20 Microns Limited (20MICRONS) AI Stock Analysis

• Market Cap: ₹7.62B
• Dividend Yield: 0.65%
• Average Volume (3M): 9.40K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.00
• Revenue Growth: 7.23%
• EPS Growth: 5.00%
• Country: IN
• Employees: 384
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 4.93
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹200.00 ▲(4.36% Upside)

The overall stock score of 66 reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust revenue and profit growth, along with a solid balance sheet, are significant strengths. However, challenges in cash flow management and negative market momentum weigh on the score. The stock's low P/E ratio suggests potential undervaluation, providing a positive outlook for long-term investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for the company's products across various industries, supporting long-term business expansion.

Effective Cost Management

Effective cost management enhances profitability, allowing the company to reinvest in growth opportunities and maintain competitive pricing.

Strong Balance Sheet

A strong balance sheet with prudent leverage management provides financial stability and flexibility for future investments.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could constrain the company's ability to fund operations and growth initiatives.

EBITDA Margin Concerns

A relatively low EBITDA margin compared to peers may indicate inefficiencies, affecting profitability and competitiveness in the long term.

Capital Expenditure Strain

High capital expenditures without corresponding cash inflows can strain financial resources, necessitating improved capital allocation strategies.

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 generates revenue primarily through the sale of its industrial minerals and specialty chemicals to various industries including paints, coatings, plastics, rubber, and construction. The company's revenue model is based on direct sales to manufacturers and distributors, with a focus on long-term contracts that ensure steady cash flow. Key revenue streams include the sale of micronized minerals, which are critical for improving product performance in end-use applications. Additionally, the company benefits from strategic partnerships with other manufacturers and suppliers, which help expand its market reach and product offerings. By investing in research and development, 20MICRONS also creates value-added products that allow for premium pricing, further enhancing its profitability.

20 Microns Limited Financial Statement Overview

Summary

20 Microns Limited demonstrates strong financial performance with consistent revenue and profit growth, effective cost management, and operational efficiency. The balance sheet is solid with a strong equity position and manageable leverage. However, cash flow management poses challenges, with negative free cash flow growth and a need for more efficient capital allocation.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.30B	9.17B	7.76B	7.02B	6.11B	4.83B
Gross Profit	4.04B	4.31B	2.77B	3.24B	2.20B	1.64B
EBITDA	1.20B	1.21B	994.95M	886.70M	815.54M	607.63M
Net Income	613.75M	623.76M	560.70M	418.19M	345.85M	229.72M
Balance Sheet
Total Assets	0.00	7.15B	5.90B	4.60B	5.15B	4.52B
Cash, Cash Equivalents and Short-Term Investments	312.98M	393.96M	606.82M	299.41M	168.49M	40.62M
Total Debt	0.00	1.66B	1.22B	1.08B	1.23B	1.04B
Total Liabilities	-4.34B	2.80B	2.36B	1.91B	2.63B	2.37B
Stockholders Equity	4.34B	4.29B	3.53B	2.94B	2.51B	2.14B
Cash Flow
Free Cash Flow	0.00	-448.94M	345.62M	507.09M	79.27M	415.86M
Operating Cash Flow	0.00	317.86M	544.43M	631.97M	353.20M	520.48M
Investing Cash Flow	0.00	-632.56M	-204.69M	-176.74M	-231.72M	-91.26M
Financing Cash Flow	0.00	140.21M	-55.10M	-379.73M	-36.04M	-452.65M

20 Microns Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 191.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 191.65 is below the 20-day moving average (MA) of 198.00, below the 50-day MA of 208.37, and below the 200-day MA of 215.90, indicating a bearish trend. The MACD of -5.45 indicates Negative momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.32 is Neutral, 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	₹12.74B	19.07	―	0.50%	28.67%	50.12%
20MICRONS	66 Neutral	₹7.62B	12.42	―	0.65%	7.23%	5.00%
INDOBORAX	63 Neutral	₹8.17B	21.10	―	0.41%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KHAICHEM	58 Neutral	₹9.98B	15.57	―	―	67.43%	―
SHIVALIK	54 Neutral	₹6.27B	44.13	―	0.12%	13.17%	-0.02%
BODALCHEM	52 Neutral	₹6.84B	19.30	―	―	15.56%	2114.71%