Cochin Minerals and Rutile Limited

Basic Materials — Other Industrial Metals & Mining · BSE

₹286.50−₹0.85 (−0.30%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Cochin Minerals and Rutile Limited engages in the manufacturing, marketing, and research activities in the mineral processing sector in India. Its primary product is synthetic rutile, which is used as raw material to produce titanium pigment and titanium sponge/metal.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees215

Annual revenue₹287 Cr

How does it make money?

Turns over ₹287 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 215 employees supports ₹1.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.34 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?Little sign of one

Returns on capital of 10.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -35% while net margin moved -66% 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-35%

Margin effect-66%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.5% a year
✗ Profit has declined at 39.5% a year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

68/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

10.4x

3Y Median

9.7x

40 monthly readings · mean 14.0x · range 3.5x–33.4x

Sector Median

12.3x

median of 3 sector peers

🟡Currently trading close to its 3y median of 9.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 16% below the peer median of 12.3x.

vs. its own history

Fair

9.7x median over 40 months · +7%

vs. sector peers

Fair

12.3x median of 3 peers · -16%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 38.6% to 7.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 48.5% to 10.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.61x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.1 points, from 17.0% to 9.0%.
🔴Inventory building faster than salesFinancial
Inventory up 239% against revenue up -35% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 26% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 78% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 17.0% to 9.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.61x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 38.6% to 7.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1EBITDA margin holds above 7%✓ 9.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 9.7x✓ 10.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹224 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.4x

Cheap

Cheap against the generic band

P/B Ratio

1.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹27.61

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

10.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.61x

High

High leverage

Revenue Growth (YoY)

74.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

279.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.79%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹25 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.8%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

2.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.02

Market-like

Moves roughly in line with the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

297.1 / 301.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹444 Cr	₹300 Cr	₹316 Cr	₹287 Cr	-13.5%
EBITDA	₹76 Cr	₹41 Cr	₹39 Cr	₹26 Cr	-30.2%
EBITDA Margin	17.0%	13.5%	12.4%	9.0%	—
PAT (Net Profit)	₹56 Cr	₹9 Cr	₹24 Cr	₹13 Cr	-39.5%
EPS	₹72.07	₹10.98	₹30.09	₹15.97	-39.5%
ROE	38.6%	5.8%	14.2%	7.3%	—
ROCE	48.5%	25.4%	22.3%	10.8%	—
Total Debt	₹5 Cr	₹6 Cr	₹11 Cr	₹6 Cr	+8.1%
Free Cash Flow	-₹4 Cr	₹4 Cr	₹3 Cr	₹25 Cr	—

🔴 Revenue has shrunk at 13.5% a year over 3 years.

🔴 EBITDA has shrunk at 30.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.0% to 9.0% over 3 years (-8.1 pts).

🔴 PAT (Net Profit) has shrunk at 39.5% a year over 3 years.

🔴 EPS has shrunk at 39.5% a year over 3 years.

🔴 ROE has fallen from 38.6% to 7.3% over 3 years (-31.3 pts).

🔴 ROCE has fallen from 48.5% to 10.8% over 3 years (-37.7 pts).

🔴 Total Debt has grown at 8.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹25 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹247 Cr

Total Liabilities

₹75 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹31 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.3%

Corporate Actions

Dividend Rate

₹8

Ex-Dividend Date

18 Sept 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

1 positive2 mixed3 general

Kerala HC stays ₹120.26 Cr GST notice on Cochin Minerals

scanx.trade, 26 Sept

Cochin Minerals & Rutile Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Cochin Minerals submits scrutinizer report for 37th AGM voting results

scanx.trade, 25 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Cochin Minerals & Rutile Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Cochin Minerals and Rutile Q1 results FY27: PAT Rs 12 Cr, Revenue

Univest, 06 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Rs. 257.54/sh Dividend Stocks Today: Cochin Shipyard and 94 more Stocks to Watch on September 18

Goodreturns, 18 SeptCapital return

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

Watch Items

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 · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑