20 Microns Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹191.25−₹1.17 (−0.61%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of 20 Microns Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

20 Microns Limited manufactures and markets micronized industrial minerals and specialty chemicals primarily in India and internationally.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees413

Annual revenue₹952 Cr

How does it make money?

Turns over ₹952 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 413 employees supports ₹2.30 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE12.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +36% while net margin moved +18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+36%

Margin effect+18%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 13.8% is moderate

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.0x

3Y Median

12.1x

40 monthly readings · mean 13.1x · range 7.5x–23.0x

Sector Median

12.3x

median of 3 sector peers

🟢Current valuation is approximately 18% below its 3y median of 12.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 19% below the peer median of 12.3x.

vs. its own history

Fair

12.1x median over 40 months · -18%

vs. sector peers

Fair

12.3x median of 3 peers · -19%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.2x

PEG

0.59

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.3% to 12.8% over 3 years.
Cash generation is improving
Free cash flow is up 52% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 81% against revenue up 36% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.3% to 12.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹77 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 81% against revenue up 36%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.7% CAGR
Latest reported year was -1.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹77 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹675 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

1.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹19.19

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

18.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

-1.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

5.4%

Modest

Slow profit growth

Dividend Yield

0.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹77 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.0%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

206.6 / 206.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

23.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹701 Cr	₹776 Cr	₹912 Cr	₹952 Cr	+10.7%
EBITDA	₹79 Cr	₹101 Cr	₹114 Cr	₹122 Cr	+15.6%
EBITDA Margin	11.3%	13.1%	12.5%	12.8%	—
PAT (Net Profit)	₹42 Cr	₹56 Cr	₹62 Cr	₹67 Cr	+16.9%
EPS	₹11.85	₹15.89	₹17.68	₹18.94	+16.9%
ROE	14.2%	15.9%	14.5%	13.8%	—
ROCE	19.5%	21.5%	19.0%	18.9%	—
Total Debt	₹108 Cr	₹122 Cr	₹165 Cr	₹156 Cr	+13.1%
Free Cash Flow	₹51 Cr	₹35 Cr	-₹45 Cr	₹77 Cr	+15.1%

🟢 Revenue has grown at 10.7% a year over 3 years.

🟢 EBITDA has grown at 15.6% a year over 3 years.

🟢 EBITDA Margin has risen from 11.3% to 12.8% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 16.9% a year over 3 years.

🟢 EPS has grown at 16.9% a year over 3 years.

🟡 ROE has held roughly flat at 13.8% over 3 years.

🟡 ROCE has held roughly flat at 18.9% over 3 years.

🔴 Total Debt has grown at 13.1% a year over 3 years.

🟢 Free Cash Flow has grown at 15.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹756 Cr

Total Liabilities

₹269 Cr

Cash & Equivalents

₹74 Cr

Operating Cash Flow

₹104 Cr

Capex

-₹26 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.2%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

17 Jul 2026

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

2 positive2 mixed2 general

Is Now The Time To Put 20 Microns (NSE:20MICRONS) On Your Watchlist?

Simply Wall Street, 24 Jun

20 Microns Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

20 Microns targets 20% market share by FY2030, projects 18% revenue growth

scanx.trade, 31 May

20 Microns Limited (NSE:20MICRONS) Looks Interesting, And It's About To Pay A Dividend

Simply Wall Street, 13 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Is 20 Microns Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 13 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

20 Microns final dividend: Ex-Date Tomorrow; Rs 1.25 per share payout due

Moneycontrol.com, 16 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-1.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑