1. At a Glance
20 Microns just dropped a Q1 FY26 net profit of ₹16.8 Cr on ₹247 Cr revenue, but the stock plunged 11%. Why? Market expected a blast, got a burp. Meanwhile, management quietly settled a ₹3.3 Cr labour claim, proving even nano-mineral makers face macro headaches.
2. Introduction
If 20 Microns were a movie, it’s “Honey, I Shrunk the Valuation.” Despite being India’s only player in sub-micron & nano minerals, the Q1 buzz got lost in dust clouds as investors sold the story.
3. Business Model – WTF Do They Even Do?
- Core: Micronized minerals → fillers & additives for plastics, paints, ceramics, etc.
- USP: Vertical integration from mining to nanosizing.
- Edge: Specialty chemicals division adding flavor to margins.
- Problem: Demand growth slower than expected; pricing power meh.
4. Financials Overview
- Q1 FY26 Revenue: ₹247 Cr (+7% YoY)
- Net Profit: ₹17 Cr (-5% QoQ)
- OPM: 13% (stable)
Verdict: Solid margin control, but revenue growth crawling like a miner in quicksand.
5. Valuation – What’s This Stock Worth?
- P/E: 13.6x (cheap-ish)
- Book Value: ₹122 (P/B 1.9x)
- Fair Value Range: ₹200–₹270
Punchline: Looks undervalued, but Mr. Market thinks it’s dust not diamond.
6. What-If Scenarios
- Bull: Global specialty demand lifts EPS → ₹300+
- Bear: Slowdown + high raw costs → ₹180
- Base: ₹220–₹260, range-bound till catalysts.
7. What’s Cooking (SWOT)
Strengths: Niche market leader, low P/E, diversified applications.
Weakness: Sluggish top-line growth, high working capital days (99).
Opportunities: Nano-material boom, specialty chemicals scaling.
Threats: Commodity cycles, Chinese competition.
8. Balance Sheet 💰
| Particulars (Mar’25) | ₹ Cr |
|---|---|
| Equity Capital | 18 |
| Reserves | 412 |
| Borrowings | 165 |
| Total Liabilities | 715 |
| Comment: Debt manageable, reserves healthy. |
9. Cash Flow (FY23–FY25)
| Year | CFO | CFI | CFF |
|---|---|---|---|
| FY23 | ₹63 Cr | -₹18 Cr | -₹38 Cr |
| FY24 | ₹54 Cr | -₹23 Cr | -₹3 Cr |
| FY25 | ₹32 Cr | -₹63 Cr | ₹14 Cr |
| Snark: CFO shrinking while capex eats cash – classic growth hangover. |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 16.3% |
| ROCE | 19.2% |
| OPM | 13% |
| D/E | 0.4 |
| Punchline: Ratios solid, but not Instagram-model sexy. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹702 Cr | ₹86 Cr | ₹42 Cr |
| FY24 | ₹777 Cr | ₹106 Cr | ₹56 Cr |
| FY25 | ₹913 Cr | ₹117 Cr | ₹62 Cr |
| Comment: Profits climbing, but FY26 Q1 wobbled. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| GMDC | 2,765 | 666 | 19 |
| Gravita | 3,869 | 312 | 43 |
| 20 Microns | 929 | 62 | 13 |
| Peer verdict: Cheap among peers, but lacks growth sparkle. |
13. EduInvesting Verdict™
20 Microns is a steady cash miner in a niche market. The sell-off looks overdone, but only a demand uptick or nano-tech breakthrough can make it shine like gold dust.
Written by EduInvesting Team | 28 July 2025
Tags: 20 Microns, Specialty Minerals, Q1 FY26 Results, EduInvesting Premium
