Mughal Iron & Steel (MUGHAL): Industries Limited On track to eclipse competitors – By Foundation Research
<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">MUGHAL, the leading graded long steel manufacturer located
in the heart of the North region, shines as our top recommendation in the steel
sector. Stand out factors for the company are (1) diversified product portfolio
in ferrous segment and double-digit margins in nonferrous segment, (2) energy
cost savings post commissioning of the captive power plant that will reduce
reliance on grid, (3) recycling plant in nonferrous segment to optimize
operational efficiencies, (4) healthy revenue contribution from girders (29% in
FY23) is still a cash cow for the company and (5) strong international copper
prices due to global shift towards renewables and EVs. In light of the above,
we upgrade our rating on MUGHAL from ‘Neutral’ to 'Outperfor...
