Maithan Alloys Ltd

Good overall analysis. A few things I would point out

1. Yes their ROCE is high but they have a lot of cash lying around with no plan to disburse it to the shareholders, so essentially this metric is skewed. Gives a good representation of the business’s ability to give returns but overall, without much reinvestment possible right now, it would be better to look at this metric after adding cash cause essentially it is employed in the business if not given to shareholders

2. Connected to the above only, and your point on Investing activity and trading. I believe they do not trade. The investments purchased and sold are Arbitrage funds where the huge amount of cash is invested. I believe (and hope) they are not trading. Albeit they do trade a little (below 10% of the revenue I believe) hence they provide a metric termed Manufacturing EBITDA etc. and also have some expenses coming from traded goods. If you’ll go through the reports, you are sure to see a few lines on how they do not keep open positions and do not speculate

Also the valuation metrics are skewed too due to the upcycle by steel and greater realisations by the company. The market knows that this is a one time thing and prices it accordingly. If you will check, the steel prices have actually started to come down and ore prices have started to increase, one of the reasons why 2023 will be degrowth.

Disc: Invested