We have written earlier on how our IR client 20 Microns is building a R&D focused business with considerable value addition, while the market perhaps still views it has a plain vanilla mining and mineral business. It is incredible how market is driven more by perceptions rather than real research.
A recent article in the a business daily The Financial Express does a wonderful job of explaining this painstaking business transformation the management of 20 Microns is putting together. We would highly recommend serious investors to check this aptly titled article out: “The ‘boring’ mineral company quietly transforming into a specialty play”. Click here to read.
In brief, this is what the article says: 20 Microns has been steadily transforming from a traditional industrial mineral supplier into a specialty solutions provider. Instead of relying on commodity products for paints, plastics, and construction, the company now focuses on high-margin functional additives that require technical expertise and deeper customer engagement. This shift has helped it introduce over 40 new products across diverse segments, signaling a clear move toward value-added offerings.
Financially, the company delivered strong results in FY25 with revenues of ₹913 crore, EBITDA of ₹117 crore, and a healthy ROCE of around 19%. Despite a slowdown in paint demand during the year, margins improved to nearly 14%, thanks to cost discipline, vertical integration, and a better product mix. Captive mineral resources and efficient sourcing have insulated it from commodity price swings, making its earnings more resilient compared to typical cyclical players.
Looking ahead, 20 Microns is pursuing measured global expansion and maintaining capital prudence, with modest capex and strong interest coverage. While risks remain from cyclical demand and regulatory challenges, the company’s structural improvements suggest a long-term shift in its business model. Market valuations, however, still treat it like a commodity player, leaving room for a potential re-rating if it continues to demonstrate margin stability and consistent returns.