Monte Carlo Fashions Ltd. (MONTECARLO) AI Stock Analysis

• Market Cap: ₹11.80B
• Dividend Yield: 2.83%
• Average Volume (3M): 6.47K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.17
• Revenue Growth: 8.10%
• EPS Growth: 59.25%
• Country: IN
• Employees: 2,020
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 51.61
• Shares Outstanding: 20,732,063
• 10 Day Avg. Volume: 2,853
• 30 Day Avg. Volume: 6,472
• PEG Ratio: 0.39
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 52.31
• 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: 73 Outperform
• Price Target: ₹634.00 ▼(-1.38% Downside)

Monte Carlo Fashions Ltd. scores well due to strong technical momentum and solid financial performance, despite some profitability and cash flow concerns. The valuation is moderate, providing a balanced view of growth potential and risk. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Sustained revenue growth

The company nearly doubled revenue over four years, indicating durable demand and successful scaling of its branded apparel business. Persistent top-line expansion supports investment in distribution, product development and fixed-cost absorption, enhancing long-term competitive position.

Stable gross margins

A stable gross margin band suggests consistent sourcing, pricing power, and product mix in core categories (knitwear/winter wear). This underpins sustainable operating profitability and resilience to input-cost cycles, enabling predictable contribution to operating expenses and investment plans.

Branded multi‑channel business model

Owning end-to-end product and a multi-channel distribution model (trade partners plus direct retail) preserves margin capture and brand control. This structural setup supports customer loyalty, faster product feedback loops, and diversified revenue streams over the medium term.

Negative Factors

Declining operating cash flow

A meaningful drop in operating cash generation reduces the firm’s ability to self-fund working capital, capex and dividends. Over several quarters this can force higher external financing, constrain growth investments, and expose the company to liquidity stress during cyclical downturns.

Rising leverage and falling ROE

Higher leverage paired with sharply lower ROE signals weakening returns on shareholder capital and greater reliance on debt. This combination reduces financial flexibility, raises interest burden sensitivity, and may limit the company’s ability to fund expansion without diluting equity or increasing risk.

Fluctuating net profit margins

Volatile net margins indicate pressure from costs, pricing or channel mix changes and reduce predictability of earnings conversion. Persistently lower margins undermine cash flow generation and make it harder to sustain investments in brand, inventory and retail expansion over the medium term.

Monte Carlo Fashions Ltd. Business Overview & Revenue Model

Company Description

Monte Carlo Fashions Limited engages in manufacturing and trading woolen/cotton readymade apparels under the Monte Carlo brand in India and internationally. The company provides shirts, trousers, denims, Bermudas, lowers, hi-street fashion shirts, tops, dresses, jumpsuits, urban tunics, shrugs, shorts, capris, narrow pants, leggings, track suits, T-shirts, ties, belts, and socks for men, women, and tweens. It also offers home furnishings and kids' apparel. The company sells its products through approximately 298 executive brand outlets, 1777 multiple brand outlets, 622 national chain stores, and 153 shop-in-shop stores, as well as through e-commerce portals. Monte Carlo Fashions Limited was incorporated in 2008 and is based in Ludhiana, India.

How the Company Makes Money

Monte Carlo Fashions Ltd. generates revenue primarily through the sale of its apparel products, which are marketed under its own brand name. The company's revenue model is driven by direct sales from its retail stores, e-commerce platforms, and wholesale distribution to third-party retailers. Key revenue streams include seasonal collections, which attract consumer interest and drive sales, as well as a strong presence in both urban and rural markets. Additionally, strategic partnerships with various retail chains and online marketplaces further enhance its reach and sales volume. The company also benefits from brand loyalty and repeat purchases due to its established reputation for quality and style.

Monte Carlo Fashions Ltd. Financial Statement Overview

Summary

Monte Carlo Fashions Ltd. demonstrates solid revenue growth and operational efficiency, supported by a stable gross profit margin. However, fluctuations in net profit margin and declining ROE highlight profitability and equity utilization concerns. The rising debt-to-equity ratio suggests an increased reliance on leverage, while 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.13B	11.00B	10.61B	11.18B	9.03B	6.21B
Gross Profit	4.90B	3.45B	4.04B	5.25B	3.76B	2.49B
EBITDA	2.21B	2.22B	1.71B	2.38B	2.06B	1.36B
Net Income	781.20M	811.70M	599.40M	1.33B	1.14B	662.96M
Balance Sheet
Total Assets	0.00	17.16B	15.16B	14.96B	11.22B	9.37B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.73B	1.29B	1.84B	2.09B	2.10B
Total Debt	0.00	5.14B	3.82B	3.31B	1.56B	1.18B
Total Liabilities	-8.34B	8.81B	7.21B	7.20B	4.34B	3.33B
Stockholders Equity	8.34B	8.34B	7.95B	7.76B	6.87B	6.04B
Cash Flow
Free Cash Flow	0.00	212.90M	466.90M	-585.90M	454.72M	947.82M
Operating Cash Flow	0.00	593.50M	814.60M	-52.90M	705.53M	1.12B
Investing Cash Flow	0.00	-456.00M	35.30M	-463.40M	-481.88M	-822.00M
Financing Cash Flow	0.00	-142.50M	-852.20M	529.20M	-223.85M	-308.09M

Monte Carlo Fashions Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 642.90
• 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:MONTECARLO, the sentiment is Negative. The current price of 642.9 is above the 20-day moving average (MA) of 594.39, below the 50-day MA of 669.74, and above the 200-day MA of 627.43, indicating a bearish trend. The MACD of -28.26 indicates Negative momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 36.69 is Neutral, 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	73 Outperform	₹11.80B	12.12	―	2.83%	8.10%	59.25%
CANTABIL	70 Outperform	₹24.42B	31.13	―	0.39%	19.90%	27.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹11.92B	16.04	―	1.82%	0.78%	0.54%
MUNJALAU	56 Neutral	₹7.21B	21.56	―	1.24%	13.34%	-26.93%
INDTERRAIN	48 Neutral	₹1.70B	-12.61	―	―	-5.67%	71.26%

Monte Carlo Fashions Ltd. Corporate Events

Monte Carlo Fashions Publishes Q3 and Nine-Month FY2025 Financial Results in Newspapers

Monte Carlo Fashions Limited has announced that it has published its financial results for the quarter and nine months ended 31 December 2025 in the Business Standard and Desh Sewak newspapers, in line with SEBI’s listing and disclosure regulations. The disclosure underscores the company’s compliance with regulatory requirements on financial transparency for its stakeholders, with detailed results also made available through stock exchange and corporate channels, although no specific financial performance figures were highlighted in the announcement.