Mohit Industries Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹22.00+₹0.05 (+0.23%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, 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. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Mohit Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mohit Industries Limited engages in manufacturing texturized yarn from partially oriented yarn and weaving of yarn to grey cloth in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees293

Annual revenue₹139 Cr

How does it make money?

Turns over ₹139 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 293 employees supports ₹47.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin3.2%

Net margin-0.6%

Revenue / employee₹47.5 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.

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 2.8% 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.

ROCE2.8%

ROE-0.9%

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 -15% while net margin moved -36% 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-15%

Margin effect-36%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

30/ 100

Weak

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

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

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

P/E (Trailing)

Not meaningful

P/B

0.31x

EV/EBITDA

19.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 12.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1EBITDA margin holds above 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 12.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.7x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.8%
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 · 3 neutral · 5 weak

Market Cap

₹31 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

0.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.46

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.9%

Weak

Weak capital efficiency

ROCE

2.8%

Weak

Low return on total capital employed

Debt/Equity

0.60x

Moderate

Moderate leverage

Revenue Growth (YoY)

-23.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

67.5%

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 generative

Generates cash even after funding its capex

More Metrics

CMP

₹22

Operating Margin

-3.6%

Weak

Thin margins leave little room for error

Net Margin

-0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.86

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.7 / 23.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹164 Cr	₹129 Cr	₹110 Cr	₹139 Cr	-5.3%
EBITDA	₹4 Cr	₹3 Cr	₹1 Cr	₹4 Cr	+1.8%
EBITDA Margin	2.6%	2.0%	1.3%	3.2%	—
PAT (Net Profit)	-₹1 Cr	-₹2 Cr	-₹2 Cr	-₹1 Cr	—
EPS	₹-1.02	₹-1.35	₹-1.71	₹-0.56	—
ROE	-0.8%	-0.7%	-1.4%	-0.9%	—
ROCE	1.5%	0.4%	-0.1%	2.8%	—
Total Debt	₹56 Cr	₹52 Cr	₹62 Cr	₹56 Cr	-0.1%
Free Cash Flow	-₹1 Cr	₹9 Cr	-₹6 Cr	₹5 Cr	—

🔴 Revenue has shrunk at 5.3% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.8% a year).

🟡 EBITDA Margin has held roughly flat at 3.2% over 3 years.

🟡 ROE has held roughly flat at -0.9% over 3 years.

🟢 ROCE has risen from 1.5% to 2.8% over 3 years (+1.4 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.1% a year).

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹150 Cr

Total Liabilities

₹57 Cr

Total Debt

₹56 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.9%

Corporate Actions

Ex-Dividend Date

11 Aug 2016

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

Mohit Industries narrows FY26 net loss to ₹75.19 lakh

scanx.trade, 14 Oct

Mohit Industries vs Nifty 50: Share Price Performance Compared

Univest, 07 Oct

Momentum Stocks: Restaurant Brands, Mohit Industries, Steel City Securities rise up to 15% on sheer...

Moneycontrol.com, 04 Aug

Compare with MOHIT INDUSTRIES

Equitymaster, 27 Sept

Mohit Industries AGM 2026: 36th Meeting on 30 September

Kalkine India, 07 Sept

Mohit Industries shareholders approve all AGM resolutions with high majority

scanx.trade, 02 Oct

Watch Items

Revenue growth is negative (-23.0%) 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

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate9.8/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🟡RiskModerate5.2/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 1%3.2%
✗Debt / EBITDA falls below 3x12.4x
✗Interest cover stays above 3x0.7x
✓Free cash flow remains positive₹5 Cr
✗ROCE stays above 8%2.8%