{"id":10156,"date":"2025-07-22T14:17:56","date_gmt":"2025-07-22T09:17:56","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10156"},"modified":"2025-07-22T14:17:58","modified_gmt":"2025-07-22T09:17:58","slug":"mughal-steels-mughal-margins-improve-but-earnings-still-weak","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/mughal-steels-mughal-margins-improve-but-earnings-still-weak\/","title":{"rendered":"Mughal Steels (MUGHAL), margins improve but earnings still weak"},"content":{"rendered":"\n

Mughal Steels (MUGHAL<\/a>)<\/strong> is expected to report profits of Rs321 million<\/strong> for the April\u2013June 2025 quarter (4QFY25), which is 47% lower than last year<\/strong>. The earnings per share (EPS) is expected to clock in at Rs0.96<\/strong>.<\/p>\n\n\n\n

Here\u2019s what\u2019s happening behind the numbers:<\/p>\n\n\n\n

Positives:<\/h2>\n\n\n\n
    \n
  • Margins are getting better<\/strong>: Gross margins are expected at 8%, up from 5% last year. This is due to:\n
      \n
    • Cheaper scrap prices<\/li>\n\n\n\n
    • Lower energy and financing costs<\/li>\n<\/ul>\n<\/li>\n\n\n\n
    • Sales are steady<\/strong>: Revenues are expected at Rs19.7 billion<\/strong>, almost the same as the previous quarter.<\/li>\n<\/ul>\n\n\n\n

      Challenges:<\/h2>\n\n\n\n
        \n
      • The high-margin non-ferrous segment<\/strong> contributed less this time.<\/li>\n\n\n\n
      • No dividend is expected<\/strong> for FY25.<\/li>\n\n\n\n
      • Despite some improvements, full-year FY25 EPS is just Rs2.31<\/strong>, down 61% YoY<\/strong>.<\/li>\n<\/ul>\n\n\n\n

        Full-year performance snapshot:<\/h2>\n\n\n\n
          \n
        • Revenue<\/strong>: Rs85.9bn (\u21937%)<\/li>\n\n\n\n
        • Net Profit<\/strong>: Rs774mn<\/li>\n\n\n\n
        • EPS<\/strong>: Rs2.31<\/li>\n\n\n\n
        • No payout<\/strong><\/li>\n<\/ul>\n\n\n\n

          Looking ahead:<\/h2>\n\n\n\n

          There\u2019s some hope going into FY26:<\/p>\n\n\n\n

            \n
          • A new coal power plant<\/strong> is expected to come online in 1QFY26, which should reduce energy costs further.<\/li>\n\n\n\n
          • A pickup in ferrous steel demand<\/strong> could help improve performance.<\/li>\n<\/ul>\n\n\n\n

            Investment perspective:<\/h2>\n\n\n\n

            Analysts at JS Global still have a \u2018Buy\u2019<\/strong> call on MUGHAL due to its better financial position and upcoming energy efficiency projects. The stock trades at 29.1x FY25E P\/E<\/strong>, but valuation drops sharply to 5.1x for FY26F<\/strong>, with a potential dividend yield of 3%<\/strong> next year.<\/p>\n\n\n\n

            Source: JS Global <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

            Mughal Steels (MUGHAL) is expected to report profits of Rs321 million for the April\u2013June 2025 quarter (4QFY25), which is 47% lower than last year. The earnings per share (EPS) is expected to clock in at Rs0.96.<\/p>\n","protected":false},"author":9252,"featured_media":6531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[42],"class_list":["post-10156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-mughal"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10156"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10156\/revisions"}],"predecessor-version":[{"id":10157,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10156\/revisions\/10157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6531"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}