Mohite Industries Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹2.53+₹0.06 (+2.43%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, 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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mohite Industries Limited engages in the textile and power generation businesses in India. The company operates through Textiles and Hydro Power segments. It offers compact cotton and slub yarns, as well as gray knitted fabrics.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees241

Annual revenue₹153 Cr

How does it make money?

Turns over ₹153 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 241 employees supports ₹63.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹63.6 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.9% 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 ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +82% while net margin moved -70% 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+82%

Margin effect-70%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.1% is weak
✗ ROE has fallen by 3.0 points over the period

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

54/ 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.

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

7.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 151% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 6.1% to 3.1% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 15.1 points, from 29.1% to 14.0%.
🟡Profit is decliningFinancial
Net profit is down 46% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 29.1% to 14.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 6.1% to 3.1%. 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.
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 17% a year✓ 22.0% 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 12%✓ 14.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹22 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹51 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

0.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.04

Loss-making

Negative earnings per share — the business is losing money

ROE

3.1%

Weak

Weak capital efficiency

ROCE

7.9%

Weak

Low return on total capital employed

Debt/Equity

0.84x

Moderate

Moderate leverage

Revenue Growth (YoY)

-29.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-32.1%

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

₹22 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-12.3%

Weak

Thin margins leave little room for error

Net Margin

1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

RSI (14)

61.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹84 Cr	₹125 Cr	₹167 Cr	₹153 Cr	+22.0%
EBITDA	₹25 Cr	₹23 Cr	₹25 Cr	₹21 Cr	-4.4%
EBITDA Margin	29.1%	18.7%	15.2%	14.0%	—
PAT (Net Profit)	₹7 Cr	₹4 Cr	₹5 Cr	₹4 Cr	-18.5%
EPS	₹0.33	₹0.18	₹0.27	₹0.18	-18.5%
ROE	6.1%	3.2%	4.7%	3.1%	—
ROCE	9.2%	7.3%	9.3%	7.9%	—
Total Debt	₹105 Cr	₹135 Cr	₹115 Cr	₹103 Cr	-0.5%
Free Cash Flow	₹9 Cr	-₹20 Cr	₹31 Cr	₹22 Cr	+36.0%

🟢 Revenue has grown at 22.0% a year over 3 years.

🔴 EBITDA has shrunk at 4.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 29.1% to 14.0% over 3 years (-15.1 pts).

🔴 PAT (Net Profit) has shrunk at 18.5% a year over 3 years.

🔴 EPS has shrunk at 18.5% a year over 3 years.

🔴 ROE has fallen from 6.1% to 3.1% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 9.2% to 7.9% over 3 years (-1.3 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.5% a year).

🟢 Free Cash Flow has grown at 36.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹250 Cr

Total Liabilities

₹121 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.8%

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

1 mixed5 general

Top 65 Stocks Under 10 Rupees To Buy In October 2026 | High Potential Picks

Samco, 17 Oct

Mohite Industries Consolidated March 2024 Net Sales at Rs 61.89 crore

Motilal Oswal, 12 Oct

Mohite Industries shareholders approve FY26 financials, director reappointment

scanx.trade, 01 Oct

Top 15 Low-Price Stocks In India To Buy In October 2026

Samco, 17 Oct

Mohite Industries FY26 PAT rises to ₹362.22 lakh

scanx.trade, 02 Jun

Mcleod Russel India reports consolidated net loss of Rs 13.38 crore in the June 2026 quarter

Business Standard, 15 AugResults

🟡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

Revenue growth is negative (-29.8%) 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

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑