Mysore Petro Chemicals Limited

Basic Materials — Chemicals · NSE

₹121.00+₹1.00 (+0.83%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Mysore Petro Chemicals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mysore Petro Chemicals Limited engages in the manufacturing and trading of petrochemical products in India. The company offers ortho xylene, phthalic anhydride, maleic anhydride, benzoic acid, and other petrochemical products.

IndustryChemicals

SectorBasic Materials

Employees6

Annual revenue₹52 Cr

How does it make money?

Turns over ₹52 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹8.70 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.8%

Net margin1.6%

Revenue / employee₹8.70 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 0.3% 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.

ROCE0.3%

ROE0.4%

Peer median ROE15.4%

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 +184% while net margin moved -99% 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+184%

Margin effect-99%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.18 — historically steadier than the index
✗ 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

60/ 100

Average

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

Valuation

80/ 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

7.4x

Sector Median

33.8x

median of 3 sector peers

🟢Against its sector it trades 78% below the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.8x median of 3 peers · -78%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.4x

P/B

0.35x

EV/EBITDA

11.6x

PEG

—

Dividend Yield

1.65%

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.08x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 156.5% to 12.8% over 3 years.
Return on equity is falling
ROE has dropped from 9.7% to 0.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.7% to 0.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 353% against revenue growth of 184% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 143.7 points, from 156.5% to 12.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 353% against revenue up 184% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 96% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 78% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹8 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 156.5% to 12.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 353% against revenue up 184%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 9.7% to 0.4%. 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.
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 31% a year✓ 41.5% CAGR
Latest reported year was 57.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹80 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.4x

Cheap

Cheap against the generic band

P/B Ratio

0.35x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹16.35

Profitable

Profitable on a per-share basis

ROE

0.4%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

0.08x

Low

Conservative leverage

Revenue Growth (YoY)

57.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-73.3%

Falling

Profits are shrinking

Dividend Yield

1.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹121

Operating Margin

-3.7%

Weak

Thin margins leave little room for error

Net Margin

19.1%

Good

Strong bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹18 Cr	₹26 Cr	₹33 Cr	₹52 Cr	+41.5%
EBITDA	₹29 Cr	₹7 Cr	₹17 Cr	₹7 Cr	-38.6%
EBITDA Margin	156.5%	27.4%	50.2%	12.8%	—
PAT (Net Profit)	₹21 Cr	₹7 Cr	₹3 Cr	₹1 Cr	-66.0%
EPS	₹31.48	₹11.35	₹4.62	₹1.23	-66.1%
ROE	9.7%	3.4%	1.4%	0.4%	—
ROCE	10.7%	4.4%	6.9%	0.3%	—
Total Debt	—	₹20 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	-₹3 Cr	-₹18 Cr	-₹4 Cr	₹8 Cr	—

🟢 Revenue has grown at 41.5% a year over 3 years.

🔴 EBITDA has shrunk at 38.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 156.5% to 12.8% over 3 years (-143.7 pts).

🔴 PAT (Net Profit) has shrunk at 66.0% a year over 3 years.

🔴 EPS has shrunk at 66.1% a year over 3 years.

🔴 ROE has fallen from 9.7% to 0.4% over 3 years (-9.3 pts).

🔴 ROCE has fallen from 10.7% to 0.3% over 3 years (-10.4 pts).

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹296 Cr

Total Liabilities

₹71 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.5%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

04 Aug 2026

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Mysore Petro Standalone June 2026 Net Sales at Rs 11.44 crore, up 57.63% Y-o-Y

Moneycontrol.com, 15 Oct

MYSORPETRO Stock Price and Chart — NSE:MYSORPETRO

TradingView, 17 Aug

Mysore Petro Chemicals Q1 Results: Consolidated net profit surges 2,513% YoY

scanx.trade, 10 AugResults

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

Mysore Petro Consolidated June 2026 Net Sales at Rs 11.44 crore, up 57.63% Y-o-Y

Moneycontrol.com, 15 Oct

Mysore Petro Chemicals Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Mysore Petro Chemicals Q1 FY27 Results: Revenue Rs 11 Cr, PAT Rs 0.77 Cr and Key Highlights

Univest, 11 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

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong17.8/20

🟡GrowthModest9.3/20

🟡ProfitabilityModerate7.5/15

🟢ValuationAttractive13/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓Revenue growth stays above 31% a year41.5% CAGR
✓EBITDA margin holds above 11%12.8%
✓Free cash flow remains positive₹8 Cr
✓Debt / EBITDA stays below 2x0.0x
✗ROCE stays above 8%0.3%