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Check Before You Invest : MFL India Ltd

BSE: 526622 NSE: ISIN: INE244C01020
  |   Sector:  Transportation & Logistics   |   Industry:  Logistics

Snapshot

Q.1 Which industry/sub-sector does MFL India Ltd belong to?
MFL India Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.
Q.2 Is MFL India Ltd a good quality company?
MFL India Ltd is a quality company, based on a 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 MFL India Ltd undervalued or overvalued?
MFL 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 10.25 2.32
Price to Book -19.28 -9.49
Price to Sales 0.25 0.66
EV to EBITDA 56.74 13.93
Q.4 Is MFL India Ltd a good buy now?
MFL India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 MFL India Ltd?
MFL India Ltd revenue growth is -2.5% for FY-2025, which is below its 5-year CAGR of 113.07%, indicating slower growth.

Q.2 Gross Profit margin of MFL India Ltd?
MFL India Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025, which is in line with its 5-year median of 3.5%, indicating stable margins.

Q.3 Operating Profit Margin of MFL India Ltd?
MFL India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.92% for FY-2025, which is above its 5-year median of 0.57% indicating increasing margins.

Q.4 Net Profit Margin of MFL India Ltd?
MFL India Ltd Net Profit Margin is -1.58% for FY-2025, is below its 5-year median of 0.03%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.5 3.5
Operating Profit Margin (%) 2.92 0.57
Net Profit Margin (%) -1.58 0.03

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of MFL India Ltd?
MFL India Ltd Return on Asset is -4.31%, which is below its 5-year historical median of 0.04%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of MFL India Ltd?
MFL India Ltd Return on capital employed is 1.28% for FY-2025, which is in line with its 5-year historical median of 1.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Cash conversion cycle of MFL India Ltd?
MFL India Ltd Cash conversion cycle is -17 days, below its 5-year historical median of 12 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of MFL India Ltd?
MFL India Ltd Debt-to-Equity ratio is -6.33, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of MFL India Ltd?
MFL India Ltd Debt to cash flow from operations is 14.44, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of MFL India Ltd?

Q.1 Promoter shareholding and pledge status of MFL India Ltd?
Promoters hold 0.42% of the MFL India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does MFL India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of MFL India Ltd vs industry peers?
MFL India Ltd revenue CAGR is 113.07%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -2.5 0
Gross Profit Growth (%) 0 14.2
Operating Profit Growth (%) 0 11.5
Net Profit Growth (%) 0 12.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.72 1.75
ROE (%) - 9.41
ROCE (%) 1.28 12.69
Cash Conversion Cycle (days) -16.75 43

Valuation & price assessment

Q.1 Stock return of MFL India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
1.8% 19% -14.2% -24.6%
Q.2 Valuation ratios of MFL India Ltd vs historical?
The current P/E ratio of 10.25 is higher than its historical median of 2.32, indicating that the stock is trading above 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 10.25 2.32 19.94
Price to Book -19.28 -9.49 2.00
Price to Sales 0.25 0.66 0.89
EV to EBITDA 56.74 13.93 10.78

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