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Check Before You Invest : Mallcom (India) Ltd

BSE: 539400 NSE: MALLCOM ISIN: INE389C01015
  |   Sector:  Miscellaneous   |   Industry:  Miscellaneous

Snapshot

Q.1 Which industry/sub-sector does Mallcom (India) Ltd belong to?
Mallcom (India) Ltd belongs to the Miscellaneous sector, operating specifically within the Miscellaneous segment.
Q.2 Is Mallcom (India) Ltd a good quality company?
Mallcom (India) Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Mallcom (India) Ltd undervalued or overvalued?
Mallcom (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 12.05 15.25
Price to Book 2.16 2.95
Price to Sales 1.32 1.46
EV to EBITDA 8.82 10.36
Q.4 Is Mallcom (India) Ltd a good buy now?
Mallcom (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Mallcom (India) Ltd?
Mallcom (India) Ltd revenue growth is 16.1% for FY-2025, which is above its 5-year CAGR of 10.36%, indicating faster growth.

Q.2 Gross Profit margin of Mallcom (India) Ltd?
Mallcom (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.6% for FY-2025, which is above its 5-year median of 13.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Mallcom (India) Ltd?
Mallcom (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.71% for FY-2025, which is in line with its 5-year median of 12.71% indicating stable margins.

Q.4 Net Profit Margin of Mallcom (India) Ltd?
Mallcom (India) Ltd Net Profit Margin is 12.45% for FY-2025, is above its 5-year median of 8.73%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.6 13.5
Operating Profit Margin (%) 12.71 12.71
Net Profit Margin (%) 12.45 8.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mallcom (India) Ltd?
Mallcom (India) Ltd Return on Asset is 14.18%, which is above its 5-year historical median of 12.86%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mallcom (India) Ltd?
Mallcom (India) Ltd Return on capital employed is 22.84% for FY-2025, which is in line with its 5-year historical median of 22.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Mallcom (India) Ltd?
Mallcom (India) Ltd Return on equity is 22.79% for FY-2025, which is above its 5-year historical median of 21.57%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Mallcom (India) Ltd?
Mallcom (India) Ltd Cash conversion cycle is 95 days, above its 5-year historical median of 78 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.14 1.42
ROE (%) 22.79 21.57
ROCE (%) 22.84 22.35
Cash Conversion Cycle 95 days 78 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Mallcom (India) Ltd?
Mallcom (India) Ltd Debt-to-Equity ratio is 0.38, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Mallcom (India) Ltd?
Mallcom (India) Ltd Debt to cash flow from operations is 102.46, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mallcom (India) Ltd?

Q.1 Promoter shareholding and pledge status of Mallcom (India) Ltd?
Promoters hold 73.68% of the Mallcom (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mallcom (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mallcom (India) Ltd vs industry peers?
Mallcom (India) Ltd revenue CAGR is 10.36%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 16.1 -
Gross Profit Growth (%) 50.9 12.3
Operating Profit Growth (%) 11.1 13.4
Net Profit Growth (%) 68.6 15.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.14 0.27
ROE (%) 22.79 2.93
ROCE (%) 22.84 8.78
Cash Conversion Cycle (days) 95.18 -

Valuation & price assessment

Q.1 Stock return of Mallcom (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19.8% 9.5% 6.3% -4%
Q.2 Valuation ratios of Mallcom (India) Ltd vs historical?
The current P/E ratio of 12.05 is lower than its historical median of 15.25, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 12.05 15.25 27.68
Price to Book 2.16 2.95 2.36
Price to Sales 1.32 1.46 4.98
EV to EBITDA 8.82 10.36 10.84

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