Mohini Health and Hygiene

The company was established in 2009 as a company dealing with processing of raw cotton, trading in cotton yarn and textile fabric. Later, it changed its name and business and diversified into the health & hygiene products sector. Earlier the company was listed as Mohini Fibre, which was delisted. Later, in Feb 2018 the company was listed on the NSE SME platform at the IPO price of Rs. 42.

The current basket of products comprises of 100% Absorbent Bleached Cotton & 100% Absorbent Bleached Comber, earbuds, surgical tapes, wound plasters, gauze bandages and swabs etc. Later, the company also entered into face masks, PPE kits, sanitizers, gloves etc. The company has various national and international certifications.
Earlier the company was listed as Mohini Fibre, which was delisted. Later, in Feb, 2018 the company was listed on SME platform at the IPO price of Rs. 42.


|Financial Year|2017-18|2018-19|2019-20|
|Topline| 170 Cr | 145 Cr| 135 Cr|
|EBIDT| 18.5 Cr |20.5 Cr |17.1 Cr |
|Net Profit| 5 Cr |7.3 Cr |6.5 Cr |
|Cash Flow
from Operation| 3.4 Cr |14.2 Cr |16.2 Cr |

In the last three years, the company was not able to show any topline growth, and probably for that reason the share price languished. However, it may be noted that in 2017-18, 25% revenue comes from Ginning, Cleaning & Bailing of Bleached Cotton.

The company exports its product to various countries, and in fact recognized as a two-star export house. Foreign exchange earning has remained to the tune of 100 crores.

As per 2020 AR, only 6% of the revenue is coming from Ginning, Cleaning and Bailing of Bleached Cotton, and the rest 94% is coming from medicinal products. With the product shift, the topline has reduced from 170 crores [2018] to 135 crores [2020]. However, the net profit margin has improved from 3% to 5%. The company declared a net profit of 6.5 crores in 2020.
H1- 2020-21:
From the half yearly results published by company for the FY 2020-21, it appears that the company is on growth track. Revenue has gone up to 72 crores [62 crores in H1 2019-20] and profit has gone up to 7 crores [3.5 crores in H1 2019-20]. With this result we can expect an eps of Rs. 7 in 2020-21.

The makeover of the company from cotton ginning and cleaning to established suppliers of medicinal supply has been phenomenal. The change in product mix has improved the net profit margin, and despite drop in topline, EBIDT and NP figures have been maintained. Now the company is almost 100% in medicinal supplies. The company is introducing new value-added products on a regular basis where margins can be better.

The company is run by Avinash Bansal, a 35-year-old educated person, who personally holds 56% equity in the company. Promoters hold 62.3%, marginal increase in holding on year to year basis. Mr. Mukul Aggrawal, a respected individual investor holds around 8% of the company.

Cash flow figures from operating activity have been encouraging- 14.2 crores in 2019, and 16.2 crores in 2020. The figures give confidence that inventory and receivables are properly managed. Annual interest payment has been reduced from 6.6 crores [2018] to 4.3 crores [2020] showing proper service of debt and some repayment too.

Management has guided 20% topline growth in the financial year. Thus, we can estimate a conservatively, based on H1 published results a topline of 150 crores with a net profit of 12 crores in the current financial year. The company is available at a market cap of 40 crores.

Risk Factors:

  1. Investing in micro cap campanies are extremely risky and it can result in loss of 100% invested capital.
  2. The products of the company do not have high customer loyalty, and will not result in strong brand value even when successful.
  3. Competition from unorganized sector.

The thesis of Investment:

  1. A small growing company which can grow its topline at a decent pace for next many years.

  2. The products supplied by the company are largely supplied by unorganized players. With health consciousness, the market share of organized players is likely to improve.

  3. Confidence is management commentary.

  4. Attractive valuation- the company is available at 0.6 times book value and 7 PE [4 time 2020-21 estimated eps]

  5. Such businesses operate on a better net profit margin. NPM is increasing sequentially for the last 3 years and may increase in the future. Decent margin improvement has been there in H1 2020-21.

  6. With topline growth and margin improvement, net profit can grow at a quicker pace.

  7. With growth coming back in the current financial year, p/e rerating is possible.

Kindly share your views.

[Disclosure: Invested]


source of management commentry. thanks

Any reason as to why the secretary, CFO and independent director are resigning in quick succesion?
Why is the company doing rating shopping (Crisil, Care then India ratings)?


I am not aware of any such developments. If anything specific your have found, kindly share. It will help us in better decision making.

I got these from Recent announcements and Credit ratings segment of’s-additional-bank-facility-‘provisional-ind-bbb’%2Fstable%3B-affirms-existing-ratings

Okay. Resignations are there, but not significant in my view.
H1 results are as expected on topline, bottom line, cash flow from operating activity. Margins have improved dramatically [looks like covid time effect when no discounts were needed]. Thanks for sharing.

A good video about company

Disc: No holding


Nicely compiled piece @rk1771
I used to track this company till early 2019.
There were succession concerns and internal tiffs after the demise of the founding family member.
And the stock was on a lower circuit spree.
Resignations started after that.

By any chance, have you interacted with the management?

No, I have not interacted with the management.
Nevertheless, Avnish Bansal, the present MD has always shown deep faith in the business through the acquisition of shares. In fact, on one occasion he subscribed to the shares at a premium of Rs. 60 even before the IPO. He appears to be in control with 56% of shares.

The stock is on back to back upper circuit for last many days. Today huge quantity has been traded, almost 2% of the equity. Any idea, who is buying?

A fire broke out in Mohini Factory-
Fire Incident in Mohini.pdf (150.5 KB)

constantly going down after fire incident.
Not much info available about promoters.
As per prospects, no criminal case, just few taxation related cases.

Not paid/provided for tax in H1 !

The way co has diversified into health and hygiene, It appears very cheap at CMP 30.

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management should open up more about status of company and insurance etc.

Management has said in its NSE filing that “the Loss/damage is adequately covered by Insurance and we have already informed the Insurance Company about the Fire Incident.”
Of course it does take some time in assessing the losses.

Insurance claim settlement may take its own time. However, my main concern is when they would restart the production and start generating the revenues.

H2- 2020-21 results are disappointing. The topline has come down to 63 crores with a loss of around 2 crores.