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Milton Cycle Unlisted Shares

51.7K

BUY

₹ 130.00

SELL

₹ 185.00

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As on May 30, 2026, we are buying shares of the MILTON CYCLE INDUSTRIES LIMITED for ₹ 130.00 and selling them for ₹ 185.00 per share.

About Milton Cycle Unlisted Shares

Milton Cycle Industries Limited (MCIL) started operations in 1960 as a component manufacturer, producing bicycle parts like chains, freewheels, and BB axles for Atlas Cycles. In July 2006, MCIL transitioned into a full-fledged bicycle manufacturing unit, serving as an ancillary to ACL’s Sahibabad division. Today, MCIL offers a variety of bicycle models, including kids’, fancy, and roadsters, distributed across Uttar Pradesh, Bihar, Jharkhand, Andhra Pradesh, and Nepal.

Business Division

Bicycle Manufacturing – MCIL manufactures a wide range of bicycles, including Roadsters, Mountain Bikes, City Bikes, Ladies’ Bikes, and Kids’ Bikes.
Dealer-Distributor Network – The company has an extensive network for sales and after-sales services across multiple regions in India and Nepal.
Manufacturing Facility – Located in Sonepat, Haryana, the plant spans 7.5 acres, producing up to 5,000 bicycles daily.

Financial Highlights

Revenue Trends – Highly volatile, peaking at ₹1825 Cr (2021) but dropping to ₹52 Cr (2022), recovering to ₹118 Cr (2023).
Raw Material Costs – Consistently high, consuming nearly 75% of revenue, pressuring profit margins.
EBITDA Losses – Negative across all years, worst at ₹-498 Cr (2022), improving slightly to ₹-432 Cr (2023).
Other Income – Surged to ₹638 Cr (2023), significantly offsetting operational losses.
PAT (Net Profit) – Negative in 2021-22 but rebounded to ₹163 Cr (2023), indicating financial recovery.
Trade Receivables – High at ₹1424 Cr (2023), showing improved collection efforts.
Borrowings – Nil since 2021, reducing financial risk and ensuring stability.

Pros

Diverse Product Range – Offers roadsters, mountain bikes, city bikes, ladies’ bikes, and kids’ bikes, catering to multiple customer segments.
Strong Distribution Network – Presence in Uttar Pradesh, Bihar, Jharkhand, Andhra Pradesh, and Nepal ensures wide market reach.
Debt-Free Operations – No borrowings since 2021, reducing financial risk and ensuring long-term sustainability.

Cons

Thin Profit Margins – High raw material costs (75% of revenue) limit profitability and pricing flexibility.
Revenue Volatility – Sales dropped from ₹1825 Cr (2021) to ₹52 Cr (2022), showing inconsistent performance.
Intense Competition – Faces stiff competition from unorganized players and Chinese bicycle manufacturers, impacting market share.