Monte Carlo Fashions Ltd. (MONTECARLO) AI Stock Analysis

• Market Cap: ₹10.55B
• Dividend Yield: 2.83%
• Average Volume (3M): 6.47K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 1.18
• 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: 64 Neutral
• Price Target: ₹565.00 ▼(-12.12% Downside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven primarily by solid financial performance (growth and operating efficiency) but weighed down by weakening profitability/ROE and cash flow conversion. Technical indicators are notably bearish, while valuation and dividend yield provide meaningful support.

Positive Factors

Sustained Revenue Growth

Material revenue expansion over multiple years indicates successful brand traction and scale. A larger revenue base supports fixed-cost absorption, channel expansion and supplier negotiating power, underpinning durable top-line resilience over the next several quarters.

Stable Gross Margins

Consistent gross margins signal durable product economics and effective sourcing/pricing control. Stable gross profits provide a structural buffer to absorb SG&A or input cost shifts and support sustained operating profitability and reinvestment capacity.

Established Brand & Distribution

An owned brand with multi-channel distribution and in-house design/manufacture reduces dependence on third parties and supports pricing power. Diversified retail and wholesale channels lower concentration risk and sustain long-term consumer reach and margin capture.

Negative Factors

Falling Net Profitability

Declining net margins and ROE reflect weakening returns on capital and margin compression. Persistently lower profitability can constrain retained earnings for reinvestment, reduce shareholder returns and signal competitive or cost pressures that could persist medium term.

Weakened Cash Conversion

A sharp drop in operating cash flow reduces internal funding for capex, working capital and dividends. Poor cash conversion increases reliance on external financing and heightens vulnerability to seasonal or demand shocks, stressing financial flexibility over coming quarters.

Rising Leverage

Higher leverage raises interest and refinancing risk and narrows strategic optionality. With cash conversion weakening and returns falling, the increased debt burden can strain coverage metrics and limit investments or dividend policy resilience in an economic slowdown.

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

Strong revenue growth and generally healthy operating margins support the score, but weaker profitability (net margin down to 7.38% in 2025), declining ROE (to 9.73% in 2025), rising leverage (debt-to-equity 0.62), and softer cash conversion (operating cash flow down in 2025) temper it.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.42B	11.00B	10.61B	11.18B	9.03B	6.21B
Gross Profit	5.12B	3.45B	4.04B	5.25B	3.76B	2.49B
EBITDA	2.35B	2.22B	1.71B	2.38B	2.06B	1.36B
Net Income	863.40M	811.70M	599.40M	1.33B	1.14B	662.96M
Balance Sheet
Total Assets	19.53B	17.16B	15.16B	14.96B	11.22B	9.37B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.73B	1.29B	1.84B	2.09B	2.10B
Total Debt	7.43B	5.14B	3.82B	3.31B	1.56B	1.18B
Total Liabilities	11.19B	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	-1.93B	212.90M	466.90M	-585.90M	454.72M	947.82M
Operating Cash Flow	-1.85B	593.50M	814.60M	-52.90M	705.53M	1.12B
Investing Cash Flow	60.00M	-456.00M	35.30M	-463.40M	-481.88M	-822.00M
Financing Cash Flow	1.81B	-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: 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 642.9 is above the 20-day moving average (MA) of 550.87, above the 50-day MA of 579.24, and above the 200-day MA of 626.56, indicating a bearish trend. The MACD of -22.24 indicates Positive momentum. The RSI at 29.03 is Positive, neither overbought nor oversold. The STOCH value of 18.72 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
CANTABIL	70 Outperform	₹20.70B	13.08	―	0.39%	19.90%	27.94%
MONTECARLO	64 Neutral	₹10.55B	3.10	―	2.83%	8.10%	59.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹9.73B	19.56	―	1.82%	0.78%	0.54%
MUNJALAU	56 Neutral	₹7.49B	14.78	―	1.24%	13.34%	-26.93%
INDTERRAIN	48 Neutral	₹1.39B	17.32	―	―	-5.67%	71.26%

Monte Carlo Fashions Ltd. Corporate Events

NSE Seeks Clarification From Monte Carlo Fashions on Q3 FY25 Results

The National Stock Exchange has sought clarification from Monte Carlo Fashions Ltd. regarding its financial results for the quarter ended 31 December 2024, in line with Regulation 33 of SEBI’s Listing Obligations and Disclosure Requirements. The company has submitted its response through the NSE’s NEAPS platform, and the exchange has formally acknowledged receipt while noting that the contents of the submission are still pending verification, signaling an ongoing compliance review that stakeholders may monitor for any subsequent disclosures or regulatory outcomes.

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.