Manaksia Coated Metals & Industries Ltd.: overview
Manaksia Coated Metals & Industries Ltd. (NSE Code: MANAKCOAT; Market Cap: Rs. 1,609 Cr.) has strengthened its growth prospects with a successful Rs. 150 Cr Qualified Institutional Placement (QIP), which was fully subscribed, alongside a fresh export Memorandum of Understanding (MoU) worth Rs. 210 Cr with a leading European client. These developments reinforce institutional confidence in the Company's business fundamentals, strengthen its international business pipeline, and provide financial flexibility to support its upcoming capacity expansion and backward integration initiatives.
Key Recent Developments
1. Successful QIP of Rs. 150 Cr – Strengthening the Balance Sheet
Successfully raised Rs. 150 Cr through a fully subscribed QIP, witnessing participation from reputed institutional investors.
The fundraise strengthens the balance sheet and provides financial flexibility to support the Company's ongoing capacity expansion and backward integration plans.
The capital raise comes at an important stage of the Company's investment cycle, supporting its long-term vision of tripling output, revenue and EBITDA by FY29.
2. Rs. 210 Cr Export MoU – Strengthening Global Presence
Signed a fresh export MoU worth Rs. 210 Cr with a leading European client, further strengthening its international customer relationships.
Export revenues stood at Rs. 603 Cr in FY26 and Rs. 397 Cr in H1 FY27, with exports contributing 68.21% of FY26 revenue.
Expanded its international footprint by entering four new markets – Latvia, Brazil, Jamaica and Somalia during H1 FY27.
The MoU provides potential for repeat business and sustained offtake, supporting higher utilization of value-added product capacities.
Other Key Reasons to Look at the Company
1. Established Position in Value-Added Coated Steel
Manaksia Coated Metals has over 15 years of experience in manufacturing and exporting Alu-Zinc Coated and Pre-Painted Steel products. The Company serves 240+ active customers across 20+ Indian states and more than 22 countries worldwide. Its specialized value-added products cater to diverse industries, including construction, automotive, appliances, and general engineering, offering superior corrosion resistance and product quality.
2. Strong Export Presence & Growing Global Reach
The Company has established a strong export-oriented business model, with exports contributing 68.21% of FY26 revenue. It recorded exports of Rs. 603 Cr in FY26 and Rs. 397 Cr in H1 FY27, while expanding into four new international markets – Latvia, Brazil, Jamaica and Somalia. Supported by long-standing international customer relationships, a Rs. 210 Cr fresh export MoU and an export order book of approximately Rs. 420 Cr, the Company is strengthening its global footprint and revenue visibility.
3. Significant Capacity Expansion Underway
The Company is undertaking a phased expansion program to scale its value-added product capacities, strengthen backward integration and improve operating efficiencies.
Pre-Painted Steel Capacity Expansion –Phase 1: The second Colour Coating Line, with an installed capacity of 1,50,000 MTPA, involves an estimated capex of Rs. 65 Cr. It will increase total Pre-Painted Steel capacity from 86,000 MTPA to 2,36,000 MTPA, representing a 2.7x increase. The line is targeted for commissioning in Q3 FY27.
Alu-Zinc Capacity Expansion – Phase 2: The Company plans to add a second Alu-Zinc coating line of 1,80,000 MTPA, with an estimated capex of Rs. 150 Cr. This will double the existing capacity of 1,80,000 MTPA to 3,60,000 MTPA. The project is targeted for completion by FY28 and is expected to enhance product quality, production efficiency, and downstream capacity utilization.
Backward Integration – Cold Rolling Mill (CRM) Complex: The Company is setting up a 3,60,000 MTPA Cold Rolling Mill complex with an estimated capex of Rs. 200 Cr, targeted for FY28. The project will enable a shift from Cold Rolled Steel (CRC) to Hot Rolled Steel (HRC) as the primary input, reducing dependence on suppliers, strengthening raw material security, improving cost predictability, and enhancing margins and production flexibility.
Renewable Energy – 7 MW Captive Solar Power Plant: The Company is developing a 7 MW captive solar power plant at its Kutch facility, with an estimated investment of Rs. 30 Cr. Targeted for commissioning in Q3 FY27, the plant is expected to offset 50–55% of grid power dependency, reduce effective power costs by up to 40% and generate annual savings of up to Rs. 7 Cr.
Digitalization – Salesforce CRM & MES Implementation: The Company is also investing in digital capabilities to improve operational and sales efficiency. Salesforce CRM, targeted for go-live in Q3 FY27, will enable centralized customer visibility, order tracking and demand forecasting. The Manufacturing Execution System (MES), targeted for Q1 FY28, will strengthen production planning, process control, quality management and dispatch operations.
4. Strong Financial Performance & Growth Visibility
The Company reported total income of Rs. 321.55 Cr, EBITDA of Rs. 36.91 Cr and PAT of Rs. 18.73 Cr in Q2 FY27. Its order book stood at approximately Rs. 525 Cr, providing healthy revenue visibility for the coming months. With a strengthened balance sheet following the successful QIP, ongoing capacity expansion, and increasing export traction, the Company is progressing towards its FY29 vision of tripling output, revenue, and EBITDA.
With a successful institutional fundraise, growing international customer relationships, a strong order book and significant capacity expansion plans, Manaksia Coated Metals is entering an important phase of its growth journey. Its focus on value-added products, export market expansion, backward integration, and operational efficiencies positions it well to capture emerging opportunities in the coated steel industry – that's why the stock is worth looking at.
If you want to know more about the company, click here! Disclaimer - Informational only. Not investment advice.GoIndia Advisors LLP | SEBI Registered Research Analyst | Reg. No. INH000020040 | BSE Enlistment No. - 6518