MCON Rasayan India Limited

Sector n/a · NSE

₹186.35+₹6.30 (+3.50%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

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

How does it make money?

Turns over ₹65 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.2% 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.

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 +110% while net margin moved +28% 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+110%

Margin effect+28%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

35/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

20.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 8.1% to 11.9% over 3 years.
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 11.7% to 14.2%.
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

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 115% over 3 years, from ₹8 Cr to ₹18 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 187% against revenue up 110% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 356% against revenue up 110% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.1% to 11.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 187% against revenue up 110%. 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
3 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 21% a year✓ 28.1% CAGR
Latest reported year was 28.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹137 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

28.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

33.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

48.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

40.4 / 42.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹42 Cr	₹51 Cr	₹65 Cr	+28.1%
EBITDA	₹3 Cr	₹5 Cr	₹6 Cr	₹8 Cr	+45.4%
EBITDA Margin	8.1%	12.8%	12.5%	11.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+38.9%
EPS	₹2.62	₹3.56	₹3.39	—	—
ROE	8.5%	14.3%	6.9%	8.4%	—
ROCE	11.7%	19.8%	11.4%	14.2%	—
Total Debt	₹8 Cr	₹16 Cr	₹20 Cr	₹18 Cr	+29.0%
Free Cash Flow	-₹10 Cr	-₹6 Cr	-₹16 Cr	₹2 Cr	—

🟢 Revenue has grown at 28.1% a year over 3 years.

🟢 EBITDA has grown at 45.4% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 11.9% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 38.9% a year over 3 years.

🟡 ROE has held roughly flat at 8.4% over 3 years.

🟢 ROCE has risen from 11.7% to 14.2% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 29.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹77 Cr

Total Liabilities

₹40 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹2 Cr

Recent News

6 general

MCON Rasayan India Limited Secures Rs. 2.50 Crore Ad Hoc Cash Credit Facility from Axis Bank

scanx.trade, 28 Apr

Slammed 28% MCON Rasayan India Limited (NSE:MCON) Screens Well Here But There Might Be A Catch

Simply Wall Street, 26 Sept

MCON Stock Price and Chart — NSE:MCON

TradingView, 12 Oct

MCON Rasayan India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

MCON Rasayan IPO Fully Subscribed First Day Within Hours Of Opening

India.com, 06 Mar

India’s extensive infrastructure development fuel demand for construction chemicals: MCON Rasayan

The Economic Times, 23 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation

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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑