MMTC Limited

Industrials — Conglomerates · NSE

₹56.55−₹0.31 (−0.55%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, 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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

MMTC Limited operates as a trading company in Asia, Europe, Africa, the Middle East, Latin America, and North America. It operates through Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer, and General Trade/others segments.

IndustryConglomerates

SectorIndustrials

Employees245

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹11360 reaches shareholders as profit, with ₹7223 left at the operating level before interest, tax and depreciation. Each of its 245 employees supports ₹1.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹1.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Some evidence

ROCE of 29.7% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -100% while net margin moved +25550% 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-100%

Margin effect+25550%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 90.1% a year
✗ Profit has declined at 37.2% a year

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

67/ 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

19.0x

3Y Median

54.2x

40 monthly readings · mean 54.1x · range 4.0x–118.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 65% below its 3y median of 54.2x. 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 79% below the peer median of 88.8x.

vs. its own history

Cheap

54.2x median over 40 months · -65%

vs. sector peers

Cheap

88.8x median of 3 peers · -79%

vs. generic bands

Fair

15x–35x

EV/EBITDA

34.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 13.5% to 7223.5% over 3 years.
Debt is being paid down
Total debt is down 99% over 3 years.
High return on capital employed
ROCE of 29.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 110.7% to 18.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 129.2% to 29.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🟡Profit is decliningFinancial
Net profit is down 75% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.7% 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 13.5% to 7223.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 99% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 65% 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 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 110.7% to 18.3%. 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
Small 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

1EBITDA margin holds above 7221%✓ 7223.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹605 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 27%✓ 29.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 54.2x✓ 19.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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 · 4 neutral · 2 weak

Market Cap

₹8,482 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.0x

Fair

Fairly valued against the generic band

P/B Ratio

4.00x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.98

Profitable

Profitable on a per-share basis

ROE

18.3%

Strong

Strong capital efficiency

ROCE

29.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

-50.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

130.0%

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

-₹605 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-3072.1%

Weak

Thin margins leave little room for error

Net Margin

16386.8%

Good

Strong bottom-line conversion

Current Ratio

3.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

57.2 / 60.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,527 Cr	₹5 Cr	₹3 Cr	₹3 Cr	-90.1%
EBITDA	₹475 Cr	₹162 Cr	₹139 Cr	₹246 Cr	-19.7%
EBITDA Margin	13.5%	3157.5%	5150.2%	7223.5%	—
PAT (Net Profit)	₹1,562 Cr	₹192 Cr	₹87 Cr	₹387 Cr	-37.2%
EPS	₹10.42	₹1.28	₹0.58	₹2.58	-37.2%
ROE	110.7%	12.1%	5.1%	18.3%	—
ROCE	129.2%	12.4%	6.7%	29.7%	—
Total Debt	₹203 Cr	₹5 Cr	₹2 Cr	₹2 Cr	-77.1%
Free Cash Flow	₹754 Cr	-₹353 Cr	-₹367 Cr	-₹605 Cr	—

🔴 Revenue has shrunk at 90.1% a year over 3 years.

🔴 EBITDA has shrunk at 19.7% a year over 3 years.

🟢 EBITDA Margin has risen from 13.5% to 7223.5% over 3 years (+7210.0 pts).

🔴 PAT (Net Profit) has shrunk at 37.2% a year over 3 years.

🔴 EPS has shrunk at 37.2% a year over 3 years.

🔴 ROE has fallen from 110.7% to 18.3% over 3 years (-92.4 pts).

🔴 ROCE has fallen from 129.2% to 29.7% over 3 years (-99.4 pts).

🟢 Total Debt has shrunk at 77.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹754 Cr to -₹605 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,796 Cr

Total Liabilities

₹675 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹605 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.7%

Insider Holding

89.9%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

This PSU Stock Jumps 8% in Trade Amid Rising Gold, Silver Prices

NDTV Profit, 20 Aug

Why MMTC stock jumped 13%; Here are the key reasons

Dalal Street Investment Journal, 18 Mar

Volumes spurt at MMTC Ltd counter

Business Standard, 20 Aug

Why MMTC Ltd Share Price is Rising

Equitymaster, 14 Jan

MMTC shares decline 5% as gold, silver prices cool off from record levels

The Economic Times, 30 DecPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

MMTC PAMP Calls For Better Gold Recycling Schemes To Unlock Household Stock

Sahi, 20 Aug

Watch Items

Revenue growth is negative (-50.0%) 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

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingRisk

WeakGrowth

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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑