Maithan Alloys Profit Margin vs. Return On Equity

MAITHANALL   1,139  32.75  2.80%   
Based on Maithan Alloys' profitability indicators, Maithan Alloys Limited may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Maithan Alloys' ability to earn profits and add value for shareholders.
For Maithan Alloys profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Maithan Alloys to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Maithan Alloys Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Maithan Alloys's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Maithan Alloys Limited over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Maithan Alloys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Maithan Alloys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Maithan Alloys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Maithan Alloys Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Maithan Alloys's current stock value. Our valuation model uses many indicators to compare Maithan Alloys value to that of its competitors to determine the firm's financial worth.
Maithan Alloys Limited is considered to be number one stock in profit margin category among its peers. It is regarded third in return on equity category among its peers reporting about  0.27  of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for Maithan Alloys Limited is roughly  3.74 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Maithan Alloys by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Maithan Alloys' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Maithan Return On Equity vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Maithan Alloys

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.44 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Maithan Alloys

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Maithan Return On Equity Comparison

Maithan Alloys is currently under evaluation in return on equity category among its peers.

Maithan Alloys Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Maithan Alloys, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Maithan Alloys will eventually generate negative long term returns. The profitability progress is the general direction of Maithan Alloys' change in net profit over the period of time. It can combine multiple indicators of Maithan Alloys, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income553.9 M581.6 M
Operating Income2.7 B2.4 B
Income Before Tax4.5 B2.6 B
Total Other Income Expense Net1.8 B1.9 B
Net Income3.5 B2.5 B
Income Tax ExpenseB592.9 M
Net Income From Continuing Ops3.5 BB
Net Income Applicable To Common Shares5.7 B2.9 B
Interest Income20.2 M19.2 M
Net Interest Income-16.3 M-17.1 M
Change To Netincome-194.7 M-184.9 M

Maithan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Maithan Alloys. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Maithan Alloys position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Maithan Alloys' important profitability drivers and their relationship over time.

Use Maithan Alloys in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Maithan Alloys position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Maithan Alloys will appreciate offsetting losses from the drop in the long position's value.

Maithan Alloys Pair Trading

Maithan Alloys Limited Pair Trading Analysis

The ability to find closely correlated positions to Maithan Alloys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Maithan Alloys when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Maithan Alloys - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Maithan Alloys Limited to buy it.
The correlation of Maithan Alloys is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Maithan Alloys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Maithan Alloys moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Maithan Alloys can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Other Information on Investing in Maithan Stock

To fully project Maithan Alloys' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Maithan Alloys at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Maithan Alloys' income statement, its balance sheet, and the statement of cash flows.
Potential Maithan Alloys investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Maithan Alloys investors may work on each financial statement separately, they are all related. The changes in Maithan Alloys's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Maithan Alloys's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.