New Product Or Brand Launch
Expected: FY26-FY27HIGH confidence
What: Capex: ₹250 Cr
Pradeep Metals Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +48.8%Weak12w Streak
In , Pradeep Metals Ltd (Forgings) is outperforming Nifty 500 with +48.8% relative strength. Fundamentals: Weak. On a 12-week streak.
Pradeep Metals Ltd Key Facts
- PE Ratio
- 23.6x
- Market Cap
- ₹640 Cr
- PAT Growth YoY
- +7%
- Revenue Growth YoY
- +6%
- OPM
- 14.9%
- RS vs Nifty 500
- +48.8%
PE: Mid ExpansionMomentum Only
What's Happening
💰Trading 55% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. New Product Or Brand Launch
FY26-FY27HIGH
2. Interest Cost Reduction Deleveraging
Q3 FY26LOW
Key Risks
1. Rising raw material costs for industrial metals like copper and aluminum are cre
MEDIUM2. Middle East conflict is disrupting global smelting facilities and increasing ene
MEDIUM3. Rising employee costs contributed to sequential margin compression in Q3
LOWSector-Specific Signals
Operating Profit Margin14.94%Not Given
Interest Cost₹1.76 CrNot Given
Borrowing Capacity₹350 CrIncreased from ₹180 Cr
Export Sales to Subsidiaries₹250.85 Cr
Key Numbers
PAT Growth YoY
+7%
Inflection Up
Revenue YoY
+6%
Stable
Operating Margin
14.9%
+44 bps YoY
PE Ratio
23.6
Current Price
₹370
Dividend Yield
0.67%
Fundamental Score
37/100
Weak
3Y PAT CAGR
+11%
Market Cap
696 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Pradeep Metals Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Interest Cost Reduction Deleveraging
Expected: Q3 FY26LOW confidence
What: Interest Expense: ₹1.76 Cr
Impact: 9% reduction
What Are the Key Risks for Pradeep Metals Ltd?
Earnings deceleration risks from management commentary
Rising raw material costs for industrial metals like copper and aluminum are cre
MEDIUMTrigger: Rising raw material costs for industrial metals like copper and aluminum are creating a structural deficit.
Management view: Operational efficiency improvements to protect margins.
Monitor: commodity
Middle East conflict is disrupting global smelting facilities and increasing ene
MEDIUMTrigger: Middle East conflict is disrupting global smelting facilities and increasing energy costs.
Management view: Not Given
Monitor: geopolitical
Rising employee costs contributed to sequential margin compression in Q3
LOWTrigger: Rising employee costs contributed to sequential margin compression in Q3.
Management view: Not Given
Monitor: labor
What Did Pradeep Metals Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹83.87 Cr
YoY +5.96%QoQ -2.09%
Revenue grew year-on-year but faced a slight sequential decline of approximately 2%.
EBITDA
₹12.53 Cr
YoY +9.15%Margin 14.94%
EBITDA margins compressed by 189 basis points sequentially due to rising employee and operational costs.
PAT
₹7.06 Cr
YoY +6.65%QoQ -4.47%
Net profit showed resilient year-on-year growth despite sequential margin pressure and a 4.5% QoQ dip.
Other Highlights
• Nine-month FY26 cumulative sales reached ₹247.06 crore, up 10.67% year-on-year.
• Interest costs declined to ₹1.76 crore in Q3 FY26 from ₹1.93 crore in Q1 FY26.
• Tax rate normalized to 22.56% from 27.86% in the previous quarter.
What Sector Metrics Matter for Pradeep Metals Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Operating Profit Margin
14.94%
YoY Not GivenQoQ -189 bps
Why: Margin contraction was driven by higher employee costs and increasing operational expenses.
Interest Cost
₹1.76 Cr
YoY Not GivenQoQ Lowered from ₹1.93 Cr in Q1
Why: Reflects improved debt management and a moderating interest burden.
Borrowing Capacity
₹350 Cr
YoY Increased from ₹180 Cr
Why: Enhanced to support the ₹250 Cr Greenfield defense manufacturing facility.
Export Sales to Subsidiaries
₹250.85 Cr
Why: Not explained in source
What Is Pradeep Metals Ltd's Management Guidance?
Forward-looking targets from management
Capex Plan
₹250 Cr
Capex Plan
₹250 Cr
New Greenfield Manufacturing Facility for defense equipment like artillery shell casings.
Management Tone: BULLISH
How Fast Is Pradeep Metals Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +6% | +12% | Stable |
| PAT (Net Profit) | +7% | +11% | Inflection Up |
| OPM | 14.9% | +44 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Pradeep Metals Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Pradeep Metals Ltd's latest quarterly results?
Pradeep Metals Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +6.6% (turning around (inflection up))
- Revenue Growth YoY: +6.0%
- Operating Margin: 14.9% (stable)
Is Pradeep Metals Ltd's profit growing or declining?
Pradeep Metals Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +6.6% (latest quarter)
- PAT Growth QoQ: -4.5% (sequential)
- 3-Year PAT CAGR: +10.5%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Pradeep Metals Ltd's revenue growth trend?
Pradeep Metals Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +6.0%
- Revenue Growth QoQ: -2.1% (sequential)
- 3-Year Revenue CAGR: +12.2%
How is Pradeep Metals Ltd's operating margin trending?
Pradeep Metals Ltd's operating margin is stable.
- Current OPM: 14.9%
- OPM Change YoY: +0.4% basis points
- OPM Change QoQ: -1.9% basis points
What is Pradeep Metals Ltd's 3-year profit and revenue CAGR?
Pradeep Metals Ltd's long-term compounding rates
- 3-Year Profit CAGR: +10.5%
- 3-Year Revenue CAGR: +12.2%
Is Pradeep Metals Ltd's growth accelerating or decelerating?
Pradeep Metals Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: -7.6% bps
- Sequential Acceleration: -37.2% bps
What is Pradeep Metals Ltd's trailing twelve month (TTM) performance?
Pradeep Metals Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹27 Cr
- TTM PAT Growth: -2.9% YoY
- TTM Revenue: ₹334 Cr
- TTM Revenue Growth: +9.8% YoY
- TTM Operating Margin: 15.0%
Is Pradeep Metals Ltd overvalued or undervalued?
Pradeep Metals Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 23.6x
- Price-to-Book: 4.4x
What is Pradeep Metals Ltd's current PE ratio?
Pradeep Metals Ltd's current PE ratio is 23.6x.
- Current PE: 23.6x
- Market Cap: 640 Cr
- Dividend Yield: 0.67%
How does Pradeep Metals Ltd's valuation compare to its history?
Pradeep Metals Ltd's current PE is 23.6x.
- Current PE: 23.6x
- Valuation Assessment: Significantly Overvalued
What is Pradeep Metals Ltd's price-to-book ratio?
Pradeep Metals Ltd's price-to-book ratio is 4.4x.
- Price-to-Book (P/B): 4.4x
- Book Value per Share: ₹85
- Current Price: ₹370
Is Pradeep Metals Ltd a fundamentally strong company?
Pradeep Metals Ltd is rated Weak with a fundamental score of 36.82/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +6.0% (10% weight)
- PAT Growth YoY: +6.6% (10% weight)
- PAT Growth QoQ: -4.5% (10% weight)
- Margins stable (10% weight)
Is Pradeep Metals Ltd debt free?
Pradeep Metals Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹67 Cr
What is Pradeep Metals Ltd's return on equity (ROE) and ROCE?
Pradeep Metals Ltd's return ratios over recent years
- FY2023: ROCE 25.0%
- FY2024: ROCE 20.0%
- FY2025: ROCE 21.0%
Is Pradeep Metals Ltd's cash flow positive?
Pradeep Metals Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹33 Cr
- Free Cash Flow (FCF): ₹14 Cr
- CFO/PAT Ratio: 122% (strong cash conversion)
What is Pradeep Metals Ltd's dividend yield?
Pradeep Metals Ltd's current dividend yield is 0.67%.
- Dividend Yield: 0.67%
- Current Price: ₹370
Who holds Pradeep Metals Ltd shares — promoters, FII, DII?
Pradeep Metals Ltd's shareholding pattern (Mar 2026)
- Promoters: 73.5%
- DII (Domestic): 0.1%
- Public: 26.4%
Is promoter holding increasing or decreasing in Pradeep Metals Ltd?
Pradeep Metals Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 73.5% (Mar 2026)
- Previous Quarter: 73.5% (Dec 2025)
- Change: 0.00% (stable)
How long has Pradeep Metals Ltd been outperforming Nifty 500?
Pradeep Metals Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Pradeep Metals Ltd a new momentum entry or an established outperformer?
Pradeep Metals Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Pradeep Metals Ltd?
Pradeep Metals Ltd has 2 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — The defense pivot represents a massive shift in scale compared to the current market cap.
- Interest Cost Reduction Deleveraging — Incremental improvement in debt management supports the bottom line.
What are the key risks in Pradeep Metals Ltd?
Pradeep Metals Ltd has 3 key risks worth monitoring
- [MEDIUM] Rising raw material costs for industrial metals like copper and aluminum are cre — Rising raw material costs for industrial metals like copper and aluminum are creating a structural deficit.
- [MEDIUM] Middle East conflict is disrupting global smelting facilities and increasing ene — Middle East conflict is disrupting global smelting facilities and increasing energy costs.
- [LOW] Rising employee costs contributed to sequential margin compression in Q3 — Rising employee costs contributed to sequential margin compression in Q3.
What is Pradeep Metals Ltd's management guidance for growth?
Pradeep Metals Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: ₹250 Cr for New Greenfield Manufacturing Facility for defense equipment like artillery shell casings.
- Management tone: bullish
What sector-specific metrics matter most for Pradeep Metals Ltd?
Pradeep Metals Ltd's most important sub-sector-specific KPIs from the latest concall
- Operating Profit Margin: 14.94% (YoY Not Given) (QoQ -189 bps) — Margin contraction was driven by higher employee costs and increasing operational expenses.
- Interest Cost: ₹1.76 Cr (YoY Not Given) (QoQ Lowered from ₹1.93 Cr in Q1) — Reflects improved debt management and a moderating interest burden.
- Borrowing Capacity: ₹350 Cr (YoY Increased from ₹180 Cr) — Enhanced to support the ₹250 Cr Greenfield defense manufacturing facility.
- Export Sales to Subsidiaries: ₹250.85 Cr — Not explained in source
Is Pradeep Metals Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Pradeep Metals Ltd may be worth studying
- Earnings growing at +6.6% YoY
- Cash flow is positive — CFO ₹33 Cr
What is the investment thesis for Pradeep Metals Ltd?
Pradeep Metals Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Rising raw material costs for industrial metals like copper and aluminum are cre
What is the future outlook for Pradeep Metals Ltd?
Pradeep Metals Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Rising raw material costs for industrial metals like copper and aluminum are cre
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.