MKP Mobility Limited

Consumer Cyclical — Auto Parts · BSE

₹213.00+₹0.45 (+0.21%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

MKP Mobility Limited distributes and exports automobile spare parts and lubricants in India and internationally. It distributes industrial products, mechanical and electronic components, auto care products, tyres, batteries, and refurbished parts.

IndustryAuto Parts

SectorConsumer Cyclical

Employees34

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹1.07 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.07 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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?Some evidence

ROCE of 28.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

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 +29598% while net margin moved -102% 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+29598%

Margin effect-102%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.28 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

65/ 100

Fair

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

30.7x

2Y Median

75.6x

28 monthly readings · mean 90.3x · range 28.8x–169.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 59% below its 2y median of 75.6x. 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 33% below the peer median of 45.7x.

vs. its own history

Cheap

75.6x median over 28 months · -59%

vs. sector peers

Cheap

45.7x median of 4 peers · -33%

vs. generic bands

Fair

15x–35x

EV/EBITDA

28.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -212.1% to 7.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -5.0% to 21.0%.
Return on capital is rising
ROCE has improved from -5.0% to 28.5%.
High return on capital employed
ROCE of 28.5% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 9.56x — earnings must service borrowings before shareholders see anything.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from -212.1% to 7.0%. 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 59% 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 33% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 9.56x. Interest is payable whether or not the business has a good year.
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
2 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 425% a year✓ 567.2% CAGR
Latest reported year was 29.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹73 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.7x

Fair

Fairly valued against the generic band

P/B Ratio

8.75x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹6.93

Profitable

Profitable on a per-share basis

ROE

21.0%

Strong

Strong capital efficiency

ROCE

28.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.56x

High

High leverage

Revenue Growth (YoY)

29.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

128.3%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.6%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

3.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.28

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

205.5 / 170.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹23 Cr	₹32 Cr	₹36 Cr	+567.2%
EBITDA	-₹0 Cr	₹1 Cr	₹2 Cr	₹3 Cr	—
EBITDA Margin	-212.1%	3.8%	5.0%	7.0%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹0 Cr	₹2 Cr	—
EPS	₹-0.82	₹3.33	₹0.83	₹5.13	—
ROE	-5.0%	18.0%	4.3%	21.0%	—
ROCE	-5.0%	12.3%	23.3%	28.5%	—
Total Debt	—	₹0 Cr	₹3 Cr	₹1 Cr	—
Free Cash Flow	-₹0 Cr	-₹4 Cr	₹3 Cr	₹0 Cr	—

🟢 Revenue has grown at 567.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹3 Cr.

🟢 EBITDA Margin has risen from -212.1% to 7.0% over 3 years (+219.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-0.82 to ₹5.13.

🟢 ROE has risen from -5.0% to 21.0% over 3 years (+26.0 pts).

🟢 ROCE has risen from -5.0% to 28.5% over 3 years (+33.5 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.4%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed4 general

MKP Mobility to transfer 16.50% shares between promoters

scanx.trade, 09 Jul

MKP Mobility consolidated net profit rises 129.79% in the June 2026 quarter

Business Standard, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

MKP Mobility Limited Reports Strong Q3FY26 Results with 485% YoY Profit Growth

scanx.trade, 12 FebResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

MKP Mobility (BSE:521244) - Stock Analysis

Simply Wall Street, 21 Sept

MKP Mobility Ltd Share Price

Business Today, 31 Jan

CUPIDALBV Stock Price and Chart — BSE:CUPIDALBV

TradingView, 29 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑