Mallcom (India) Ltd – CMP – 1023

Recommendation: Accumulate

Fundamental Grade : B Grade

Brief about the company:

Established in 1983, Mallcom (India) Ltd. is an ISO certified and government-registered star trading house. The company is in the business of manufacturing Personal Protective Equipment and Industrial Safety products. Company is India’s LARGEST integrated head-to-toe personal protective equipment (PPE) manufacturer. It operates 13 MANUFACTURING units across India, equipped with best-in-class technologies and Markets products in over 50 COUNTRIES across six continents. The Company possessed the capacity to produce annually: 12 Million pairs of leather gloves, 8 Million knitted gloves, 3 Million shoes, 0.12 Million helmets, 3.3 Million units of apparel, 150 Million masks and 14 Million nitrile gloves

Performance during Last 5 years:

Revenue grown at a CAGR of 11% and profit grown at a CAGR of 35% whereas share price reported CAGR return of 32%during this period. Return on equity for the past 5 year is about 20%.

Future Outlook:

Growing preference for the world seeking to reduce its excessive dependence on China is an opportunity for the company. In the PPE sector, nearly 80% of the world’s safety accessories are generated out of China. Even a moderate shift of 20% away from China across the next five years could result in the non-Chinese proportion of trade doubling to 40%, almost three times the existing growth rate


At CMP, the stock is trading at PE of around 17 and P/B of around 2.91 which means the stock is fairly priced-in the near term growth. The stock may be considered for buying with long term horizon. Considering, the recent run-up in the stock, a staggered purchase is better with 30% at current price and another 30% on a dip of around 15-20% and balance thereafter.

Similar Posts