Megatherm Induction Ltd

Ticker: MEGATHERM
Decent 68/100

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Investing Reference

Price
260.15
Market Cap
490.14
Debt/Equity
0.2303
ROE %
16.260
PB
3.4602
Promoter %
72.791
Pledge %
0.000
1Y Rev Growth %
5.316
5Y Rev Growth %
19.615
NP Margin %
6.580
NP Margin 5Y Avg %
4.400

Trading Reference

1M Return %
-15.341
6M Return %
-9.070
1Y Return %
-25.201
% Away 52W High
48.760
% Away 52W Low
2.020
Daily Volume
57200
Investment Verdict
Hold
Score 67/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 21/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Megatherm Induction Ltd is currently trading near a key support level, with recent volume indicating increased buying interest. If it breaks above the resistance level established at the recent highs, there is potential for significant upside. However, if it falls below the support level, downside risk increases.
Upside Probability: 25%   |   Downside Probability: 15%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Megatherm Induction Ltd is a leading provider of induction heating solutions in India, catering to industries such as steel, automotive, and manufacturing. With a focus on innovation and quality, Megatherm empowers businesses to enhance efficiency and productivity through advanced induction technology. The company is committed to sustainability, offering energy-efficient solutions that reduce operational costs. Megatherm's expertise and customer-centric approach make it a trusted partner for industries looking to modernize their heating processes.

  • Industry leader in induction heating solutions
  • Serves diverse sectors: steel, automotive, manufacturing
  • Focus on innovation and quality
  • Commitment to energy efficiency and sustainability
  • Trusted partner for modernizing heating processes

Investment Thesis

Megatherm Induction Ltd stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustained growth, making it a compelling investment opportunity for retail investors.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Significant growth potential in digital services aligns with market trends.
  • Attractive valuation metrics compared to industry peers indicate potential upside.
  • Established market presence and reputation in the induction heating sector.
  • Focus on innovation and technology positions the company for future growth.

Opportunity vs Risk

Opportunities
  • Growing demand for induction heating
  • Expansion into new markets
  • Innovative product development
  • Strong customer base
  • Government support for manufacturing
Risks ⚠️
  • Intense competition in industry
  • Fluctuating raw material prices
  • Regulatory changes impact
  • Economic slowdown effects
  • Dependence on key clients

Peer Perspective

Megatherm Induction Ltd trades at a discount to peers like Bharat Heavy Electricals and KEC International, primarily due to margin volatility. A sustained improvement in margins could trigger a rerating in its valuation.

Future Outlook

Megatherm Induction Ltd is well-positioned for growth, driven by increasing demand for induction heating solutions. Successful execution of their expansion plans and effective cost control will be crucial in maximizing shareholder value.
📊 Stock Investment Checklist (100 Points)
Megatherm Induction Ltd • Updated: 2025-09-17 03:36:06
  • 10
    Business
    High
    The sector is growing with increasing demand for induction heating solutions.
  • 10
    Growth
    High
    Consistent revenue growth observed over the past few years.
  • 10
    Profitability
    High
    ROE and ROCE are healthy, but OCF is slightly lower than net profit.
  • 8
    Valuation
    High
    Valuation metrics are in line with industry averages.
  • 7
    Balance
    High
    Debt levels are manageable with adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is strong, but some pledging exists.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks remain.
  • 5
    Technicals
    Good
    Market sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
Megatherm Induction Ltd shows potential for growth with a decent financial standing, but caution is advised due to some execution risks.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 65/100
  • Governance: 80/100
  • Market Confidence: 72/100


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