MOS Utility Limited

Sector n/a · NSE

₹187.95+₹0.25 (+0.13%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:05 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

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

How does it make money?

Turns over ₹635 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

EBITDA margin5.4%

Net margin2.8%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.6%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE24.6%

ROE16.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +498% while net margin moved -47% 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+498%

Margin effect-47%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

18/ 100

Expensive

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

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

143.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 20.6% to 24.6%.
High return on capital employed
ROCE of 24.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 6.9% to 5.4% over 3 years.
Debt is rising
Total debt is up 817% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 21.5% to 16.9% — each rupee of shareholder capital earns less than it did.
Inventory building faster than sales
Inventory is up 3701% against revenue growth of 498% — stock may not be moving.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 817% over 3 years, from ₹8 Cr to ₹71 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 3701% against revenue up 498% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 106% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.6% 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.
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 6.9% to 5.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 21.5% to 16.9%. 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
3 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 61% a year✓ 81.5% CAGR
Latest reported year was 3.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 22%✓ 24.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹4,839 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

16.9%

Strong

Strong capital efficiency

ROCE

24.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.67x

Moderate

Moderate leverage

Revenue Growth (YoY)

3.2%

Modest

Modest growth

Profit Growth (YoY)

44.3%

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

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹187.95

Gross Margin

6.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

6.4 / 8.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹106 Cr	₹187 Cr	₹616 Cr	₹635 Cr	+81.5%
EBITDA	₹7 Cr	₹13 Cr	₹26 Cr	₹34 Cr	+66.6%
EBITDA Margin	6.9%	6.9%	4.1%	5.4%	—
PAT (Net Profit)	₹6 Cr	₹11 Cr	₹12 Cr	₹18 Cr	+46.9%
EPS	₹0.46	₹0.97	₹0.55	—	—
ROE	21.5%	15.2%	14.6%	16.9%	—
ROCE	20.6%	18.3%	20.9%	24.6%	—
Total Debt	₹8 Cr	₹11 Cr	₹21 Cr	₹71 Cr	+109.3%
Free Cash Flow	₹4 Cr	-₹26 Cr	₹24 Cr	-₹13 Cr	—

🟢 Revenue has grown at 81.5% a year over 3 years.

🟢 EBITDA has grown at 66.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.9% to 5.4% over 3 years (-1.6 pts).

🟢 PAT (Net Profit) has grown at 46.9% a year over 3 years.

🔴 ROE has fallen from 21.5% to 16.9% over 3 years (-4.6 pts).

🟢 ROCE has risen from 20.6% to 24.6% over 3 years (+4.0 pts).

🔴 Total Debt has grown at 109.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹219 Cr

Total Liabilities

₹110 Cr

Total Debt

₹71 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹9 Cr

Recent News

1 positive5 general

MOS Utility Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

MOS Utility Limited Announces Postal Ballot for Migration to Main Board of NSE and BSE

scanx.trade, 24 Apr

MOS Utility consolidated net profit rises 11.50% in the March 2026 quarter

Business Standard, 26 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

MOS Utility Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Price Band Hitters on September 7, 2026 at 4:00 PM

HDFC Sky, 07 Sept

MONEYVIEW LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 01 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate11/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate7.3/15

🟡ValuationFair7.5/15

🔴RiskHigh2.4/10

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

This thesis breaks if

✓Revenue growth stays above 61% a year81.5% CAGR
✓EBITDA margin holds above 3%5.4%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹13 Cr
✓ROCE stays above 22%24.6%