Mittal Life Style Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹0.70+₹0.01 (+1.45%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

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, 6:07 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 Mittal Life Style Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mittal Life Style Limited engages in supply of bottom weight fabrics and denims primarily in India. It provides fashion fabrics, cotton canvas denims, dupion bottom fabrics, polyester and cotton fabrics, knit fabrics to textile industry.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees14

Annual revenue₹91 Cr

How does it make money?

Turns over ₹91 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 14 employees supports ₹6.53 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.7%

Net margin2.5%

Revenue / employee₹6.53 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 6.6% 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.

ROCE6.6%

ROE3.6%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +44% while net margin moved +203% 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+44%

Margin effect+203%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.6% 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

14.0x

3Y Median

30.4x

40 monthly readings · mean 49.6x · range 13.0x–127.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 3y median of 30.4x. 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 80% below the peer median of 69.2x.

vs. its own history

Cheap

30.4x median over 40 months · -54%

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.0x

P/B

0.48x

EV/EBITDA

6.2x

PEG

0.22

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 0.9% to 8.7% over 3 years.
Return on capital is rising
ROCE has improved from 2.4% to 6.6%.
Valuation below its historical average
At 14.0x the stock trades 54% below its own median of 30.4x.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 44% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 0.9% to 8.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 54% 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 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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

1Revenue growth stays above 10% a year✓ 12.9% CAGR
Latest reported year was -9.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.6%
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

5 good · 2 neutral · 4 weak

Market Cap

₹31 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

0.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.05

Profitable

Profitable on a per-share basis

ROE

3.6%

Weak

Weak capital efficiency

ROCE

6.6%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

-9.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

1500.0%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.7

Operating Margin

7.9%

Average

Average margins

Net Margin

3.3%

Average

Average bottom-line conversion

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.7 / 0.8

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	₹64 Cr	₹67 Cr	₹72 Cr	₹91 Cr	+12.9%
EBITDA	₹1 Cr	₹1 Cr	₹3 Cr	₹8 Cr	+139.4%
EBITDA Margin	0.9%	1.3%	4.1%	8.7%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+63.3%
EPS	₹0.02	₹0.06	₹0.05	—	—
ROE	1.7%	5.2%	4.0%	3.6%	—
ROCE	2.4%	6.7%	5.0%	6.6%	—
Total Debt	—	₹1 Cr	₹4 Cr	₹19 Cr	—
Free Cash Flow	-₹10 Cr	-₹3 Cr	-₹16 Cr	-₹5 Cr	—

🟢 Revenue has grown at 12.9% a year over 3 years.

🟢 EBITDA has grown at 139.4% a year over 3 years.

🟢 EBITDA Margin has risen from 0.9% to 8.7% over 3 years (+7.8 pts).

🟢 PAT (Net Profit) has grown at 63.3% a year over 3 years.

🟢 ROE has risen from 1.7% to 3.6% over 3 years (+1.9 pts).

🟢 ROCE has risen from 2.4% to 6.6% over 3 years (+4.2 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹110 Cr

Total Liabilities

₹46 Cr

Total Debt

₹19 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹30 Cr

Corporate Actions

Ex-Dividend Date

03 Dec 2018

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Mittal Life Style vs Nifty 50: Share Price Performance Compared

Univest, 07 Oct

Mittal Lifestyle approves 10:1 share consolidation to align price

scanx.trade, 25 Jun

Compare DEVIKA FINST with

Equitymaster, 14 Oct

Mittal Life Style Limited (NSE: MITTAL) Gains 13.75% as Stock Movement Draws Market Attention

Kalkine India, 07 Sept

Mittal Life Style (MITTAL.NS) Flat at ₹0.81: Consolidation Persists Between ₹0.77 Support and ₹0.85 Resistance - Rounding Top

https://www.siam.in/, 02 Sept

Mittal Life Style shareholders approve 10:1 equity consolidation

scanx.trade, 28 Jul

Watch Items

Revenue growth is negative (-9.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong13.3/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year12.9% CAGR
✓EBITDA margin holds above 7%8.7%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹5 Cr
✗ROCE stays above 8%6.6%