MMP Industries Limited

Basic Materials — Aluminum · NSE

₹491.50−₹3.30 (−0.67%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

MMP Industries Limited engages in the manufacture, sale, distribution, and trade of aluminium products in India. It operates in four segments: Aluminium Powders and Pastes, Aluminium Conductors, Aluminium Foils, Insulators, and Others.

IndustryAluminum

SectorBasic Materials

Employees565

Annual revenue₹823 Cr

How does it make money?

Turns over ₹823 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 565 employees supports ₹1.46 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.46 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. 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 12.9% 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 ROE18.7%

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 +53% while net margin moved -5% 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+53%

Margin effect-5%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.9% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

45/ 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

24.9x

3Y Median

24.5x

40 monthly readings · mean 25.1x · range 12.3x–40.6x

Sector Median

12.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 24.5x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 105% above the peer median of 12.2x.

vs. its own history

Fair

24.5x median over 40 months · +2%

vs. sector peers

Expensive

12.2x median of 4 peers · +105%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.1x

PEG

1.87

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 7.1% to 9.1% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 1 high · 5 watch

🔴Debt has risen sharplyFinancial
Total debt is up 221% over 3 years, from ₹58 Cr to ₹185 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.0x to 4.0x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 99% against revenue up 53% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 84% against revenue up 53% — stock may not be moving.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. 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?

Margin expansion has further to run
EBITDA margin has risen from 7.1% to 9.1%. 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 99% against revenue up 53%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 105% above the peer median. That premium needs a reason that persists, or it closes.
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 11% a year✓ 15.2% CAGR
Latest reported year was 26.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 12.9%
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

3 good · 6 neutral · 2 weak

Market Cap

₹1,249 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.73

Profitable

Profitable on a per-share basis

ROE

8.9%

Moderate

Moderate capital efficiency

ROCE

12.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

26.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-20.2%

Falling

Profits are shrinking

Dividend Yield

0.41%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.6%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

91%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

475.9 / 428.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹538 Cr	₹578 Cr	₹691 Cr	₹823 Cr	+15.2%
EBITDA	₹38 Cr	₹54 Cr	₹72 Cr	₹75 Cr	+24.8%
EBITDA Margin	7.1%	9.4%	10.3%	9.1%	—
PAT (Net Profit)	₹21 Cr	₹32 Cr	₹39 Cr	₹31 Cr	+13.3%
EPS	₹8.39	₹12.46	₹15.31	₹12.21	+13.3%
ROE	8.3%	10.9%	12.0%	8.9%	—
ROCE	11.5%	14.7%	16.3%	12.9%	—
Total Debt	₹58 Cr	₹93 Cr	₹156 Cr	₹185 Cr	+47.4%
Free Cash Flow	₹2 Cr	-₹1 Cr	₹5 Cr	-₹2 Cr	—

🟢 Revenue has grown at 15.2% a year over 3 years.

🟢 EBITDA has grown at 24.8% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 9.1% over 3 years (+1.9 pts).

🟢 PAT (Net Profit) has grown at 13.3% a year over 3 years.

🟢 EPS has grown at 13.3% a year over 3 years.

🟡 ROE has held roughly flat at 8.9% over 3 years.

🟢 ROCE has risen from 11.5% to 12.9% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 47.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹625 Cr

Total Liabilities

₹278 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹53 Cr

Capex

-₹56 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

3 mixed3 general

MMP Industries (NSEI:MMP) - Stock Analysis

Simply Wall Street, 14 Oct

MMP Industries vs Nifty 50: Share Price Performance Compared

Univest, 07 Oct

MMP Industries reports consolidated net profit of Rs 13.70 crore in the June 2026 quarter

Business Standard, 10 AugResults

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

MMP Industries (MMP.NS) Slips 2.71% to ₹447.80 as Stock Tests Mid-Range Levels - Beta Neutral Pair

siam.in, 10 Sept

MMP Industries Share Price Rises 8.51%: Price, Valuation

Univest, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

MMP Industries' (NSE:MMP) Conservative Accounting Might Explain Soft Earnings

Simply Wall Street, 01 JunResults

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Valuation · Risk

WeakProfitability

Points for each in the Score ↑

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.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑