At a glance:
Monte Carlo Fashions Ltd just dropped its Q4 and FY25 results, and while the weather’s getting hotter, their financials were a cool breeze for long-term investors. With revenue inching up, margins holding strong, and a sweet dividend cherry on top, Monte Carlo is quietly knitting a comeback.
🧢 About the Company
- Name: Monte Carlo Fashions Ltd
- Headquarters: Ludhiana, Punjab
- Sector: Apparel & Retail
- Founded: 1984
- Known For: Premium woollen wear (because obviously), but now also full-stack men’s and women’s fashion including denim, casualwear, and home furnishing.
- Retail Presence: 335+ Exclusive Brand Outlets (EBOs), 2,500+ Multi-Brand Outlets (MBOs), strong e-commerce footprint
🧠 Key Managerial Personnel
| Name | Role |
|---|---|
| Mr. Rishabh Oswal | Executive Director |
| Mr. Gopal Gupta | Chief Financial Officer |
| Mr. H.S. Bhatia | Managing Director |
💰 FY25 Financials Summary
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹1,068.5 Cr | ₹1,036.7 Cr | 🔼 3.1% |
| EBITDA | ₹162.5 Cr | ₹153.8 Cr | 🔼 5.7% |
| PAT | ₹100.9 Cr | ₹90.3 Cr | 🔼 11.7% |
| EBITDA Margin | 15.2% | 14.8% | 🔼 40 bps |
| EPS (Basic & Diluted) | ₹48.74 | ₹43.66 | 🔼 11.7% |
| Dividend | ₹15/share | ₹12/share | 🎉 25% jump |
Q4 FY25 Snapshot:
- Revenue: ₹196.3 Cr
- PAT: ₹3.3 Cr
- EPS (Q4): ₹1.59
Basically, not a blockbuster quarter, but a stable finish to a decently profitable year.
🧮 Forward-Looking Fair Value (FV) Calculation
Let’s get nerdy and do some rough valuation:
- Trailing EPS: ₹48.74
- P/E Assumption (Industry avg): 15x (conservative, given textile cyclicality)
- Estimated FV: ₹731 per share
- CMP: ₹594.55
- Implied Upside: ~23%
🧠 This assumes moderate growth, but Monte Carlo has earnings leverage from any demand uptick or new product success.
📈 Estimated Growth & Industry Outlook
- Domestic Wearables Demand: Rebounding post-COVID with rising aspirations in Tier 2/3 cities
- Online Channel Growth: Monte Carlo has strengthened its D2C presence — no longer just your mall uncle brand
- Winterwear Legacy: Climate change may be making winters shorter, but Monte Carlo’s diversification into year-round fashion is working
- Capex: No new heavy investments — the company is running lean
- Dividend Policy: Clearly committed to rewarding shareholders
💡 The ₹15/share dividend is almost a 2.5% yield — pretty decent for a textile player!
🧵 EduInvesting Take
Let’s be honest — Monte Carlo isn’t exactly a hot stock. But it’s starting to quietly stitch together a turnaround story:
- 🧥 From a one-season brand to a year-round player
- 📦 Expanding margins despite subdued topline growth
- 💸 High RoE, generous dividends, clean balance sheet
It’s not shouting for attention like a Zudio or a Nykaa — but it’s the silent compounding type. You don’t buy it to triple in a year. You buy it so you can flex a 2.5% dividend and modest growth while wearing their sweatshirt.
🚨 Risks & Red Flags
- ❄️ Climate volatility: Winter sales still matter — a warm season can melt earnings
- 🛍️ High retail dependency: Slow mall footfall or offline slumps can sting
- 📉 Flat topline: Need to see stronger volume growth to get re-rated
- 🌍 Export minimal: Purely domestic exposure = currency risk insulated, but limited upside from global markets
🏁 Final Thoughts
Monte Carlo isn’t racing ahead, but it’s not unraveling either. FY25 was a year of steady cash flows, margin defense, and shareholder friendliness. If you’re into cozy balance sheets with a side of dividends — this stock might just warm up your portfolio.
🗓️ Published: May 27, 2025
✍️ By: Prashant Marathe
Tags: Monte Carlo Fashions, FY25 Results, Textile Stocks India, Dividend Paying Stocks, Retail Sector India, EduInvesting, Fashion Industry, NSE Stocks, Long-Term Value Picks, Monte Carlo Earnings
