🪞 At a Glance
Mish Designs, a BSE-SME listed women’s wear label, once strutted down the IPO ramp at ₹271 but has since tripped hard to ₹60—a -77% crash. Despite 35%+ sales growth, solid export traction, and no debt, the stock’s working capital mess and sliding ROCE have investors wondering if this fashion house is actually financially fashionable.
1. 🎣 Hook – “From Zara to Zyada Zameen Pe”
IPO dreams were stitched in satin. But today? Mish Designs is less Vogue, more Value Trap.
This fast-fashion exporter boasted trendy brands (MISH, CURVES BY MISH, ZOEY) and a 161% 3-year PAT CAGR. But what’s the use when:
- Cash flows are negative 📉
- ROCE is down from 28.5% → 9.05% 🧯
- Debtor days hit 202 days 💀
It’s giving “Instagram influencer with 1 million followers but no brand deals” energy.
2. 👚 WTF Do They Even Do?
Mish Designs Ltd is a designer and manufacturer of women’s apparel targeting trendy fast-fashion consumers.
🛍️ Product Categories:
- Western dresses
- Co-ords
- Palazzos, trousers
- Tops, T-shirts
🏷️ Brand Portfolio:
- MISH and CURVES BY MISH (domestic)
- ZOEY (exports to UAE)
🎯 Model:
- No in-house factories — largely processes fabrics via third-party vendors
- D2C retail + Export
- 1000+ SKUs live
3. 💰 Financials – Profit, Margins, Growth, ROE
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (₹ Cr) | 4.2 | 7.3 | 11.1 | 13.1 | 18.0 |
| EBITDA (₹ Cr) | 0.14 | 0.34 | 1.24 | 1.55 | 1.43 |
| Net Profit (₹ Cr) | 0.00 | 0.05 | 0.51 | 0.81 | 0.89 |
| ROE (%) | 5.8% | 11.2% | 28.5% | 16.3% | 6.1% |
| EPS (₹) | 0.00 | 2.00 | 2.55 | 2.89 | 2.80 |
⚡ PAT Growth (3Y): 161% CAGR
🧨 But FY25 profit flatlined — only ₹0.89 Cr
📉 ROE and ROCE now both under 10%
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹60
- Market Cap: ₹19.1 Cr
- P/E (TTM): 21.5
- P/B: 1.07x
👗 Compared to Garment Peers:
| Company | P/E | ROE |
|---|---|---|
| Lux Ind | 26.8x | 10.0% |
| Kitex | 41.5x | 14.0% |
| Pearl Global | 30.3x | 23.2% |
| Mish Designs | 21.5x | 6.1% |
🎯 Verdict: Low valuation is justified by weak ROE and cash flows.
5. 🔥 What’s Cooking – Triggers, Worries, Chatter
📈 Positives:
- Sales up 37% YoY in FY25
- Steady product SKUs and brand expansion
- Appointed auditors, cleaned compliance (LODR)
💀 Red Flags:
- Stock down 77% from IPO
- No dividends
- ROCE crashing despite revenue growth
- Cash flows = negative for 3 years
- Inventories ballooned (314 days)
👀 No visible scams. Just…not enough growth for the valuations paid at IPO.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings | ₹3.0 Cr | ₹1.85 Cr | ₹1.49 Cr |
| Net Worth | ₹2.2 Cr | ₹11.4 Cr | ₹17.9 Cr |
| D/E Ratio | 1.4x → | 0.16x |
✅ Debt-free almost
✅ Net worth expanded after IPO
⚠️ But rising current liabilities and poor asset productivity are concerns.
7. 💸 Cash Flow – Sab Number Game Hai
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | –₹1.2 Cr | –₹6.3 Cr | –₹5.0 Cr |
| CFI | –₹0.1 Cr | –₹0.03 Cr | –₹0.01 Cr |
| CFF | ₹1.3 Cr | ₹6.9 Cr | ₹4.95 Cr |
🚨 Operating cash flow negative despite net profit.
🧠 Reason: Huge receivables (202 days) + bloated inventories.
Basically: They sell well. But they don’t collect cash well.
8. 📉 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 9.05% |
| ROE | 6.06% |
| Debtor Days | 202.5 |
| Inventory Days | 314 |
| Payable Days | 116 |
| CCC | 400+ days 😬 |
🧾 Working Capital Days = 376
Translation: The money is chilling with customers.
9. 🧾 P&L Breakdown – Show Me the Money
FY25 Snapshot:
- Sales: ₹18.01 Cr
- EBITDA: ₹1.43 Cr
- PAT: ₹0.89 Cr
- OPM = 7.94%
- NPM = 5%
So for every ₹100 sold, they made ₹5… on paper.
10. 🥊 Peer Comparison – Who Else is in the Game?
| Company | Sales (Cr) | PAT (Cr) | ROE | OPM | P/E |
|---|---|---|---|---|---|
| Page Ind | 4,935 | 729 | 48.5% | 21.5% | 75x |
| Pearl Global | 4,506 | 227 | 23.2% | 9.0% | 30x |
| Kitex | 983 | 135 | 14% | 20.4% | 41.5x |
| Mish Designs | 18 | 0.89 | 6.1% | 7.9% | 21.5x |
📉 Peers are at least 10x bigger with better cash efficiency.
Mish is not in the same league (yet).
11. 🧵 Misc – Promoters, Shareholding, Gossip
| Holder | Nov ‘23 | Mar ‘25 |
|---|---|---|
| Promoters | 68.39% → | 64.54% |
| Public | 31.4% → | 35.46% |
📉 Promoter dilution, but no pledging
🧹 Compliance cleanups done (LODR, audit filings)
No major red flags — just underperformance.
12. 🎯 Fair Value Range – Catwalk or Catastrophe?
Let’s say FY26 PAT = ₹1.2 Cr (30% growth)
- 15x P/E = ₹18 Cr market cap
- 20x P/E = ₹24 Cr
- Shares = 3.18 Cr
🎯 FV/share = ₹56 – ₹75
💥 CMP = ₹60
→ Fairly valued now, maybe a little upside left only if execution improves and they cut working capital cycle.
🧠 EduInvesting Verdict™
Mish Designs is like a boutique store in a Zara world:
- Unique style ✅
- Fast-fashion appeal ✅
- Balance sheet? ❌
They’ve done the branding, but operations still need a glow-up.
It’s not a scam, but not a slam dunk either.
⚠️ If they reduce debtors, improve ROCE, and start cash flows — this ₹60 stock can strut again.
Otherwise? Just another fashion IPO that ran out of runway.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: Mish Designs Ltd, SME IPO Crash, Fast Fashion India, Working Capital Trap Stocks, FY25 Results Mish, Apparel SME Stocks, EduInvesting Deep Dive, Promoter Holding Trends, ROE underperformance
