Monte Carlo Fashions Ltd. (MONTECARLO) AI Stock Analysis

Monte Carlo Fashions Ltd.

(NSE:MONTECARLO)

Select Model

Rating:66.4Neutral

Price Target:INR 587.00▲(15.39% Upside)

Action:downgraded

Date:08/21/26

The score is primarily driven by solid FY2026 operating performance and attractive valuation (low P/E and healthy dividend). These positives are tempered by rising leverage and uneven cash flow consistency, while technicals remain mixed with a still-weak longer-term trend (below the 200DMA) and negative MACD.

Positive Factors

Revenue ReboundThe return to double-digit growth indicates renewed demand for Monte Carlo’s branded apparel. Sustained category and channel adoption could support revenue expansion over the next several quarters.

Negative Factors

Rising LeverageThe sustained increase in leverage reduces financial flexibility and raises sensitivity to weaker apparel demand, inventory pressure, or higher funding costs. It could constrain investment and shareholder returns during a downturn.

Monte Carlo Fashions Ltd. (MONTECARLO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 10.76B
Dividend Yield: 3.93%
Average Volume (3M): 4,506
Price to Earnings (P/E): 10.1
Beta (1Y): 1.15
Revenue Growth: 15.59%
EPS Growth: 34.06%
Country: India
Employees: 2,360
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Monte Carlo Fashions Ltd. Business Overview & Revenue Model

Company Description

Monte Carlo Fashions Limited manufactures and trades in woolen, cotton, cotton-blended, knitted, and woven garments for men, women, and kids in India and internationally. The company offers shirts, T-shirts, linen shirts, denims, trousers, jeans, sui...

How the Company Makes Money

Monte Carlo Fashions makes money primarily by selling branded apparel and related fashion products under the Monte Carlo brand through multiple go-to-market channels. Its core revenue stream is product sales (recognized when goods are sold/delivered)...

Monte Carlo Fashions Ltd. Financial Statement Overview

Summary

FY2026 showed a strong revenue rebound (+11.7%) and solid profitability (net margin ~8.8%, EBITDA margin ~17.8%) with improved earnings vs FY2025. Offsetting this, margins remain below FY2022–FY2023 levels, leverage has risen materially (debt-to-equity up to ~0.64 from ~0.23 in FY2022), and cash flow conversion has been volatile (including negative OCF/FCF in FY2023).

Income Statement

76Positive

Balance Sheet

68Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.86B	12.76B	11.00B	10.61B	11.18B	9.03B
Gross Profit	4.64B	4.20B	3.45B	4.04B	5.25B	3.76B
EBITDA	2.46B	2.63B	2.22B	1.71B	2.38B	2.05B
Net Income	1.05B	1.12B	811.70M	599.40M	1.33B	1.14B
Balance Sheet
Total Assets	0	19.20B	17.16B	15.16B	14.96B	11.22B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.16B	1.73B	1.29B	1.84B	2.09B
Total Debt	0	5.80B	5.14B	3.82B	3.31B	1.56B
Total Liabilities	-9.06B	10.15B	8.81B	7.21B	7.20B	4.34B
Stockholders Equity	9.06B	9.06B	8.34B	7.95B	7.76B	6.87B
Cash Flow
Free Cash Flow	-1.93B	627.20M	212.90M	466.90M	-585.90M	454.72M
Operating Cash Flow	-1.85B	1.01B	593.50M	814.60M	-52.90M	705.53M
Investing Cash Flow	60.00M	-452.70M	-456.00M	35.30M	-463.40M	-481.88M
Financing Cash Flow	1.81B	-548.30M	-142.50M	-852.20M	529.20M	-223.85M

Monte Carlo Fashions Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MONTECARLO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PAGEIND	67Neutral	INR 383.25B	50.91	―	1.75%	7.57%	-1.16%
IN:MONTECARLO	66Neutral	INR 10.55B	10.06	―	3.93%	15.59%	34.06%
IN:RUPA	61Neutral	INR 9.52B	12.60	―	2.50%	5.33%	-4.01%
IN:DOLLAR	56Neutral	INR 13.55B	12.08	―	1.26%	6.24%	15.54%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:GOCOLORS	50Neutral	INR 12.80B	24.28	―	―	-1.51%	-38.13%
IN:LUXIND	39Underperform	INR 33.85B	32.98	―	0.18%	10.61%	-33.91%

* General Sector Average

Performance Comparison

IN:MONTECARLO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MONTECARLO	Monte Carlo Fashions Ltd.	508.70	-196.73	-27.89%
IN:DOLLAR	Dollar Industries Ltd.	238.90	-111.08	-31.74%
IN:GOCOLORS	Go Fashion (India) Limited	243.35	-395.55	-61.91%
IN:LUXIND	Lux Industries Ltd.	1125.65	-141.26	-11.15%
IN:PAGEIND	Page Industries Limited	34360.30	-5723.96	-14.28%
IN:RUPA	Rupa & Co. Ltd.	119.75	-69.27	-36.65%

Monte Carlo Fashions Ltd. Corporate Events

Monte Carlo Fashions Schedules Q1 FY27 Earnings Call

Aug 5, 2026

Monte Carlo Fashions Ltd. has announced that its Board of Directors will meet on August 5, 2026, followed by a post‑results conference call to discuss its first‑quarter FY27 performance. The company has disclosed that the Q1 FY27 earnings...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 21, 2026

Monte Carlo Fashions Ltd. AI Stock Analysis