At a Glance

M K Exim India is a profitable, low-debt multi-division company straddling textiles and FMCG cosmetics. With ₹93 Cr+ FY25 sales, ₹18 Cr profit, and 27% ROCE, it trades at just 14x earnings despite a luxury cosmetics distribution angle (Moroccanoil, Paul Mitchell). But the real question: is this biz scaling… or stalling?

1. 👔 Introduction with Hook

Imagine your dad runs a Jaipur textile mill, your mom sells spa kits on Instagram, and somehow both businesses are under one BSE-listed company.

That’s M.K. Exim (India) Ltd for you.
💬 “Textile se glamour tak, ek safar!”

2. 🧵 WTF Do They Even Do?

Two distinct divisions:

1. Textile Manufacturing

• Fabric weaving, dyeing, finishing
• Suitings: Polyester Viscose, Cotton blends, Premium wool
• Ready-made garments & government-approved relief suppliers

2. Cosmetics Distribution (FMCG)

• 🇺🇸 🇲🇦 Exclusive Indian rights for:
  • Moroccanoil
  • John Paul Mitchell Systems
  • K18 Hair Science
  • BCL Spa

⚠️ Yes, they sell premium hair & beauty brands. And no, this isn’t just a Shopify storefront.

3. 💰 Financials Overview – Profit, Margins, ROE, Growth

🟢 Stable business with juicy margins
🔴 Topline has stagnated past 2 years
⚠️ Cost controls & cosmetics margin may be doing the heavy lifting.

4. 🔢 Valuation – Is It Cheap, Meh, or Crack?

• CMP: ₹62.9
• Market Cap: ₹254 Cr
• P/E: 14.1x
• Book Value: ₹24.1 → P/B: 2.6x
• Dividend Yield: 0.79%

🧮 Reasonable pricing for a profitable, clean company with brand distribution rights.
Not a screaming bargain, but not expensive either.

5. 🎭 What’s Cooking – News, Triggers, Drama

🧾 GST Notices & Statutory Drama

• May 2024: GST demand + penalty order
• Dec 2024: Show cause notice from GST authorities
• Feb 2024: Auditor resigned
• Jan 2024: Bonus share issue (1.35 Cr new shares allotted)

😐 Key Managerial Turnover:

• Company Secretary resigned twice in 12 months

➡️ Signs of operational pressure, possible compliance clean-up.

6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?

🧼 Almost debt-free, strong net worth, no capex-heavy aspirations

7. 💵 Cash Flow – Sab Number Game Hai

• FY25 CFO: ₹5 Cr
• FCF positive
• Capex: Minimal (~₹1 Cr per year)
• Financing: Negative cash flow (repaying or dividend)

🧠 Textbook definition of a slow, profitable, capital-light biz.

8. 📐 Ratios – Sexy or Stressy?

🔍 Working capital creeping up… inventory pile in FMCG or slow textile movement?

9. 💰 P&L Breakdown – Show Me the Money

Business is clean. Topline’s flat, but margins are holding strong.

10. 🏁 Peer Comparison – Who Else in the Game?

Verdict? MKEL offers higher ROE than Khemani, lower P/E than MRP, and operates in two unrelated sectors.

11. 🧪 Miscellaneous – Shareholding, Promoters

• Promoter Holding: 42.54% (steady increase)
• FII Holding: 0.05%
• Public: 57.4%
• Shareholders: 14,300+
• Bonus Issue: Jan 2024 (1.34 Cr shares issued)

✅ Promoters adding marginally
⚠️ No institutional interest (yet)

12. 🎯 EduInvesting Verdict™

“A 90s textile firm that now sells Moroccan hair oil and keeps margins better than Nykaa?”

It’s:
✅ Clean
✅ Low-debt
✅ Multi-division
✅ High-margin
✅ Steady growth

But also:
❌ Flat topline
❌ Auditor & GST red flags
❌ No real scale-up in sight yet

If FMCG sales surge or textile exports revive, this could break the ₹100 barrier again.

13. 💸 Fair Value Estimate (FV Range)

Assuming FY26 EPS growth to ₹5.5, and applying 12x–16x P/E:

🧮 EduInvesting FV Range: ₹66 – ₹95

If cosmetics scale, this could re-rate. If not, it’s still a safe ₹4–₹5 EPS compounder.

✍️ Written by Prashant | 📅 9 July 2025
Tags: M K Exim India, FMCG Cosmetics, Textile Stocks, Moroccanoil, John Paul Mitchell, Bonus Share, GST Notice, EduInvesting