Monte Carlo Fashions Shows Strong Profit Growth Amid Debt Concerns and Market Resilience

Monte Carlo Fashions, a microcap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's financial metrics indicate notable growth in key areas, with profit before tax (PBT) reaching Rs 12.54 crore, marking a significant increase of 620.69%. Additionally, the profit after tax (PAT) stood at Rs 16.26 crore, showcasing a growth rate of 102.2%.
However, challenges remain for Monte Carlo Fashions. The debtors turnover ratio is currently at a low of 2.59 times, indicating potential issues in collecting receivables. Furthermore, the debt-equity ratio is at its highest level of 0.89 times, suggesting a heavier reliance on debt financing. Non-operating income constitutes 42.42% of the PBT, which may raise concerns about the sustainability of earnings.

In terms of market performance, Monte Carlo Fashions has shown resilience compared to the Sensex. Over the past week, the stock returned 9.13%, significantly outperforming the Sensex's 1.68%. Over one month, the stock's return was 16.61%, while the Sensex returned 2.89%. Despite a year-to-date decline of 3.24%, the company has delivered a remarkable 302.45% return over the past five years, contrasting with the Sensex's 94.99% during the same period.