Monte Carlo Fashions Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹527.20+₹4.70 (+0.90%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Monte Carlo Fashions Limited manufactures and trades in woolen, cotton, cotton-blended, knitted, and woven garments for men, women, and kids in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees2,360

Annual revenue₹1,275 Cr

How does it make money?

Turns over ₹1,275 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 2,360 employees supports ₹54.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.0 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?Some evidence

ROCE of 16.9% 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 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 +14% while net margin moved -26% 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+14%

Margin effect-26%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.5% — barely ahead of inflation
✗ Profit has declined at 5.4% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

87/ 100

Cheap

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

10.4x

3Y Median

14.2x

40 monthly readings · mean 15.8x · range 9.5x–29.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 14.2x. 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 85% below the peer median of 69.2x.

vs. its own history

Cheap

14.2x median over 40 months · -26%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

0.27

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.1% to 12.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.6% to 16.9% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 75% over 3 years, from ₹331 Cr to ₹580 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 26% 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 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 4.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 17.1% to 12.4%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 18%✓ 20.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.5% CAGR
Latest reported year was 7.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹62 Cr
Profit that never becomes cash eventually stops being profit.

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

7 good · 4 neutral · 0 weak

Market Cap

₹1,093 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.4x

Cheap

Cheap against the generic band

P/B Ratio

1.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹50.57

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

16.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.6%

Modest

Modest growth

Profit Growth (YoY)

38.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.79%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹62 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

10.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-20.0%

Weak

Thin margins leave little room for error

Net Margin

8.2%

Average

Average bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

524.1 / 532.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,116 Cr	₹1,061 Cr	₹1,099 Cr	₹1,275 Cr	+4.5%
EBITDA	₹230 Cr	₹159 Cr	₹210 Cr	₹257 Cr	+3.8%
EBITDA Margin	20.6%	15.0%	19.1%	20.2%	—
PAT (Net Profit)	₹133 Cr	₹60 Cr	₹81 Cr	₹112 Cr	-5.4%
EPS	₹63.92	₹28.91	₹39.15	₹54.05	-5.4%
ROE	17.1%	7.5%	9.7%	12.4%	—
ROCE	20.6%	12.0%	14.9%	16.9%	—
Total Debt	₹331 Cr	₹382 Cr	₹514 Cr	₹580 Cr	+20.5%
Free Cash Flow	-₹59 Cr	₹47 Cr	₹35 Cr	₹62 Cr	—

🟢 Revenue has grown at 4.5% a year over 3 years.

🟢 EBITDA has grown at 3.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 20.2% over 3 years.

🔴 PAT (Net Profit) has shrunk at 5.4% a year over 3 years.

🔴 EPS has shrunk at 5.4% a year over 3 years.

🔴 ROE has fallen from 17.1% to 12.4% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 20.6% to 16.9% over 3 years (-3.8 pts).

🔴 Total Debt has grown at 20.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹59 Cr to ₹62 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,920 Cr

Total Liabilities

₹1,015 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹100 Cr

Capex

-₹38 Cr

Shareholding (proxy)

Institutional Holding

2.3%

Insider Holding

74.5%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

21 Sept 2026

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

3 positive1 mixed2 general

Monte Carlo Fashions Share Price

Upstox, 16 Oct

Textile stocks’ dividend race: Premco Global, Monte Carlo, Siyaram, Ambika Cotton - Which stock spins highest yield?

Livemint, 15 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Textile Stocks Dividend Yield: Premco, Ambika, Monte Carlo

Univest, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Monte Carlo Fashions closes trading window from October 1 ahead of Q2FY27 results

scanx.trade, 24 SeptResults

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

Monte Carlo Fashions Limited (NSE:MONTECARLO) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 17 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Monte Carlo Consolidated June 2026 Net Sales at Rs 149.04 crore, up 7.59% Y-o-Y

Moneycontrol.com, 18 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑