Mafia Trends Limited

Consumer Cyclical — Apparel Retail · BSE

₹4.75₹0.00 (0.00%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mafia Trends Limited operates as a specialty retail textile company in India.

IndustryApparel Retail

SectorConsumer Cyclical

Employees39

Annual revenue₹15 Cr

How does it make money?

Turns over ₹15 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 39 employees supports ₹38.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹38.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS 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 10.9% 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 ROE25.9%

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 +97% while net margin moved +17% 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+97%

Margin effect+17%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.8% is weak

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

88/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

4.4x

3Y Median

19.1x

40 monthly readings · mean 18.3x · range 5.1x–32.5x

Sector Median

69.9x

median of 3 sector peers

🟢Current valuation is approximately 77% below its 3y median of 19.1x. 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 94% below the peer median of 69.9x.

vs. its own history

Cheap

19.1x median over 40 months · -77%

vs. sector peers

Cheap

69.9x median of 3 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.0x

PEG

0.14

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 8.0% to 10.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 7.9% to 6.1% over 3 years.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹2 Cr to ₹4 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 1669% against revenue up 97% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 77% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 94% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 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?

Margins are being competed away
EBITDA margin has fallen from 7.9% to 6.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 1669% against revenue up 97%. 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 19% a year✓ 25.4% CAGR
Latest reported year was -4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹2 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.4x

Cheap

Cheap against the generic band

P/B Ratio

0.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.07

Profitable

Profitable on a per-share basis

ROE

5.8%

Weak

Weak capital efficiency

ROCE

10.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

-4.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-90.9%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.8%

Weak

Assets generate little profit

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.49

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

5.4 / 5.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹7 Cr	₹8 Cr	₹15 Cr	+25.4%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+15.2%
EBITDA Margin	7.9%	7.9%	10.2%	6.1%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+32.0%
EPS	₹0.54	₹0.75	₹0.92	—	—
ROE	2.8%	4.4%	5.1%	5.6%	—
ROCE	8.0%	9.3%	10.2%	10.9%	—
Total Debt	₹2 Cr	₹2 Cr	₹4 Cr	₹4 Cr	+23.6%
Free Cash Flow	-₹2 Cr	₹1 Cr	-₹2 Cr	₹0 Cr	—

🟢 Revenue has grown at 25.4% a year over 3 years.

🟢 EBITDA has grown at 15.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.9% to 6.1% over 3 years (-1.8 pts).

🟢 PAT (Net Profit) has grown at 32.0% a year over 3 years.

🟢 ROE has risen from 2.8% to 5.6% over 3 years (+2.8 pts).

🟢 ROCE has risen from 8.0% to 10.9% over 3 years (+2.9 pts).

🔴 Total Debt has grown at 23.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

39.9%

Corporate Actions

Ex-Dividend Date

03 May 2024

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Mafia Trends Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Mafia Trends shareholders approve all FY26 resolutions at 9th AGM

scanx.trade, 30 Sept

ACEVECTOR LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

3 Indian Penny Stocks With Low P E Ratios And Actual Profits

Simply Wall Street, 24 Aug

Mafia Trends appoints Yash Pujara as independent director

scanx.trade, 08 Oct

PIND HOSPITALITY LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 07 Oct

Watch Items

Revenue growth is negative (-4.9%) 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

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑