Monte Carlo Fashions Ltd. (MONTECARLO) AI Stock Analysis

• Market Cap: ₹11.37B
• Dividend Yield: 3.63%
• Average Volume (3M): 2.06K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.00
• Revenue Growth: 6.08%
• EPS Growth: 31.43%
• Country: IN
• Employees: 2,020
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): -7.82
• Shares Outstanding: 20,732,063
• 10 Day Avg. Volume: 2,042
• 30 Day Avg. Volume: 2,062
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹647.00
• Price Target Upside: 17.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹647.00 ▲(17.94% Upside)

The overall stock score reflects strong financial performance and reasonable valuation, offset by mixed technical indicators. Monte Carlo's solid revenue growth and stable gross margins are significant positives, while concerns about profitability, leverage, and cash flow management pose risks. The technical outlook suggests caution, with neutral to bearish signals. The attractive dividend yield enhances the stock's appeal.

Monte Carlo Fashions Ltd. Business Overview & Revenue Model

Company Description

Monte Carlo Fashions Ltd. (MONTECARLO) is a prominent Indian fashion company specializing in the design, manufacture, and retail of high-quality apparel. Catering to a diverse demographic, the company offers an extensive range of products, including casual wear, formal wear, and knitwear for men, women, and children. With a strong presence in the domestic market, Monte Carlo is renowned for its contemporary designs and superior quality, operating through a mix of exclusive brand outlets, multi-brand outlets, and e-commerce platforms.

How the Company Makes Money

Monte Carlo Fashions Ltd. generates revenue primarily through the sale of its apparel products. The company's key revenue streams include retail sales through its vast network of exclusive brand outlets and multi-brand outlets across India. Additionally, Monte Carlo leverages e-commerce platforms to reach a wider audience and enhance its sales. The company also engages in strategic partnerships with various retail chains and online marketplaces to expand its market presence and increase sales volume. Its focus on quality, brand reputation, and customer satisfaction significantly contributes to its earnings.

Monte Carlo Fashions Ltd. Financial Statement Overview

Summary

Monte Carlo Fashions Ltd. demonstrates solid revenue growth and operational efficiency, with a stable gross profit margin. However, fluctuations in net profit margin, declining ROE, and a rising debt-to-equity ratio highlight concerns about profitability, equity utilization, and increased leverage. Cash flow metrics indicate potential liquidity challenges.

Income Statement

Monte Carlo Fashions Ltd. exhibits strong revenue growth, with a notable increase from INR 6,212 million in 2021 to INR 11,004 million in 2025. Gross profit margin has been stable, averaging around 31% to 35%. However, net profit margin has fluctuated, peaking at 11.85% in 2023 but dropping to 7.38% in 2025, indicating some profitability pressures. EBIT and EBITDA margins show healthy operational efficiency, though there's a decline in EBIT margin from 2024 to 2025.

Balance Sheet

The company maintains a solid equity base, with the equity ratio improving from 60.79% in 2021 to 48.63% in 2025. However, the debt-to-equity ratio increased to 0.62 in 2025, reflecting higher leverage. Return on Equity (ROE) decreased from 19.73% in 2023 to 9.73% in 2025, pointing to less effective equity utilization.

Cash Flow

Operating cash flow decreased significantly from INR 814.6 million in 2024 to INR 593.5 million in 2025. Free cash flow showed volatility, with a decline in 2025 compared to the previous year. The operating cash flow to net income ratio is less than ideal, indicating challenges in converting profits into cash.

Breakdown	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.00B	11.18B	10.61B	9.03B	6.21B
Gross Profit	3.45B	5.25B	4.04B	3.76B	2.49B
EBITDA	2.22B	2.38B	1.71B	2.06B	1.36B
Net Income	811.70M	1.33B	599.40M	1.14B	662.96M
Balance Sheet
Total Assets	17.16B	14.96B	15.16B	11.22B	9.37B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.98B	1.29B	2.09B	2.10B
Total Debt	5.14B	3.31B	3.82B	1.56B	1.18B
Total Liabilities	8.81B	7.20B	7.21B	4.34B	3.33B
Stockholders Equity	8.34B	7.76B	7.95B	6.87B	6.04B
Cash Flow
Free Cash Flow	212.90M	-585.90M	466.90M	454.72M	947.82M
Operating Cash Flow	593.50M	-52.90M	814.60M	705.53M	1.12B
Investing Cash Flow	-456.00M	-463.40M	35.30M	-481.88M	-822.00M
Financing Cash Flow	-142.50M	529.20M	-852.20M	-223.85M	-308.09M

Monte Carlo Fashions Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 548.60
• 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:MONTECARLO, the sentiment is Negative. The current price of 548.6 is below the 20-day moving average (MA) of 587.04, below the 50-day MA of 598.96, and below the 200-day MA of 663.05, indicating a bearish trend. The MACD of -12.22 indicates Positive momentum. The RSI at 27.49 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:MONTECARLO.

Monte Carlo Fashions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MONTECARLO	67 Neutral	₹11.37B	14.54		3.63%	6.08%	31.43%
MUNJALAU	65 Neutral	₹7.43B	20.43		1.32%	9.81%	-5.62%
CANTABIL	61 Neutral	₹20.67B	26.46		0.40%	19.03%	25.30%
Sector *	61 Neutral	$17.22B	11.53	-5.99%	3.08%	1.40%	-15.51%
RUPA	58 Neutral	₹16.94B	21.64		1.41%	-1.50%	2.97%
INDTERRAIN	48 Neutral	₹1.85B	―		―	-21.08%	-21.25%

Monte Carlo Fashions Ltd. Corporate Events

Monte Carlo Fashions Ltd. Announces Trading Window Closure

Monte Carlo Fashions Ltd. has announced the closure of its trading window in compliance with SEBI regulations and its internal code of conduct. This closure will be in effect from July 1, 2025, until 48 hours after the declaration of the company’s unaudited financial results for the quarter ending June 30, 2025. The decision reflects the company’s commitment to regulatory compliance and transparency in its financial reporting, potentially impacting stakeholders by temporarily restricting trading activities.