Mallcom (India) Ltd. (MALLCOM) AI Stock Analysis

• Market Cap: ₹6.39B
• Dividend Yield: 0.25%
• Average Volume (3M): 770.00
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.32
• Revenue Growth: 15.06%
• EPS Growth: 40.56%
• Country: IN
• Employees: 309
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Security & Protection Services
• EPS (TTM): 16.27
• Shares Outstanding: 6,240,000
• 10 Day Avg. Volume: 1,217
• 30 Day Avg. Volume: 770
• PEG Ratio: 0.23
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -9.90
• 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): 85.6
• Revenue Forecast (FY): ₹5.72B

• Rating: 71 Outperform
• Price Target: ₹1,248.00 ▲(5.45% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is primarily supported by strong operating performance and improving margins/ROE with manageable leverage, but is held back by poor cash flow generation (deeply negative free cash flow and weak cash conversion). Technical indicators are mixed with negative momentum signals, while valuation is reasonable on earnings but with a low dividend yield.

Positive Factors

Improving profitability and revenue growth

Consistent revenue growth and meaningful margin expansion reflect durable operational improvements. Higher gross and net margins plus a rising ROE point to better pricing power and cost control, supporting sustainable internal cash generation and reinvestment capacity over the medium term.

Manageable leverage and strong equity base

A low debt-to-equity ratio and a high equity share provide financial flexibility, lowering default risk and enabling the company to fund working capital or capex without immediate refinancing pressures. This balance-sheet strength supports resilience through industrial cycles.

Exposure to structural PPE and safety demand

A diversified product set across gloves, footwear, helmets and protective clothing positions the firm to benefit from long-term regulatory and safety-driven demand in industrial and institutional markets. Structural compliance needs create steady baseline demand and recurring sales.

Negative Factors

Deeply negative free cash flow

Large negative free cash flow constrains the firm's ability to self-fund growth, service debt, or pay dividends without external financing. Sustained negative FCF can force dilutive equity raises or higher leverage, undermining long-term strategic flexibility.

Poor cash conversion / earnings quality

Very low conversion of reported profits into cash indicates earnings may be driven by non-cash items or working capital timing. Persistent weak cash conversion raises the risk that reported margins are less durable and can pressure liquidity under slower collections or rising input costs.

Rising total debt and liabilities risk

Although leverage is currently manageable, an increase in overall debt and liabilities raises refinancing and interest-rate exposure. If growth stalls or cash conversion remains weak, higher liabilities could compress margins and reduce headroom for strategic initiatives.

Mallcom (India) Ltd. Business Overview & Revenue Model

Company Description

Mallcom (India) Limited, together with its subsidiaries, manufactures and sells personal protective equipment in India and internationally. The company offers head protection equipment comprising skull, face, ear, and eye; hand protection gears, such as latex, nitrile, leather, knitted, cryogenic, polyurethane, and neoprene gloves; body protection products, such as occupational, functional, work, and disposable wear; feet protection equipment, including safety shoes and shoe accessories; and harness, arresters, lanyards, connectors, and accessories for fall. It also exports its products. Mallcom (India) Limited was incorporated in 1983 and is headquartered in Kolkata, India.

How the Company Makes Money

Mallcom generates revenue primarily through the sale of its extensive range of personal protective equipment, which includes safety footwear, hand protection, head protection, and specialized clothing. The company operates on a B2B model, supplying products to various industrial sectors, which constitute its key revenue streams. Additionally, Mallcom benefits from partnerships with other companies and distributors to expand its market reach and product availability. By focusing on quality, compliance with safety standards, and diversification of its product offerings, Mallcom enhances its competitive advantage and drives sales growth. The company's ability to adapt to market demands and invest in research and development also plays a crucial role in maintaining its revenue generation capacity.

Mallcom (India) Ltd. Financial Statement Overview

Summary

Strong profitability and growth (revenue +15.7% YoY; gross margin up to 18.5%; net margin up to 11.8%; ROE up to 19.2%) and a manageable leverage profile (debt-to-equity 0.39). The main constraint is weak cash conversion and deeper negative free cash flow (-769.7m INR) with a very low operating cash flow to net income ratio (0.03).

Income Statement

Mallcom (India) Ltd. exhibits a strong income statement with consistent revenue growth and profitability. The company's gross profit margin increased to 18.5% in 2025 from 13.4% in 2024, indicating improved cost management. Net profit margin also rose significantly to 11.8% from 8.6%, reflecting enhanced operational efficiency. Revenue growth was robust at 15.7% year-over-year. The EBIT margin grew to 14.4% from 11.8%, and the EBITDA margin showed a slight decline from 14.7% to 12.5% due to changes in depreciation/amortization.

Balance Sheet

The balance sheet of Mallcom (India) Ltd. is stable with a debt-to-equity ratio of 0.39, which is manageable. The equity ratio increased to 60.6% from 61.3%, showing a strong equity position. Return on equity improved to 19.2% from 15.3%, indicating enhanced shareholder value. However, the increase in total debt and liabilities suggests a potential risk if not managed well.

Cash Flow

Mallcom (India) Ltd. faces challenges in cash flow management with a negative free cash flow of -769.7 million INR in 2025, down from -199.6 million INR in 2024. The operating cash flow to net income ratio dropped to 0.03, indicating issues in converting earnings into cash. However, the company has improved its ability to generate cash from operations, as shown by the operating cash flow increase in 2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.17B	4.70B	4.21B	4.11B	3.49B	3.08B
Gross Profit	872.79M	899.47M	562.34M	833.00M	604.73M	485.19M
EBITDA	589.81M	608.73M	618.21M	616.30M	528.22M	448.34M
Net Income	523.91M	574.35M	363.16M	369.37M	326.24M	282.68M
Balance Sheet
Total Assets	4.92B	4.93B	3.88B	3.54B	2.79B	2.53B
Cash, Cash Equivalents and Short-Term Investments	137.15M	189.58M	470.00M	670.19M	285.90M	494.96M
Total Debt	1.15B	1.16B	926.92M	907.34M	533.78M	568.50M
Total Liabilities	1.80B	1.94B	1.50B	1.51B	1.03B	1.06B
Stockholders Equity	3.12B	2.99B	2.38B	2.03B	1.68B	1.41B
Cash Flow
Free Cash Flow	-11.62M	-769.67M	-199.57M	76.08M	-225.59M	-78.51M
Operating Cash Flow	212.72M	17.00M	63.75M	534.52M	12.46M	188.23M
Investing Cash Flow	-139.95M	-431.07M	-97.75M	-750.42M	-19.59M	-115.56M
Financing Cash Flow	-67.02M	151.82M	-41.67M	330.33M	-14.07M	180.98M

Mallcom (India) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1183.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MALLCOM, the sentiment is Negative. The current price of 1183.55 is above the 20-day moving average (MA) of 1102.83, above the 50-day MA of 1122.13, and below the 200-day MA of 1229.82, indicating a bearish trend. The MACD of -31.34 indicates Positive momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MALLCOM.

Mallcom (India) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MALLCOM	71 Outperform	₹6.39B	18.46	―	0.25%	15.06%	40.56%
IRISDOREME	71 Outperform	₹5.58B	60.00	―	―	12.30%	92.63%
BIL	68 Neutral	₹9.50B	36.02	―	―	31.04%	6468.72%
SREEL	67 Neutral	₹4.28B	16.67	―	―	6.38%	1.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SATIA	60 Neutral	₹5.85B	5.94	―	0.44%	-9.42%	-56.27%
VARDMNPOLY	46 Neutral	₹3.49B	497.66	―	―	5.66%	―

Mallcom (India) Ltd. Corporate Events

Mallcom (India) Releases Q3 and 9-Month FY26 Earnings Presentation

Mallcom (India) Ltd. has released its earnings presentation for the third quarter and first nine months of fiscal year 2025-26, providing investors and analysts with detailed financial and operational updates for the period. The presentation, filed with the stock exchanges under SEBI’s disclosure norms and made available on the company’s website, is intended to enhance transparency for shareholders and other stakeholders by consolidating key performance metrics and business highlights for Q3 and the year-to-date period.

Mallcom (India) to Host Q3 FY26 Earnings Call on 22 January

Mallcom (India) Ltd has announced that it will hold a quarterly earnings conference call to discuss its financial performance for the third quarter of fiscal 2025-26. The call, organised with PhillipCapital (India) Private Limited and featuring senior company executives, is scheduled for January 22, 2026, at 4:00 pm IST, providing investors and analysts with an opportunity to gain insights into the company’s latest quarterly results and outlook, underscoring its ongoing engagement with capital market participants and regulatory compliance requirements.