MOPSHOP DISTRIBUTION LIMITED

Consumer Defensive — Household & Personal Products · BSE

₹33.00−₹0.70 (−2.08%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. 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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mopshop Distribution Limited provides Facility Management Supplies (FMS) in India.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees89

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 89 employees supports ₹47.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹47.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 78.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 51.6% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE27.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +40% while net margin moved +207% 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+40%

Margin effect+207%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

85/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.8x

Sector Median

38.6x

median of 4 sector peers

🟢Against its sector it trades 80% below the peer median of 38.6x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

38.6x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.9x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.4% to 13.8% over 2 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 2 years.
High return on capital employed
ROCE of 78.0% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 64.8% to 51.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 94.2% to 78.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 650% against revenue up 40% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 31% over 2 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 78.0% 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 4.4% to 13.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 80% 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 64.8% to 51.6%. 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
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 14% a year✓ 18.3% CAGR
Latest reported year was 10.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 75%✓ 78.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹24 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.8x

Cheap

Cheap against the generic band

P/B Ratio

1.55x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.25

Profitable

Profitable on a per-share basis

ROE

51.6%

Strong

Strong capital efficiency

ROCE

78.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

10.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

145.6%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

17.4%

Good

Healthy core-business profitability

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

17.2

Oversold zone

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹30 Cr	₹38 Cr	₹42 Cr	+18.3%
EBITDA	₹1 Cr	₹3 Cr	₹6 Cr	+109.5%
EBITDA Margin	4.4%	7.3%	13.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	+107.1%
ROE	64.8%	48.5%	51.6%	—
ROCE	94.2%	81.0%	78.0%	—
Total Debt	₹4 Cr	₹7 Cr	₹5 Cr	+14.4%
Free Cash Flow	-₹3 Cr	-₹1 Cr	₹3 Cr	—

🟢 Revenue has grown at 18.3% a year over 2 years.

🟢 EBITDA has grown at 109.5% a year over 2 years.

🟢 EBITDA Margin has risen from 4.4% to 13.8% over 2 years (+9.4 pts).

🟢 PAT (Net Profit) has grown at 107.1% a year over 2 years.

🔴 ROE has fallen from 64.8% to 51.6% over 2 years (-13.2 pts).

🔴 ROCE has fallen from 94.2% to 78.0% over 2 years (-16.2 pts).

🔴 Total Debt has grown at 14.4% a year over 2 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹24 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

MOPSHOP DISTRIBUTION LIMITED Share Price

Upstox, 16 Oct

Compare VALLEY INDIANA with

Equitymaster, 18 Oct

Mopshop Distribution Lists at ₹137, Trades 0.72% Lower

HDFC Sky, 26 Aug

BSE SME Mopshop Distribution struggles to make a clean start

Business Standard, 26 Aug

Mopshop Distribution, Dhanwel Hybrid Seeds shares set to list today: Here’s what GMP suggests

The Economic Times, 26 Aug

Mopshop Distribution IPO Day 1: Issue booked 29% so far. Check GMP, issue details

Livemint, 19 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑