MCON Rasayan

- Currently, MCON Rasayan India Limited is **not planning any immediate further borrowing** from banks; any new borrowing is expected **towards the end of the financial year**. - The **blended cost of borrowing** is around **8.5% to 8.7%**. - For FY27 and beyond, the company **expects to require funds** to sustain growth. - The planned approach for future fundraising is a **balanced mix of debt and equity**. - No specific timelines or amounts for equity raising are detailed yet, but it's part of the company's growth strategy.

- Expansion of government project division to increase market reach across Maharashtra, Goa, Gujarat, and Union Territories. - Potential capital expenditure ("capex") of a few lakhs to increase liquid product manufacturing capacity at Vapi plant by adding machinery. - Planning new FOCOs (Franchise Owned Company Operated units) with roughly 7,000 to 7,500 metric tons capacity each to expand production; two additional FOCOs planned currently. - No immediate plans for major new borrowing; incremental borrowing may happen by end of the financial year. - Possible future capex for establishing new plants in faraway zones (eastern or northeast regions) if large orders are received there. - Channel financing initiatives and inventory management improvements ongoing but not classified as capex. - Overall strategic focus on expanding product mix, better inventory management, and high-margin products to improve margins.

- Expecting over 50% year-on-year growth in sales revenue. - Targeting to reach ₹70 crore sales by the end of the current fiscal year (FY26). - Planning to grow from approximately ₹28 crore to ₹70+ crore within the year. - Aim to cross ₹100 crore revenue mark by next year (FY27). - Expansion through new FOCOs (Franchise Owned Company Operated units) to increase capacity by additional 7,000-7,500 metric tons per FOCO. - Government projects and infrastructure orders expected to contribute significantly and ramp up sales. - Liquid admixture division targeted to increase contribution from 13% to over 20% in FY26. - Continued focus on high-margin products and market expansion to sustain growth. - Expecting rapid market penetration increase from under 1% currently to about 1.5-2% in three years.

- Targeting over 50% year-on-year revenue growth in the next two to three years. - Shift towards higher-margin products (admixtures, paint division) expected to improve EBITDA gradually. - EBITDA margin improvement expected, aiming to reach 15% by FY27. - PAT expected to grow steadily with a focus on high-margin products and better working capital management. - ROE anticipated to reach double digits, likely after crossing the Rs 100 crore turnover mark (expected next year). - Working capital might remain stretched for 6-8 months due to rapid expansion but will improve thereafter. - Overall profit improvement driven by operational efficiencies, cost control, and increased sales volumes. - EPS expected to improve alongside PAT growth as business scales and margin quality improves.

- MCON Rasayan India Limited operates primarily through a distributor model; hence, they do not maintain a traditional order book. - Orders come continuously month-on-month rather than being booked upfront. - For bigger builders and infrastructure companies, there are Letters of Intent (LOIs) but not confirmed orders. - Current LOIs (potential order backlog) stand at approximately ₹18–18.5 crore. - The mix of orders is roughly 70% low margin products and 30% high margin products. - Recent monsoon delays caused order postponements, but business normalcy and order inflows have resumed in the last 15 days. - Order dispatch turnaround time is quick, around 3 to 4 days from order receipt. - The company targets to increase contribution from higher-margin admixtures and liquid products in coming years.