Mahamaya Steel Industries Ltd (NSE: MAHASTEEL) witnessed a remarkable 26 per cent surge in its share price over the past month, reaching a 52-week high of ₹328.85 on May 28, 2025. This rally has propelled the stock’s 12-month gain to an impressive 218 per cent, drawing significant investor attention.Â
The company’s robust Q4 FY25 performance has been a key driver of this upward momentum. Mahamaya Steel reported a 19.51 per cent year-on-year increase in net sales, totaling ₹236.17 crore, and a substantial 278.32 per cent rise in net profit to ₹5.41 crore for the quarter ended March 2025. These figures underscore the company’s strong operational performance in recent months.
However, the rapid appreciation in share price has raised concerns among analysts regarding potential overvaluation. The stock’s trailing twelve-month price-to-earnings (P/E) ratio stands at a lofty 92.7, significantly higher than the sector average of 18.76. Additionally, the Relative Strength Index (RSI) has reached 84, indicating that the stock is in overbought territory.
Given these indicators, market experts advise investors to exercise caution. While the company’s recent financial performance is commendable, the elevated valuation metrics suggest that the stock may be priced ahead of its fundamentals. Investors are encouraged to conduct thorough due diligence and consider the potential risks associated with such rapid price movements.
