Permanent Magnets Ltd\

CMp = 214

Mcap = 184 cr

PE = 13.5

ABOUT

Permanent Magnets is one of the flagship Companies of Taparia Group, Mumbai and one of the
leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of
electricity meters in the world. PML has started with supplies of Gas meters parts and accessories.

PML is part of Taparia Group. Taparia Group has a turnover of aboutUSD 800 million. PML
manufactures and provides solutions and components to varied industries like Automobiles (ICE and
EV/HEV), Aerospace, Defence, Medical, Safety, Energy meters.

In order to keep abreast of latest manufacturing technologies PML had technical collaborations with
“Centro Magneti Permanenti” (Italy) in 1973, with Dowa Mining (Japan) and Sumitomo (Japan) in
1983. In the recent past, PML and mag Lab (Switzerland) have collaborated together for the
development and commercialization of innovative products.

Today, PML operates through the 4 divisions viz. Magnets and Magnetic Assemblies, Hiperm,
Shunts, and Current Transformers

Magnets and Magnetic Assemblies:

PML is among the leading producers of Alnico Cast Magnets and Yoke Assemblies in the world.
PML’s magnets are utilized extensively in key business sectors like electronics, power meters,
automobile industries, telecommunication, defense, space research, aeronautics, rail transport and
power generation.

PML is the leading Magnetic Assemblies maker in India offering a broad range of Industrial
Application Magnetic Devices like Magnetic Separators and Filters to split out iron along with other
magnetic impurities, Magnetic Lifters to lift alloy plates, sheets and various other metallic products
and Magnetic Holding Devices to execute grinding along with other machining actions.
Hiperm:
Dedicated to manufacturing of soft magnetic alloy components such as flux concentrator, Shields,
Cores, Relays.

With unique in house facilities like High Speed Punching and Stacking Power Presses, Dry Hydrogen
heat treatment furnaces PML delivers to almost all major international and domestic players in
Electricity metering, Electric and Hybrid Automotive, medical, Aerospace, Defence industries.

Internationally acclaimed measurement equipment such as Koerzimat, B-H Loop Plotter, Flatness
testers etc enables to maintain top notch quality of the products being delivered.

Shunts:
PML shunts, shunt assemblies and brass terminals are widely used in Energy meters, Gas meters,
conventional and Electric Vehicles.

Nano-crystalline and amorphous Cores, Current Transformers (CTs):

PML energy meter CTs and nano-crystalline and amorphous cores are used in energy meter and other
applications.

MANAGEMENT DISCUSSION AND ANALYSIS

The company mainly supplies products to the Electricity meter, Automotive, Gas meter industry. The
recent Covid crisis has

reduced the demand for automotive parts in India. The demand in the USA and European markets is
still strong.

Energy and Gas metering:

Global Smart Meter Market was valued at USD 22 Billion in the year 2019. Rise in awareness of
maintaining energy efficiency and
reduction of carbon emissions, extensive research and development in the smart grid technologies and
growth of next generation

meters, need for devices that enables real time meter reading and two way communication between
the utilities and consumers

and rapid industrialization in developing economies have been anticipated to infuse growth in the
market for Smart Meter during

the forecasting period of 2020-2025.

Indian Market and the need for Smart Meters:

Social distancing regulations and the nationwide lockdown have prohibited DISCOMs from
physically collecting electricity bills as

conventional metering systems require readings to be checked in person. This, along with its other
problems, including aggregate

technical and commercial (AT&C) losses, low tariffs and other internal inefficiencies, has left
DISCOMs in a tough spot financially.

Smart meters could be the much-needed solution to most of these problems. They require minimal
direct human interaction and

have other widespread benefits that will be felt across the entire power value chain.

While the traditional electricity meters measure the power consumption of a home or business, smart
meters can record energy

usage in 15-minute intervals or at least hourly and transmit data to the utilities constantly. Most
importantly, smart meters enable

two-way communication with the utility and the home/business.

Electric Vehicles:
The global electric vehicle market has taken a huge leap forward in the past decade.
Forecast:
By 2030, the global electric vehicle stock (excluding two/three-wheelers) is expected to reach nearly
140 million vehicles and will

account for 7% of the global vehicle fleet. This represents a good opportunity for PML to develop
more products and sell in the

international market.

Manufacturing sites:
The Company is operating from 3 manufacturing sites operating in Mira Road, Mumbai, Maharashtra.
All plants are following

environmental and safety standards.

COMPANY’S STRENGTH AND GROWTH DRIVERS:

PML’s knowledge and experience of metals, metallurgy and assemblies is creating many
opportunities for diversification. As the

number of projects are increasing, so is the chance to enter new products with related technologies.
PML is focusing on high value

added products.

RISK AND CONCERN:

Macroeconomic Risk : Risk of slowing Indian and global economy triggered by COVID -19
pandemic.

Cyber security Risk : Increased global cyber security threats and failure of security systems resulting
from human or technological

errors.

Operating Risk: Unavoidable delays, Internal as well as external.

Technology Risk: The use of obsolete technology as well as threat to data security could affect the
Company’s business.

The Company has established the process of identifying, analyzing and treating risks, which could
prevent the Company from

effectively achieving its objectives. It ensures that all the risks are timely defined and mitigated in
accordance with the well

structured risk management Process.

Financials:

 Promoter Holding More than 67%

 Almost Debt Free Company With 0.03 Debt to Equity
 Wonderful Profit Growth Of last 3&5 year
 Decent Sales Growth
 ROCE&ROE last 5 year 33%
 NPM 13.4% last year
 Return on investment 30%
 PEG 0.13
 Sales Improve
 Margins improve
 PBT AND PAT Improve in last 3 Year

 No equity Dilution in last 10 year

 Reserves improve
 Almost Reduce debt to Zero

 Profit comes into book to Cash

 Essential Checks

SWAT Analysis
Now Concern:
 Tread Receivables are increase
 Debtors days Also More Near 100Days Which was high
Technical Short:

 In Uptrend HH-HL
 Above 50-100-200 DMA
 Technically Multiyear Breakout

Sources:

 https://www.pmlindia.com/
 Company’s annual Report
 https://www.screener.in/
 https://trendlyne.com
 https://in.tradingview.com/chart
 https://www.valueresearchonline.com