20 Microns Limited (20MICRONS) AI Stock Analysis

• Market Cap: ₹5.42B
• Dividend Yield: 0.63%
• Average Volume (3M): 9.40K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.12
• Revenue Growth: 7.23%
• EPS Growth: 5.00%
• Country: IN
• Employees: 384
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 4.24
• Shares Outstanding: 35,286,503
• 10 Day Avg. Volume: 7,176
• 30 Day Avg. Volume: 9,400
• PEG Ratio: 1.04
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -16.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹161.00 ▼(-18.87% Downside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 03/17/26

The score is supported primarily by strong profitability metrics and a stable balance sheet, plus a reasonable P/E valuation. It is held back by weak cash flow (negative free cash flow growth and weaker cash conversion) and bearish technicals with the price below key moving averages and negative MACD.

Positive Factors

High profitability margins

Sustained high gross and EBIT margins indicate structural pricing power from product mix and cost control. Over 2–6 months this supports reinvestment capacity and resilience to input swings, enabling funding for R&D, quality control and margin-preserving commercialization of value-added grades.

Conservative balance sheet and strong ROE

Prudent leverage and a strong equity base provide financial flexibility and lower solvency risk. A 14.5% ROE signals effective capital deployment, allowing the company to fund organic growth or absorb shocks without excessive refinancing, supporting durable operations and strategic optionality.

Specialized, value-added product portfolio and diversified end-markets

Engineering and surface-treatment capabilities create specification-driven products that command better realizations and foster repeat, stickier customer relationships. Broad end-market exposure reduces single-sector dependency and supports steady demand over multi-month horizons.

Negative Factors

Weak free cash flow and cash conversion

Material deterioration in free cash flow and modest cash conversion imply earnings do not fully translate into spendable cash. Persisting over months, this constrains dividend capacity, debt reduction and discretionary investment, increasing reliance on external financing or trimming growth projects.

Substantial capital expenditures pressure cash flows

Ongoing high capex to support capacity or quality improvements can be strategic, but sustained elevated investment that outpaces operating cash generation risks eroding liquidity and return on invested capital unless new capacity yields commensurate margin or volume gains.

Exposure to cyclical downstream demand

Revenue and pricing sensitivity to industrial and construction cycles creates structural earnings volatility. Over a 2–6 month horizon, downturns in key end-markets can depress volumes and realizations, testing margin sustainability and working capital management.

20 Microns Limited Business Overview & Revenue Model

Company Description

20 Microns Limited engages in the industrial micronized minerals and specialty chemicals businesses in India. The company offers industrial minerals, such as ground calcium carbonate, dolomite, hydrous and calcined kaolins, talcs, natural barytes, silica/quartz, muscovite mica, feldspar/nepheline syenite, diatomaceous and siliceoaus earth, bentonite and attapulgite, and natural and synthetic red oxide. It also provides functional additives and specialties, including white/buff and colored, rutile TiO2, white pigment opacifiers, synthetic barium sulphate, micronized wax, anti-blocking additives, rheological additives, matting agents, inorganic thickeners, flame retardants, calcium oxide desiccant, activators for rubber, high aspect ratio talc, sub-micron CaCO3, and decorative colored quartz sand; erueca mide, olea mide, and processing aids; and fumed, precipitated, and amorphous silica. The company serves paints and coatings, inks and pigments, plastics and polymer, paper, rubber, cosmetics, ceramics, adhesive and sealant, oil-well drilling, agrochemicals, foundry, and other industries. It also exports its products. The company was incorporated in 1987 and is headquartered in Vadodara, India.

How the Company Makes Money

20 Microns Limited primarily makes money by manufacturing and selling micronized and surface-treated mineral products (industrial mineral powders and functional fillers/additives) to business customers. Its core revenue stream is product sales, where pricing and volumes are driven by demand from downstream industries (e.g., paints/coatings, plastics, rubber, paper, construction) that use these minerals to improve performance and/or reduce formulation costs. Earnings are influenced by its ability to (a) produce consistent particle-size and performance specifications, (b) provide application-focused grades (including value-added treated/engineered variants that typically command better realizations than commodity minerals), and (c) maintain distribution/supply relationships with industrial customers that purchase on repeat, specification-based demand. Specific details on significant partnerships and the exact split of revenue by product line or customer segment are null.

20 Microns Limited Financial Statement Overview

Summary

Strong income statement performance (revenue growth and high gross/EBIT margins) and a solid balance sheet (manageable leverage and healthy equity base) are partly offset by weaker cash flow quality, with significantly lower free cash flow and only moderate cash conversion.

Income Statement

20 Microns Limited has shown strong revenue growth with a notable increase from the previous year, indicating a positive trajectory. The company has consistently improved its gross profit margin, reaching 46.97% in the most recent year. The EBIT margin is also robust at 38.78%, reflecting effective operational management. However, the EBITDA margin of 13.21% suggests potential areas for operational efficiency improvements. Overall, the income statement metrics highlight strong profitability and growth, though there's room for optimizing EBITDA.

Balance Sheet

The balance sheet of 20 Microns Limited is stable with a favorable debt-to-equity ratio of 0.39, indicating prudent leverage management. The return on equity (ROE) is impressive at 14.53%, showcasing effective use of equity capital. The equity ratio stands at 60.09%, highlighting a strong equity base relative to total assets. Despite these strengths, the company should remain vigilant about debt management to maintain financial stability.

Cash Flow

The cash flow statement reveals some challenges, as the free cash flow has decreased significantly, resulting in negative free cash flow growth. The operating cash flow to net income ratio is 0.51, indicating moderate cash conversion from earnings. The free cash flow to net income ratio is negative due to substantial capital expenditures, suggesting the need for careful capital investment planning. Overall, while the operating cash flow remains positive, the cash flow position could be improved with more efficient capital allocation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.20B	9.17B	7.76B	7.02B	6.11B	4.83B
Gross Profit	3.98B	4.31B	2.77B	3.24B	2.20B	1.64B
EBITDA	1.22B	1.21B	994.95M	886.70M	815.54M	607.63M
Net Income	623.61M	623.76M	560.70M	418.19M	345.85M	229.72M
Balance Sheet
Total Assets	7.42B	7.15B	5.90B	4.60B	5.15B	4.52B
Cash, Cash Equivalents and Short-Term Investments	583.46M	393.96M	606.82M	299.41M	168.49M	40.62M
Total Debt	1.63B	1.66B	1.22B	1.08B	1.23B	1.04B
Total Liabilities	2.83B	2.80B	2.36B	1.91B	2.63B	2.37B
Stockholders Equity	4.55B	4.29B	3.53B	2.94B	2.51B	2.14B
Cash Flow
Free Cash Flow	367.06M	-448.94M	345.62M	507.09M	79.27M	415.86M
Operating Cash Flow	524.39M	317.86M	544.43M	631.97M	353.20M	520.48M
Investing Cash Flow	-193.56M	-632.56M	-204.69M	-176.74M	-231.72M	-91.26M
Financing Cash Flow	-150.13M	140.21M	-55.10M	-379.73M	-36.04M	-452.65M

20 Microns Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 198.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:20MICRONS, the sentiment is Negative. The current price of 198.45 is above the 20-day moving average (MA) of 171.69, above the 50-day MA of 180.19, and below the 200-day MA of 209.90, indicating a bearish trend. The MACD of -6.24 indicates Positive momentum. The RSI at 26.44 is Positive, neither overbought nor oversold. The STOCH value of 9.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:20MICRONS.

20 Microns Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹9.84B	17.66	―	0.52%	28.67%	50.12%
INDOBORAX	63 Neutral	₹7.80B	24.50	―	0.38%	12.35%	6.79%
20MICRONS	62 Neutral	₹5.42B	12.55	―	0.63%	7.23%	5.00%
KHAICHEM	62 Neutral	₹4.77B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BODALCHEM	60 Neutral	₹5.49B	697.51	―	―	15.56%	2114.71%
SHIVALIK	57 Neutral	₹3.97B	51.21	―	0.13%	13.17%	-0.02%