The company is also involved in the generation of wind energy. It also exports its products. The company was incorporated in 1990 and is headquartered in Coimbatore, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

MAGNA ELECTRO CASTINGS LTD.-$ reported revenue of ₹2.0B in FY2026 versus ₹1.3B in FY2022, a compound +10.2%/yr. Reported net income was ₹185M in FY2026, compounding +24.3%/yr from FY2022.

Growth Quality 57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹2.0B
Latest YoY
+11.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.2%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.9%
Revenue +10.2%/yr
FY22 ₹1.3B
FY23 ₹1.6B
FY24 ₹1.4B
FY25 ₹1.8B
FY26 ₹2.0B
Net income +24.3%/yr
FY22 ₹77.3M
FY23 ₹171M
FY24 ₹151M
FY25 ₹231M
FY26 ₹185M

MAGNAELQ screens 40% overvalued. Compare with Carpenter Technology Corporation →

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Cite: Fair Value Calculator (2026). "MAGNA ELECTRO CASTINGS LTD.-$ Fair Value". https://www.fairvalue-calculator.com/stock/MAGNAELQ

Peer Group

Metal Fabrication · 250 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Above median
Fair Value upside −40% · Below median
Return on equity (TTM) 13% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 8% · Above median
Revenue growth 5% · Below median
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Metal Fabrication median · lower = cheaper

P/E (TTM) 31.0× · Pricier than median
P/B 3.45× · Pricier than 75% of peers
P/S (TTM) 2.55× · Pricier than 75% of peers
EV/EBITDA 15.4× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE23 · sector 34
PAST54 · sector 19
HEALTH96 · sector 95
DIVIDEND7 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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10 more Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is MAGNA ELECTRO CASTINGS LTD.-$ (MAGNAELQ) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹814.41 versus a price of ₹1,354, about −40% (overvalued).
What is the fair value of MAGNAELQ?
Our model-based fair value for MAGNA ELECTRO CASTINGS LTD.-$ is ₹814.41 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹1,354.
What is the quality score of MAGNAELQ?
MAGNA ELECTRO CASTINGS LTD.-$ has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of MAGNA ELECTRO CASTINGS LTD.-$ (MAGNAELQ)?
MAGNA ELECTRO CASTINGS LTD.-$ reported trailing-twelve-month revenue of about ₹2.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of MAGNAELQ?
The net profit margin of MAGNA ELECTRO CASTINGS LTD.-$ is about 9.4%, meaning it keeps roughly 9.4% of revenue as net income. Based on the latest reported figures.
Does MAGNA ELECTRO CASTINGS LTD.-$ pay a dividend?
MAGNA ELECTRO CASTINGS LTD.-$ currently shows a dividend yield of about 0.44% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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