Why I Bought Maithan Alloys — and Why It Multiplied ~29×
Why I Bought Sangam Advisors (Now Waaree Renewables) — and Why It Multiplied ~312×
July 26, 2026
Why I Bought A.K. Spintex (Now Sunrakshakk Industries) — and Why It Multiplied ~10×
July 26, 2026
Maithan Alloys Ltd
I bought Maithan Alloys at a bonus-adjusted ₹33. It is a ferro-alloy producer — deeply cyclical, deeply unfashionable, the sort of stock growth investors sneer at. Today it trades near ₹965, a return of about 29 times. Here is why I bought a ‘boring metal’ company, and why it was one of the safest bets I ever made.
A low-cost leader with a fortress balance sheet
Maithan is one of India’s largest and lowest-cost producers of ferro and silico manganese — essential inputs for making steel — and it is heavily export-oriented with captive power to control its costs. In a commodity business, the lowest-cost producer with the strongest balance sheet wins every cycle: it survives the downturns that kill weaker rivals and harvests the upturns. That is precisely the profile I want in a cyclical.
The fundamental strengths that made me buy
- Bought below book value. The shares have traded well below their book value (~0.7×) on a single-digit P/E — deep value, with tangible assets protecting the downside.
- A fortress balance sheet. Almost debt-free with a large cash and treasury pile — the war chest that lets it outlast every rival through the cycle.
- Genuine cost leadership. Among the lowest-cost producers in the industry, with captive power — the single most important edge in any commodity business.
- Real, sizeable profits. FY26 revenue of ~₹2,173 crore and net profit of ~₹441 crore — this is a serious, profitable industry leader, not a penny cyclical.
- A dividend that pays you to wait. A steady dividend rewards patience while the market eventually recognises the value.
Why deep value with safety wins
The beauty of Maithan was the asymmetry: I was buying a cash-rich, low-cost industry leader for less than the value of its own assets. The downside was cushioned by tangible book value and a mountain of cash; the upside was a full commodity up-cycle and the eventual re-rating of a business the market had written off as “just a cyclical.” When the odds are stacked like that, you buy — and you wait.
Don’t take my word for it — it’s on the public record
My original buy call on Maithan Alloys, at ₹33 after adjusting for its 1:1 bonus, is documented on my public Facebook profile. I bought it when “ferro alloys” was a phrase that made investors change the subject.
“In a commodity business, the lowest-cost producer with the strongest balance sheet doesn’t just survive the cycle — it owns it.”
The lesson for you
Maithan is my reminder that safety and huge upside are not opposites. A cash-rich, low-cost leader bought below book value gives you both: a protected downside and a wide-open upside. The market’s fear of ‘cyclicals’ is exactly what let me buy a fortress at a discount.
Want to catch stocks like these before they move?
Explore how you can work with me — the same value-investing framework that found these winners, now applied for you.
Disclaimer: This article is a personal account of my own past investment decision, shared for educational purposes only. It is not a recommendation to buy or sell this or any stock at current prices. All return figures are calculated to recent market prices and adjusted for stock splits and bonuses; past performance is not a guarantee of future returns. Equity investments are subject to market risks. Please do your own research or consult your financial adviser before investing.
