FINANCIAL ANALYSIS REPORT Mohit diligence Limited

1. preface 

Company preface 

 Mohit diligence Limited( MIL), incorporated on 6 February 1991 in Surat, Gujarat as Mohit Fibres Private Limited, is a BSE and NSE- listed intertwined cloth company engaged in the manufacturing of Draw Texturised Yarn( DTY) and slate fabrics. 

 Despite headwinds, the synthetic cloth sector benefits from growing domestic venture demand, import diversification to 25 countries, and government schemes like the PLI for fabrics. 

This report evaluates Mohit diligence' fiscal performance over FY 2022- 23, FY 2023- 24, and FY 2024- 25 using intimately available data, to give stakeholders a clear picture of fiscal health, functional trends, and investment pitfalls. 

2. Company Overview
began yarn trading, set up weaving at Kim in 1993 and texturising in 1995; went public in 1996; added Silvassa texturising unit in 2005 and AAC block factory in 2009- 10. 

 Vertically integrated model POY carried and texturised into DTY; DTY woven into slate fabrics at the same Kim complex spread across 4 lakh sq. ft., enabling cost solidarity. 

 Exports DTY yarn under its own brand to 25 countries including South Korea, Germany, UK, Mexico, Thailand, Brazil, Vietnam, and Indonesia; holds Export House Status. 

 Diversified into AAC( Autoclaved Aerated Concrete) blocks at Palghar for the construction accoutrements request — a supplementary profit sluice.
Draw Texturised Yarn( DTY) all counts from 50 to 300 denier; flagship product, maturity of profit.  
request cap roughly Rs. 34 – 40 Cr( March 2026); book value Rs. 116/ share; P/ B rate of 0.20 x — stock trading at a steep reduction to net asset value; protagonist holding 54.9 with zero pledging

3. protagonist/ Author preface 

Mr. Sitaram Nandlal Saboo — Author and Administrative president

Author of shop; brings further than five decades of hands- on experience in yarn trading and cloth manufacturing; the strategic visionary behind MIL's original objectification and all early- stage growth. 

Mr. Narayan Sitaram Saboo — Managing Director and Chairman

 LLB graduate from Surat; joined father in yarn trading and manufacturing post-graduation; presently serves as both MD and Chairman, driving day- to- day operations and import strategy. 

Other Promoters and KMP 

Mr. Manish Narayan Saboo( Executive Director) Masters in Finance from Nottingham, UK; responsible for fiscal and marketing operations across cloth and AAC parts since 2006. 

Co-promoters Naresh Sitaram Saboo, Mohit Narayan Saboo, Anshula Sachinkumar Jain. No protagonist shares are pledged — a strong governance signal.

4. Financial Statement Analysis 

All numbers consolidated, Rs. Crore. Source BSE India, Screener.in, Value Research. 

4.1 Income Statement Analysis

• profit declined steadily from Rs. 170 Cr in FY23 to Rs. 112.40 Cr in FY25 — a 33.9 fall over two times — driven by weaker demand in domestic DTY requests and falling yarn realisations. 
•  The company turned loss- making in FY24( PAT of Rs. -1.56 Cr), reversing a small profit in FY23; FY25 continued with a loss of Rs. -1.44 Cr, though the loss narrowed quarter- on- quarter in FY25. 

4.2 Balance Sheet Analysis

• Total means declined modestly from roughly Rs. 290 Cr in FY23 to roughly Rs. 265 Cr in FY25, reflecting gradual debt reduction and limited new capital investment. 
•  Net worth has held steady at roughly Rs. 164 – 166 Cr, backed by minimum loss situations; book value of Rs. 116 per share versus a request price of Rs. 24 implies deep undervaluation( P/ B of 0.20 x). 

4.3 Cash Flow Statement Analysis

•  Operating cash overflows remained hardly positive, supported by deprecation add- back and effective working capital operation despite thin perimeters. 
•  Backing exoduses reflect gradational loan disbursements; borrowings declined from roughly Rs. 130 Cr to roughly Rs. 110 Cr over two times — a steady deleveraging signal. 

4.4 Key Financial Ratios

•  ROCE of just 0.05 in FY25 signals near- zero return on capital employed the business is slightly covering its cost of capital at current profit situations. 
•  P/ B of 0.20 x is one of the smallest in the sector, suggesting either deep undervaluation or that the request has priced in structural challenges. 

5. crucial perceptivity and Interpretation 

Strengths 

 Net worth of roughly Rs. 164 Cr versus request cap of Rs. 34 – 40 Cr — P/ B of 0.20 x provides a meaningful periphery of safety for value investors. 

No shares pledged by the protagonist group; 54.9 protagonist holding signals power confidence and reduces threat of forced selling. 

Active exports to 25 countries across Asia, Europe, and Americas reduce the threat on domestic request demand cycles. 

sins 

  profit fell 33.9 over two times; 5- time profit CAGR of-8.45 indicates structural decline rather than a temporary dip. 

OPM near 1 leaves no buffer against raw material cost increases or demand shocks; interest content rate is low.
Rs. 51.60 Cr in contingent arrears in FY25 — if crystallised, these would oppressively erode the net worth of Rs. 164 Cr. 

threat Factors 

 Raw Material threat POY prices are unpredictable and linked to crude oil painting/ petrochemical cycles; input cost harpoons compress formerly thin DTY perimeters. 

Demand wimpiness threatens Weakness in domestic fabric consumption and import order wimpiness from crucial requests like South Korea and Europe could sustain profit decline. 

Illiquidity threat Small- cap with a request cap under Rs. 40 Cr; thin trading volumes on BSE/ NSE make large- scale entry or exit delicate. 

unborn Outlook 

 Net loss narrowed successionally in Q3 and Q4 FY25 — from Rs. -1.02 Cr to Rs. -0.42 Cr — suggesting early signs of functional stabilisation that, if sustained, could drive a return to profitability. 

 Any recovery in DTY realisations or supplement in import demand, combined with the ongoing debt reduction line, could significantly ameliorate perimeters from the current sub-1 position. 

 The AAC block business at Palghar provides diversification into the construction accoutrements sector — a member with stronger medium- term demand winds from India's structure drive. 

6. Conclusion 

 Mohit diligence is a financially stressed but operationally complete cloth manufacturer making since FY24. Still, the balance distance remains technically solvent with a positive net worth of roughly Rs. 164 Cr, borrowings are declining, and daily trends in FY25 suggest the losses are stabilising. 

threat considerationUltra-thin perimeters, contingent arrears of Rs. 51.60 Cr, and declining earnings make this a high- threat, high- tolerance investment; not suitable for short- term or conservative investors. 

 Examiner Daily OPM trends, import order volumes, DTY price realisations, and contingent liability developments for signals of recovery.

7. Data Source 

• NSE India (nseindia.com) — Stock data, exchange disclosures
• Screener.in — P&L, balance sheet, ratios, shareholding data