Mitshi India Limited

Consumer Defensive — Food Distribution · BSE

₹14.22+₹0.20 (+1.43%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mitshi India Limited trades in fruits and vegetables products in India. The company was formerly known as Dera Paints and Chemicals Limited and changed its name to Mitshi India Limited in November 2015. Mitshi India Limited was founded in 1976 and is based in Mumbai, India.

IndustryFood Distribution

SectorConsumer Defensive

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. 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 0.2% 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.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -64% while net margin moved -96% 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-64%

Margin effect-96%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 28.9% a year
✗ Profit has declined at 76.1% a year
✗ Latest-year revenue growth of -51.5% is below the longer-term trend — momentum is fading
✗ Profit fell 80.6% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

25/ 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

N/A

No P/E — the company is lossmaking

EV/EBITDA

97.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -27.0% to 4.6% over 3 years.
Return on capital is rising
ROCE has improved from -28.3% to 0.2%.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 19.7% to 0.3% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 141% against revenue up -64% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 99% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -27.0% to 4.6%. 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 141% against revenue up -64%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 19.7% to 0.3%. 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 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

1 good · 3 neutral · 7 weak

Market Cap

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

4.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.01

Loss-making

Negative earnings per share — the business is losing money

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.2%

Weak

Low return on total capital employed

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

-51.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-80.6%

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

Operating Margin

1.0%

Weak

Thin margins leave little room for error

Net Margin

0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

21.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.24

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

14.0 / 13.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹20 Cr	₹5 Cr	₹3 Cr	-28.9%
EBITDA	-₹2 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EBITDA Margin	-27.0%	0.8%	0.2%	4.6%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-76.1%
EPS	₹0.57	₹0.14	₹0.04	₹0.01	-74.0%
ROE	19.7%	4.5%	1.3%	0.3%	—
ROCE	-28.3%	5.6%	1.8%	0.2%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	₹1 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 28.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹2 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -27.0% to 4.6% over 3 years (+31.6 pts).

🔴 PAT (Net Profit) has shrunk at 76.1% a year over 3 years.

🔴 EPS has shrunk at 74.0% a year over 3 years.

🔴 ROE has fallen from 19.7% to 0.3% over 3 years (-19.4 pts).

🟢 ROCE has risen from -28.3% to 0.2% over 3 years (+28.5 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

42.6%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed1 negative4 general

Mitshi India accepts CS Umesh Mistry resignation effective Oct 12, 2026

scanx.trade, 12 Oct

Compare DEVIKA FINST with DERA PAINTS

Equitymaster, 14 Oct

Mitshi India Ltd Downgraded to Strong Sell Amid Weak Fundamentals and Bearish Technicals

MarketsMojo, 29 SeptAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Bulk deals: Bandhan Mutual Fund picks up 0.57% stake in Updater Services

Moneycontrol.com, 07 May

Mitshi India receives Draft Letter of Offer for 26% stake acquisition by Bajaj

scanx.trade, 23 JulM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Compare FRONTLINE BUSINESS with DERA PAINTS

Equitymaster, 13 Oct

Watch Items

Revenue growth is negative (-51.5%) 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.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 4 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑