The stock has been under severe pressure, plummeting 63.62% over the past year and trading at ₹2.87 as of November 17, 2025, approximately 65% below its 52-week high of ₹8.12. The company's proprietary Mojo Score stands at a dismal 17 out of 100, earning a "Strong Sell" rating that reflects the confluence of operational challenges, deteriorating fundamentals, and bearish technical indicators.
Originally incorporated in 1983 as Remidicherla Power Limited and subsequently renamed MSR India Ltd. in June 2011, the company is engaged in infrastructure, construction, and related activities in India. However, the operational reality paints a concerning picture of a business that has effectively ceased commercial operations, with no revenue generation since March 2024 and a balance sheet characterised by negative shareholder funds and diminishing asset base.
Financial Performance: A Company in Suspended Animation
MSR India's Q2 FY26 results reveal a company trapped in operational limbo. The net loss of ₹0.05 crores, whilst marginally better than the previous quarter's ₹0.07 crore loss, represents a 89.80% improvement year-on-year compared to the ₹0.49 crore loss in Q2 FY25. However, this improvement is largely technical, stemming from reduced operational activity rather than any fundamental business turnaround.
| Quarter | Net Sales (₹ Cr) | Employee Cost (₹ Cr) | PBDIT (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|---|
| Sep'25 | 0.00 | 0.05 | -0.05 | -0.05 |
| Jun'25 | 0.00 | 0.07 | -0.07 | -0.07 |
| Mar'25 | 0.00 | 0.14 | -0.17 | -0.17 |
| Dec'24 | 0.00 | 0.14 | -0.14 | -0.14 |
| Sep'24 | 0.00 | 0.14 | -0.17 | -0.49 |
| Jun'24 | 0.00 | 0.07 | -0.07 | -0.07 |
| Mar'24 | 0.00 | 0.07 | -3.69 | 0.43 |
The quarterly trend table reveals the stark reality: MSR India has generated zero revenue for seven consecutive quarters through September 2025. Employee costs, whilst reduced from ₹0.14 crores in earlier quarters to ₹0.05 crores in Q2 FY26, continue to drain resources in the absence of any income-generating activities. The company's operating profit before depreciation, interest, and tax (PBDIT) stood at negative ₹0.05 crores, mirroring the net loss figure due to the absence of interest expenses and depreciation charges.
On a half-yearly basis for H1 FY26, MSR India accumulated losses of ₹0.12 crores (combining Q1 and Q2 losses), representing a 14.29% improvement from the ₹0.14 crore loss in H1 FY25. However, this marginal improvement offers little comfort given the complete absence of revenue generation and the company's inability to demonstrate any path towards operational viability.
Critical Operational Concern
Zero Revenue Generation: MSR India has not recorded any sales revenue since March 2024, indicating a complete cessation of commercial operations. With no visible business activity and continued cash burn through employee costs and administrative expenses, the company faces existential challenges regarding its going concern status.
Balance Sheet Deterioration: Negative Net Worth and Eroding Asset Base
MSR India's balance sheet as of March 2024 reveals a company in severe financial distress. Shareholder funds stood at ₹14.51 crores, comprising share capital of ₹31.44 crores offset by accumulated losses reflected in reserves and surplus of negative ₹16.93 crores. This represents a marginal improvement from ₹13.58 crores in March 2023, but the company's book value per share of ₹2.31 remains concerningly low relative to its face value of ₹5.00.
The company's fixed assets have collapsed from ₹11.72 crores in March 2023 to a mere ₹0.01 crores in March 2024, suggesting significant asset write-offs or disposals. Current assets declined from ₹0.88 crores to ₹0.44 crores over the same period, whilst current liabilities decreased from ₹7.67 crores to ₹2.67 crores, primarily driven by a reduction in trade payables from ₹1.62 crores to ₹1.03 crores. Long-term debt stood at ₹7.73 crores as of March 2024, down from ₹16.30 crores in the previous year, indicating some deleveraging activity.
The company's return on equity (ROE) stands at 0.0%, whilst its return on capital employed (ROCE) registers at negative 16.23%, both metrics highlighting the complete absence of profitability and value creation. With negative capital employed in the latest financial year, traditional profitability metrics have become meaningless, underscoring the severity of MSR India's operational collapse.
Five-Year Financial Trajectory
MSR India's financial decline has been precipitous and unrelenting. Revenue collapsed from ₹169.00 crores in FY19 to zero in FY24, representing a complete cessation of business operations. The company recorded a net loss of ₹4.00 crores in FY24, following a brief respite in FY23 when it posted a profit of ₹20.00 crores (largely driven by ₹21.00 crores in other income). Over the five-year period, sales growth has been negative 100%, whilst EBIT growth has declined by 161.37%, reflecting the complete evaporation of operational profitability.
Shareholding Pattern: Promoter Dilution Signals Distress
The shareholding pattern reveals a concerning trend of promoter stake reduction, potentially indicating financial stress or loss of confidence in the company's prospects. Promoter holding declined from 72.63% in June 2024 to 67.25% in June 2025, a reduction of 5.38 percentage points over five quarters. The most significant dilution occurred between March 2025 and December 2024, when promoter stake fell by 2.92 percentage points in a single quarter.
| Quarter | Promoter % | QoQ Change | FII % | Non-Institutional % |
|---|---|---|---|---|
| Jun'25 | 67.25% | -0.34% | 5.22% | 27.53% |
| Mar'25 | 67.59% | -2.92% | 5.22% | 27.19% |
| Dec'24 | 70.51% | 0.00% | 5.22% | 24.27% |
| Sep'24 | 70.51% | -2.12% | 5.22% | 24.27% |
| Jun'24 | 72.63% | — | 5.22% | 22.16% |
Foreign institutional investor (FII) holdings have remained static at 5.22% throughout the period, suggesting no fresh interest from sophisticated international investors. Notably, mutual funds, insurance companies, and other domestic institutional investors (DIIs) have zero exposure to MSR India, reflecting the company's complete absence from institutional portfolios. Non-institutional holdings increased from 22.16% to 27.53%, absorbing the stake diluted by promoters, likely representing retail investors or small proprietary traders.
The key promoters include Padmavathi Morthala (29.80%), Mortala Dheeraj Reddy (11.18%), Morthala Kanaka Vindya Prudhvi Reddy (10.73%), Kakunuri Venkata Rajasekhar Reddy (8.08%), and M Mallareddy (7.45%). Positively, there is no promoter pledging, which at least eliminates the risk of forced selling due to margin calls.
Stock Performance: Catastrophic Wealth Destruction
MSR India's stock performance represents one of the most severe cases of value destruction in the Indian equity markets. Over the past year, the stock has plummeted 63.62%, massively underperforming the Sensex, which gained 9.50% over the same period. This translates to a negative alpha of 73.12 percentage points, placing MSR India among the worst-performing stocks in the industrial products sector.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +17.14% | +1.69% | +15.45% |
| 1 Month | -2.38% | +1.19% | -3.57% |
| 3 Months | -3.04% | +5.40% | -8.44% |
| 6 Months | -31.34% | +3.18% | -34.52% |
| YTD | -57.29% | +8.72% | -66.01% |
| 1 Year | -63.62% | +9.50% | -73.12% |
| 2 Years | -74.05% | +29.12% | -103.17% |
| 3 Years | -59.80% | +37.57% | -97.37% |
The longer-term picture is even more devastating. Over three years, MSR India has declined 59.80%, underperforming the Sensex by 97.37 percentage points. The five-year return stands at negative 76.84%, whilst the ten-year return shows a catastrophic decline of 97.22%, effectively wiping out nearly all shareholder value over the past decade.
Recent trading sessions have shown some volatility, with the stock gaining 17.14% over the past week and 4.74% on November 17, 2025, to close at ₹2.87. However, this appears to be technical bounce rather than fundamental improvement, as the stock remains 64.66% below its 52-week high of ₹8.12 and trades just 28.70% above its 52-week low of ₹2.23. The stock's beta of 1.50 indicates high volatility, whilst its risk-adjusted return of negative 1.06 over one year places it in the "high risk, low return" category.
Peer Comparison: Bottom of the Barrel
When compared to peers in the industrial products sector, MSR India's positioning is starkly inferior across virtually every metric. The company's return on equity of 0.0% compares unfavourably to peers such as Parmeshwar Metal (15.50%), Shilp Gravures (9.48%), and Baroda Extrusion (6.10%). Its price-to-book value of negative 1.70x reflects the market's assessment that the company's net worth is questionable at best.
| Company | P/E (TTM) | P/BV | ROE % | Debt/Equity | Market Cap (₹ Cr) |
|---|---|---|---|---|---|
| MSR India | NA (Loss Making) | -1.70x | 0.0% | 0.55 | 18.00 |
| Parmeshwar Metal | 10.46x | 1.46x | 15.50% | 0.12 | — |
| Cubex Tubings | 17.30x | 1.63x | 4.95% | 0.42 | — |
| Shilp Gravures | 48.92x | 1.34x | 9.48% | -0.31 | — |
| Baroda Extrusion | 32.51x | 7.93x | 6.10% | 0.27 | — |
| Sampann Utpadan | 43.19x | 20.26x | 0.0% | 10.42 | — |
MSR India ranks at the bottom of the peer group by market capitalisation at ₹18.00 crores, reflecting its micro-cap status and limited institutional interest. Whilst its debt-to-equity ratio of 0.55 appears moderate compared to some peers, this metric is misleading given the company's negative book value and absence of revenue-generating operations. The company's inability to generate returns on equity stands in stark contrast to operational peers, underscoring its status as a non-operating entity.
Technical Analysis: Mildly Bearish with Limited Support
From a technical perspective, MSR India exhibits a "mildly bearish" trend as of November 2025, with multiple indicators flashing warning signals. The stock trades below all key moving averages, including the 5-day (₹2.64), 20-day (₹2.61), 50-day (₹2.94), 100-day (₹3.05), and 200-day (₹3.74) moving averages, indicating sustained selling pressure across all timeframes.
The Moving Average Convergence Divergence (MACD) shows a mildly bullish signal on the weekly chart but remains bearish on the monthly timeframe, suggesting short-term technical bounce within a longer-term downtrend. The Relative Strength Index (RSI) offers no clear signal on the weekly chart but turns bullish on the monthly timeframe, indicating potential oversold conditions. Bollinger Bands show mildly bearish signals across both weekly and monthly periods, whilst the Know Sure Thing (KST) oscillator presents conflicting signals—mildly bullish weekly but bearish monthly.
Key technical levels include immediate support at ₹2.23 (the 52-week low), with resistance at ₹2.61 (20-day moving average area), ₹3.05 (100-day moving average), and ₹3.74 (200-day moving average). The stock would need to decisively break above ₹2.94 (50-day moving average) to signal any meaningful technical improvement, whilst a breach below ₹2.23 would expose further downside towards uncharted territory.
"With zero revenue for seven consecutive quarters, negative book value, and a 'Does Not Qualify' quality rating, MSR India represents a textbook case of corporate distress—a company existing in name only, with no visible path to operational recovery."
Valuation Assessment: Risky and Uninvestable
MSR India's valuation metrics are largely meaningless given its loss-making status and absence of revenue generation. The company carries a "Risky" valuation grade, having been classified as such since April 2023. With a P/E ratio that is not applicable due to losses, an EV/EBITDA of negative 25.66x, and a negative price-to-book value of 1.70x, traditional valuation frameworks break down completely.
The company's enterprise value to capital employed stands at negative 8.58x, whilst its EV/Sales ratio is not applicable due to zero revenue. These metrics collectively paint a picture of a company whose market valuation reflects deep scepticism about its ability to return to operational viability. The last dividend payment of ₹0.10 per share occurred in September 2016, nearly nine years ago, with no dividend yield applicable currently.
MSR India's quality grade is classified as "Does Not Qualify," indicating that it fails to meet basic thresholds for quality company status based on long-term financial performance. The company's five-year sales growth of negative 100% and EBIT growth of negative 161.37% underscore the complete collapse of its business model. With an average ROCE of negative 16.23% and average ROE of 0.0%, the company demonstrates no capacity for value creation.
Investment Thesis: A Strong Sell on All Counts
MSR India's investment thesis, or lack thereof, can be summarised through its Mojo Score of 17 out of 100, placing it firmly in "Strong Sell" territory. The proprietary scoring system evaluates companies across four key parameters: valuation (Risky), quality grade (Does Not Qualify), financial trend (Flat), and technical trend (Mildly Bearish). All four parameters flash warning signals, creating a unanimous case for avoiding this stock.
The company's financial trend is classified as "Flat" for Q2 FY26, which might appear neutral on the surface but actually represents continued distress given the absence of revenue and ongoing losses. The technical trend of "Mildly Bearish" reflects the stock's position below all moving averages and sustained selling pressure. The quality assessment of "Does Not Qualify" indicates fundamental weakness in the business model, financial strength, and operational capability.
Key concerns limiting the score include the stock's bearish technical trend, flat financial performance in recent quarters, negative book value indicating weak long-term fundamental strength, and the company's status as a non-revenue-generating entity. The proprietary advisory system strongly recommends selling existing positions and avoiding fresh investments at any price level.
KEY CONCERNS
- Zero Revenue Generation: No sales for seven consecutive quarters through September 2025, indicating complete cessation of commercial operations
- Negative Book Value: Shareholder funds barely positive at ₹14.51 crores against accumulated losses, creating questionable net worth
- Catastrophic Stock Performance: 63.62% decline over one year, 97.22% decline over ten years, representing near-total wealth destruction
- Promoter Dilution: 5.38 percentage point reduction in promoter stake over five quarters signals potential distress or loss of confidence
- Zero Institutional Interest: No mutual fund, insurance, or DII holdings reflect complete absence from institutional portfolios
- Asset Base Collapse: Fixed assets declined from ₹11.72 crores to ₹0.01 crores, suggesting significant write-offs or disposals
- Quality Grade: Does Not Qualify: Fails to meet basic thresholds for quality company status based on financial performance
LIMITED POSITIVES
- No Promoter Pledging: Zero pledged shares eliminates risk of forced selling due to margin calls
- Marginal Loss Reduction: Q2 FY26 loss of ₹0.05 crores improved from ₹0.07 crores in Q1 FY26, though still negative
- Some Deleveraging: Long-term debt reduced from ₹16.30 crores (Mar'23) to ₹7.73 crores (Mar'24)
- Reduced Current Liabilities: Current liabilities declined from ₹7.67 crores to ₹2.67 crores year-on-year
- Recent Technical Bounce: 17.14% gain over past week suggests some speculative interest, though unsustainable
Outlook: What to Watch (Though Recovery Appears Unlikely)
For the small universe of existing shareholders or those monitoring MSR India for potential turnaround signals, several key monitoring points warrant attention, though the probability of meaningful improvement appears remote given the company's current state.
POTENTIAL CATALYSTS (Low Probability)
- Any announcement of contract wins or revenue generation in infrastructure/construction segments
- Capital infusion or strategic investor interest that could fund operational restart
- Asset monetisation or restructuring plan that could unlock value for shareholders
- Management communication outlining clear path to operational viability
RED FLAGS TO MONITOR
- Continued zero revenue generation in upcoming quarters (Q3 FY26 onwards)
- Further promoter stake dilution or distress sales
- Breach of debt covenants or inability to service existing obligations
- Going concern qualifications from auditors in annual financial statements
- Stock price breach below ₹2.23 (52-week low), exposing further downside
- Delisting risk if stock fails to meet minimum trading requirements
Given MSR India's current trajectory, the base case scenario involves continued operational dormancy, gradual erosion of remaining asset value, and persistent losses that further deplete shareholder funds. The company would need to demonstrate concrete evidence of contract wins, revenue generation, and a credible business plan before any reassessment of its investment merit becomes warranted.
The Verdict: Uninvestable on All Counts
Score: 17/100
For Fresh Investors: Avoid completely. MSR India presents no investment case whatsoever. With zero revenue for seven consecutive quarters, negative book value, catastrophic stock performance (down 63.62% in one year), and a "Does Not Qualify" quality rating, this micro-cap represents pure capital risk with no visible path to recovery. The company exists in name only, with no operational activity, no institutional interest, and no credible turnaround prospects.
For Existing Holders: Exit at any available price to limit further losses. The stock has already destroyed 97.22% of value over ten years, and continued holding exposes investors to complete capital erosion. With the company's operational status unclear, promoters diluting stakes, and technical indicators remaining bearish, there is no justification for maintaining exposure. Use any technical bounce as an opportunity to liquidate positions.
Fair Value Estimate: Not applicable given absence of revenue, earnings, and operational viability. Current market price of ₹2.87 may still overvalue the company given its distressed state.
Note— ROCE = (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Investing in micro-cap stocks like MSR India carries extremely high risk, including potential total loss of capital.
