Milton Industries Limited

Sector n/a · NSE

₹39.70₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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 modest growth. 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, 7:47 pm

Understanding the Business

The 60-second version of Milton Industries 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 ₹46 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 7.7% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -23% while net margin moved -19% 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-23%

Margin effect-19%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.2% a year
✗ Profit has declined at 14.4% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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.

Weak on business quality and not cheap enough to compensate.

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

16.3x

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 6.7% to 3.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.2% to 7.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹7 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?

The debt load needs earnings to hold up
Debt is 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 6.7% to 3.6%. 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.
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 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

3 good · 6 neutral · 2 weak

Market Cap

₹67 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

3.6%

Weak

Weak capital efficiency

ROCE

7.7%

Weak

Low return on total capital employed

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

5.3%

Modest

Modest growth

Profit Growth (YoY)

50.0%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

34.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

2.68

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

35.5 / 36.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹60 Cr	₹89 Cr	₹44 Cr	₹46 Cr	-8.2%
EBITDA	₹6 Cr	₹7 Cr	₹4 Cr	₹5 Cr	-4.9%
EBITDA Margin	10.0%	8.2%	9.8%	11.1%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹1 Cr	₹2 Cr	-14.4%
EPS	₹1.69	—	₹0.7	—	—
ROE	6.7%	6.9%	2.5%	3.6%	—
ROCE	10.2%	12.2%	6.2%	7.7%	—
Total Debt	₹16 Cr	₹15 Cr	₹20 Cr	₹17 Cr	+0.9%
Free Cash Flow	-₹9 Cr	₹2 Cr	-₹4 Cr	₹7 Cr	—

🔴 Revenue has shrunk at 8.2% a year over 3 years.

🔴 EBITDA has shrunk at 4.9% a year over 3 years.

🟢 EBITDA Margin has risen from 10.0% to 11.1% over 3 years (+1.1 pts).

🔴 PAT (Net Profit) has shrunk at 14.4% a year over 3 years.

🔴 ROE has fallen from 6.7% to 3.6% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 10.2% to 7.7% over 3 years (-2.5 pts).

🟡 Total Debt has been broadly flat over 3 years (0.9% a year).

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹75 Cr

Total Liabilities

₹26 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹1 Cr

Recent News

6 general

Top 15 Low-Price Stocks In India To Buy In October 2026

Samco, 17 Oct

Milton Industries Ltd

Equitypandit, 20 Feb

5% Price Band Stocks, June 29, 2026: Aurigrow, MOS in Focus

HDFC Sky, 29 Jun

Milton Industries Limited Submits SDD Compliance Certificate for FY26 to NSE

scanx.trade, 24 Apr

MANILAM INDUSTRIES IND Lower Circuit Today: Price, Data and Peers

Univest, 14 Oct

Automotive Oil Drain Pans Market Size, Share, Trends 2036

Future Market Insights, 22 Sept

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

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑