MFL India Limited

Industrials — Trucking · BSE

₹0.41₹0.00 (0.00%)

DalalBaazaar Score

28 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

MFL India Limited, a transport and logistics company, provides logistics and supply chain services in India. It owns a fleet of mixed high-volume/heavy-weight cargo carriers, as well as high-capacity trucks and trailers.

IndustryTrucking

SectorIndustrials

Annual revenue₹66 Cr

How does it make money?

Turns over ₹66 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation.

EBITDA margin0.4%

Net margin2.4%

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of -8.2% 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.

ROCE-8.2%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +380% while net margin moved +8102% 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+380%

Margin effect+8102%

DalalBaazaar Score

28/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

3.2x

3Y Median

5495.5x

40 monthly readings · mean 4953.7x · range 9.7x–7117.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 100% below its 3y median of 5495.5x. 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 96% below the peer median of 88.8x.

vs. its own history

Cheap

5495.5x median over 40 months · -100%

vs. sector peers

Cheap

88.8x median of 3 peers · -96%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

3.2x

P/B

—

EV/EBITDA

141.2x

PEG

0.00

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Valuation below its historical average
At 3.2x the stock trades 100% below its own median of 5495.5x.

🔴 What Needs Attention3

Debt is rising
Total debt is up 61% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 61% over 3 years, from ₹15 Cr to ₹24 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -9408.5x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 355.0x to -9408.5x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.4%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 100% 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 96% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 90.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
4 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 52% a year✓ 68.7% CAGR
Latest reported year was -5.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 90.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -9408.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

3 good · 4 neutral · 4 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.2x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.13

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-8.2%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-5.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

290.5%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.41

Operating Margin

-0.3%

Weak

Thin margins leave little room for error

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹54 Cr	₹52 Cr	₹66 Cr	+68.7%
EBITDA	₹0 Cr	-₹2 Cr	₹2 Cr	₹0 Cr	+40.8%
EBITDA Margin	0.7%	-2.9%	3.1%	0.4%	—
PAT (Net Profit)	₹0 Cr	-₹2 Cr	-₹1 Cr	₹2 Cr	+633.1%
EPS	₹0	₹-0.07	₹-0.02	₹0.04	+611.6%
ROCE	0.0%	-19.0%	1.2%	-8.2%	—
Total Debt	₹15 Cr	₹15 Cr	₹18 Cr	₹24 Cr	+17.2%
Free Cash Flow	-₹15 Cr	₹0 Cr	-₹5 Cr	-₹5 Cr	—

🟢 Revenue has grown at 68.7% a year over 3 years.

🟢 EBITDA has grown at 40.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.4% over 3 years.

🟢 PAT (Net Profit) has grown at 633.1% a year over 3 years.

🟢 EPS has grown at 611.6% a year over 3 years.

🔴 ROCE has fallen from 0.0% to -8.2% over 3 years (-8.2 pts).

🔴 Total Debt has grown at 17.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹27 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

0.4%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 negative5 general

MFL India sets Sept 29 AGM; approves ₹12 crore related-party logistics deals

scanx.trade, 26 Aug

Hindustan Zinc signs transportation contract with MFL India

Business Standard, 09 Sept

MFL70726 Share price NSE | Mfl-7-7-29-ncd Stock price BSE Today

Samco, 18 Jul

MFL India shareholders approve FY26 financials, MD re-appointment

scanx.trade, 29 Sept

Hindustan Zinc: Vedanta Releases 5.15 Crore Pledged Shares

Sahi, 22 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

MFL Group: Sustained Investments Put India’s Wire & Cable Market on a Fast Track

Wire & Cable India, 27 Mar

Watch Items

Revenue growth is negative (-5.8%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong14.9/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

MFL India Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 52% a year68.7% CAGR
✓EBITDA margin holds above -2%0.4%
✗Debt / EBITDA falls below 3x90.6x
✗Free cash flow remains positive-₹5 Cr
✗Interest cover stays above 3x-9408.5x