1. At a Glance
20 Microns Ltd is India’slargest micronised and nano-minerals player, with a niche in speciality chemicals. It serves paints, plastics, rubber, ceramics, and PVC industries. With₹929 Cr sales (FY25),₹62 Cr profit, andmarket cap ₹850 Cr, the company looks like a boring minerals supplier – until you realise it’s quietly compounding profits at21.5% CAGR over 5 years.
But – it’s no rocketship. Sales CAGR is ~11%, margins hover at 12–13%, and the stock fell 27% last year despite strong fundamentals. Why? High client concentration (top customer = 22% revenue), moderate debt, and being a midcap in a boring sector.
2. Introduction
20 Microns is like that uncle at weddings who doesn’t dance but quietly ensures the biryani masala is perfect. Its products are invisible to consumers but critical to industries:
- Paints need itscalcium carbonate & talcfor smooth finish.
- Plastics use itsbarytes & silicafor strength.
- Rubber, PVC, ceramics rely onmica, kaolin, additives.
It’s not glamorous like Asian Paints or flashy like Pidilite, but it sits deep inside their supply chain. If you’ve ever painted a wall, worn a shoe, or used plastic packaging – odds are, 20 Microns was in it.
The company is now stretching beyond minerals intospecialty chemicals (opacifiers, additives)andretail (fertilisers & construction chemicals). Plus, with aMalaysian mine acquisitionand aJV with Sievert (Germany), it’s trying to level up.
3. Business Model (WTF Do They Do?)
Core Vertical 1 – Industrial Minerals
- Calcium Carbonate, Talc, Baryte, Mica, Silica, Calcined Kaolin.
- Bread & butter business, used in paints, plastics, rubber, ceramics.
Core Vertical 2 – Specialty Chemicals / Additives
- Pigment opacifiers, synthetic aluminium silicate, flash calcined clay.
- Higher margin, tech-driven, less commoditised.
Core Vertical 3
– Retail
- Agrochemicals (Minfert)andConstruction Chemicals (20 MCC).
- Recently JV withSievert, Germanyto scale up construction materials.
Key Moat:Integrated model – mining → micronisation → nanosizing. Plus,9 plants, 12 warehouses, 5 captive mines(170 lakh tons reserves).
So the business model is “dig, crush, shrink, sell.” But with chemistry on top.
4. Financials Overview
| Metric | Q1 FY26 (Jun’25) | Q1 FY25 (Jun’24) | YoY % | QoQ % |
|---|---|---|---|---|
| Revenue (₹ Cr) | 247 | 231 | +7.2% | +8.8% |
| EBITDA (₹ Cr) | 32 | 30 | +6.7% | +10.3% |
| PAT (₹ Cr) | 16.9 | 18.0 | -5.5% | +13.6% |
| EPS (₹) | 4.8 | 5.1 | -6.0% | +11% |
Commentary:
- Revenue growth steady (mid-single digit).
- Margins stable ~13%.
- Profit dipped YoY due to higher costs, but sequentially improved.
- EPS annualised ~₹19.
5. Valuation (Fair Value Range Only)
- P/E Method:EPS ~₹19; current P/E = 13.6.Industry avg P/E ~17.FV Range =₹220 – ₹320.
- EV/EBITDA Method:EV = ₹974 Cr; EBITDA TTM ~₹118 Cr → EV/EBITDA ~8.2x.Fair range 7–9x → FV =₹210 – ₹270.
👉Fair Value Range = ₹220 – ₹300(educational only, not advice).
6. What’s Cooking – Triggers & Drama
- Capex Plan ₹70–80 Cr:Includes Malaysian
