India’s power transmission and distribution (T&D) sector is in the middle of a structural growth cycle. Backed by government schemes like the Revamped Distribution Sector Scheme (RDSS), the push for 24×7 electricity access, and the integration of large-scale renewables, demand for transformers, cores, and related electrical components has reached a new peak.
Against this backdrop, Mangal Electrical Industries (MEIL), a Jaipur-based mid-cap power infrastructure player, is coming to the primary market with an INR 400 crore IPO (20 – 22 Aug 2025) priced between INR 533–561 per share. Unlike many small-cap electrical players that remain confined to a single niche, MEIL’s integrated presence — spanning CRGO processing, transformer manufacturing, circuit breakers, amorphous cores, and EPC projects — makes its business model relatively unique in the segment.
Still, for benchmarking purposes, two listed peers provide meaningful context: Vilas Transcore (VTL), a specialist in transformer components, and Jay Bee Laminations (JBLL), a CRGO-focused laminations manufacturer now diversifying into higher kV transformers. This Mangal Electrical vs Vilas Transcore vs Jay Bee peer comparison across financials, efficiency metrics, and valuations helps situate the company’s competitive positioning as it seeks to tap public markets.
2. Company Overview
Founded in Jaipur, MEIL has steadily grown into a diversified electrical solutions company with a mix of raw material processing, midstream components, and finished equipment.
- Manufacturing Footprint: 5 units across Rajasthan, covering CRGO cores, transformers, circuit breakers, and amorphous cores.
- Capacity & Utilisation (FY25):
- CRGO: 16,200 MT capacity; 57% utilisation.
- Transformers: 10,22,500 KVA capacity; 95% utilisation — highest across its product lines.
- Oil-immersed Circuit Breakers (ICBs): 75,000 units capacity; 80% utilisation.
- Amorphous cores: 2,400 MT capacity; 59% utilisation.
High transformer utilisation, nearing saturation, is a key reason behind the planned Unit IV expansion funded via IPO proceeds.
- Order Book & Clientele: INR 294.20 crore order book (June 2025) and exports to the USA, UAE, Netherlands, Oman. Domestically, clients include state utilities (Ajmer Vidyut Vitran Nigam) and private sector players like Voltamp.
- EPC Presence: Four turnkey substation projects completed, creating long-term relationships with utilities.
3. Financial Performance: Mangal Electrical vs Vilas Transcore vs Jay Bee
The FY25 numbers show a clear differentiation in scale and profitability:
| Metric (FY25) | Mangal Electrical | Vilas Transcore | Jay Bee Laminations |
|---|---|---|---|
| Revenue | 549.4 | 353.1 | 367.5 |
| EBITDA | 81.8 | 44.6 | 43.0 |
| EBITDA Margin | 14.9% | 12.6% | 11.7% |
| PAT | 47.3 | 34.2 | 25.4 |
| Net Margin | 8.6% | 9.7% | 6.9% |
- Revenue Leadership: MEIL’s topline (~INR 550 Cr) is nearly 50% higher than either VTL or JBLL, underlining its scale advantage.
- Margin Recovery: FY24 was margin-squeezed (EBITDA 9.5%) due to volatile CRGO prices; FY25’s 14.9% margin shows pricing power and operational leverage.
- Profitability: While VTL edges out MEIL on net margin (9.7% vs 8.6%), JBLL trails at 6.9%. On absolute PAT, MEIL leads comfortably.
MEIL combines scale and competitive margins, offering a balance between VTL’s efficiency and JBLL’s niche focus.
4. Mangal Electrical vs Peers: Return Ratios
Return metrics reinforce MEIL’s strong FY25 performance:
| Metric (FY25) | Mangal Electrical | Vilas Transcore | Jay Bee Laminations |
|---|---|---|---|
| RoNW (%) | 34.1% | 15.3% | 24.1% |
| RoCE (%) | 25.4% | 17.0% | 24.3% |
- RoNW: MEIL’s 34.1% is the highest among peers, a notable rebound from 20% in FY24. This was driven by high transformer capacity utilisation and improved cost absorption.
- RoCE: At 25.4%, MEIL matches JBLL’s 24.3%, and both are ahead of VTL (17%).
For every rupee of capital deployed, MEIL is generating superior returns, placing it closer to a growth-oriented profile rather than a defensive SME stock.
5. Balance Sheet Health & Liquidity
A company’s balance sheet often reveals strengths and weaknesses not immediately obvious from topline or profit numbers. On this front, MEIL presents a mixed picture when compared to its listed peers.
| Metric (FY25) | Mangal Electrical | Vilas Transcore | Jay Bee Laminations |
|---|---|---|---|
| Debt-Equity (x) | 0.92 | 0.04 | 0.16 |
| Current Ratio | 1.57 | 4.17 | 2.64 |
| Working Capital Days | 131 | 91 | 99 |
- Leverage: MEIL’s debt-equity ratio of 0.92x is significantly higher than both VTL (0.04x, almost debt-free) and JBLL (0.16x). This reflects the company’s working capital stress, as a large chunk of its revenues comes from state distribution companies (DISCOMs), which are notorious for payment delays. For a mid-cap like MEIL, debt acts as a bridge to fund receivables, but it also inflates finance costs.
- Liquidity Position: The current ratio of 1.57 signals adequate coverage of short-term obligations, but is far below VTL’s cushion of 4.17 and JBLL’s 2.64.
Note: The IPO allocation of ~INR 101 crore towards debt repayment will be critical in reshaping MEIL’s balance sheet. Post-issue, leverage is expected to decline closer to 0.5x, strengthening creditworthiness and freeing up cash flows. If execution goes as planned, MEIL’s balance sheet will begin to resemble its lighter-geared peers, removing a key investor concern.
6. Mangal Electrical vs Vilas Transcore vs Jay Bee: Valuation Analysis
Valuations represent how the market prices future growth expectations. On this count, Mangal Electrical trades somewhere between premium and fair.
| Metric (FY25) | Mangal Electrical | Vilas Transcore | Jay Bee Laminations |
|---|---|---|---|
| P/E (x) | 32.8 | 37.6 | 19.8 |
| Price/Sales (x) | 2.82 | 3.66 | 1.37 |
| Price/Book (x) | 7.09 | 4.47 | 3.43 |
| EV/EBITDA (x) | ~12.0 | 22.2 | 12.0 |
- Price-to-Earnings: MEIL at 32.8x trades at a discount to VTL (37.6x) but commands a premium over JBLL (19.8x). This suggests the market views Mangal Electrical as a growth story.
- Price-to-Sales: MEIL’s 2.82x is again mid-way — lower than VTL’s 3.66x, showing investors are willing to pay less per unit of sales compared to VTL, but well above JBLL’s 1.37x, which reflects its niche positioning and smaller scale.
- Price-to-Book: At 7.09x, MEIL commands the highest P/B among peers, indicating markets assign a premium to its integrated model and higher RoNW. Investors are paying more than 7 times book value — a steep multiple for a mid-cap, but one justified by returns and growth prospects.
7. Mangal Electrical vs Peers: Strategic Positioning
Each company’s strategic focus sheds light on its business model differentiation:
- Mangal Electrical (MEIL):
- Operates across the full spectrum: CRGO processing, transformers, circuit breakers, amorphous cores, and EPC projects.
- Export markets provide a hedge against domestic cyclicality.
- Near-saturated transformer capacity (95% utilisation in FY25) makes its upcoming expansion not just growth-driven but also necessary.
- Higher leverage is a risk, but post-IPO deleveraging could reposition MEIL as a cleaner, scalable play.
- Vilas Transcore (VTL):
- Specialises in critical transformer components.
- Balance sheet is its biggest strength — near debt-free, high current ratio, steady profitability.
- However, revenue scale is smaller than MEIL, and growth is relatively steady rather than aggressive.
- Jay Bee Laminations (JBLL):
- Specialist in CRGO laminations, a niche but essential segment.
- Strong RoNW (~24%) and ongoing diversification into higher kV cores present growth potential.
- More conservative balance sheet than MEIL, but lacks MEIL’s diversification.
Note: MEIL is the broad-spectrum integrated player, VTL the conservative balance sheet specialist, and JBLL the focused niche operator. For investors, MEIL offers higher growth leverage, albeit with higher execution risks.
Verdict
MEIL stands out as a growth-oriented mid-cap proxy for India’s grid modernisation. With policy tailwinds (RDSS, renewable integration), improving utilisation, and a deleveraging balance sheet, it is positioned attractively compared to peers.
While fundamentals justify a premium, risks around raw material imports (CRGO), working capital, and execution of expansion plans mean investors should temper expectations. In short, MEIL is not a defensive stock but a power sector growth proxy — fairly valued and well placed to benefit from India’s energy transition.
Conclusion
Mangal Electrical peer comparison highlights three critical takeaways:
- Scale & Returns: MEIL outpaces peers on revenue scale and absolute profits, while delivering top-tier return ratios (RoNW 34.1%, RoCE 25.4%).
- Balance Sheet: Higher leverage and longer working capital cycles remain pain points, but IPO proceeds are aimed at course-correction.
- Valuations: At 32.8x P/E and 7.09x P/B, MEIL is priced for growth, not value. Relative to peers, its multiples reflect investor confidence in its integrated model and expansion prospects.
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Critical review with comparison among companies