**BSE Scrip ID: MKPMOB | Scrip Code: 521244** MKP Mobility Limited (formerly **Chitradurga Spintex Limited**) is an Indian enterprise undergoing a comprehensive strategic transformation. Under new management, the company has successfully pivoted from its legacy textile operations toward a specialized focus on the **automobile and mobility sectors**. The company is currently positioning itself as a key player in the automotive aftermarket, logistics, and the emerging circular economy through vehicle recycling. --- ### **Strategic Pivot: From Textiles to Mobility Solutions** The company has formally exited the textile industry to concentrate resources on high-growth automotive segments. This transition is codified in the following structural changes: * **Amendment of Objects:** The company has deleted textile-related clauses (spinning, weaving, dyeing) from its **Memorandum of Association (MOA)**. * **New Core Focus:** Operations now center on the distribution of **two-wheeler and three-wheeler** spare parts, lubricants, and auto-care products. * **Geographic Realignment:** To align with the new management’s operational base, the company has shifted its Corporate Office to **Pune, Maharashtra**, and is in the final stages of regulatory approval to move its Registered Office from Karnataka to **GAT No. 624, Wadki, Pune - 412308**. --- ### **Operational Scope and Revenue Streams** MKP Mobility operates within a single primary business segment focused on the automotive sector, encompassing four key pillars: 1. **Distribution and Export:** Trading of automotive parts, industrial products, and mechanical/electronic components. 2. **Consumables:** Supply of high-turnover items including **lubricants, tyres, and batteries**. 3. **Refurbished Parts:** Active participation in the market for reconditioned automotive components. 4. **Logistics & Infrastructure:** The company is exploring a partnership with **Indian Oil Corporation** for warehouse and logistics management in Pune. Its modified objects also allow for future expansion into **electrical power generation** and infrastructure projects. --- ### **Expansion into the Circular Economy** A cornerstone of the company’s growth strategy is its entry into the vehicle recycling and metal scrap industry. * **Strategic Acquisition:** On **July 1, 2024**, the company acquired a **49% equity stake** in **MKP-Kataria Recycling Private Limited** (formerly CMR-Kataria) for **₹1.3 crore**. * **Recycling Capabilities:** This associate entity specializes in the treatment of **ferrous and non-ferrous metal scrap** and the processing of **End-of-Life Vehicles (ELV)** to produce shredded scrap for industrial use. * **Future Infrastructure:** Plans are underway to establish dedicated **vehicle scrap yards** in cooperation with industry partners. --- ### **Financial Performance and Capital Structure** The company achieved a significant financial turnaround in **FY 2023-24**, moving from a loss-making legacy entity to a profitable enterprise. **Comparative Standalone Financials:** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **₹33.31 crore** | **₹23.42 crore** | **₹13.28 lakhs** | | **Net Profit / (Loss)** | **₹94.16 lakhs** | **₹1.14 crore** | **(₹25.89 lakhs)** | | **Investment in Associate** | **₹1.3 crore** | **Nil** | **Nil** | **Capital Infusion and Liquidity:** * **Share Capital:** The **Authorized Share Capital** was increased from **₹5 crore to ₹10 crore**. The **Paid-up Share Capital** rose from **₹46.10 lakh to ₹3.41 crore** via preferential issues. * **Dividend Policy:** The Board has opted **not to recommend dividends** for **FY 2023-24** and **FY 2024-25** to conserve capital for expansion. * **Liability Management:** Trade payables were significantly reduced from **₹79.98 crore** in 2024 to **16.17 crore** in 2025. --- ### **Governance and Leadership** The company is led by a management team with deep roots in the automotive industry: * **Managing Director:** **Mr. Jitesh Patodia** was appointed for a **5-year term** (effective **September 20, 2025**). He brings over **25 years** of experience in the automobile sector. * **Vigilance:** The company maintains a **Whistle Blower Policy** and a **Vigil Mechanism** in compliance with **Section 177 (9)** of the Companies Act. --- ### **Risk Management and Compliance Profile** MKP Mobility manages risks through a Board-approved framework, focusing on financial stability and operational continuity. **1. Financial & Market Risks:** * **Credit Risk:** Managed by reviewing customer financial reliability and monitoring the ageing of **Trade Receivables**. * **Interest Rate Risk:** Exposure exists via **debt obligations with floating interest rates**. * **Market Integrity:** The company’s securities have been subject to **Graded Surveillance Measures (GSM)** by SEBI and Exchanges. **2. Actuarial Risks (Defined Benefit Plans):** The company utilizes Asset-Liability Management to neutralize valuation swings. Expected future contributions to benefit plans include: * **Year 4:** **₹0.23 million** * **Year 5:** **₹0.37 million** * **Years 6-10:** **₹7.21 million** **3. Regulatory & Administrative Challenges:** * **Filing Delays:** Secretarial audits noted delays in filing **e-form DIR-12** for the appointment of the Company Secretary and various Directors. * **Transition Status:** While the corporate office is active in Pune, the formal transfer of the Registered Office from Karnataka to Maharashtra is awaiting final regulatory clearance. --- ### **Investment Summary** MKP Mobility Limited represents a "turnaround" story, transitioning from a dormant textile firm to an active participant in the **Indian automotive aftermarket and recycling ecosystem**. With a **49% stake** in a recycling associate and a significant increase in **Total Income (from ₹13.28 lakhs to over ₹33 crore in two years)**, the company is aggressively scaling its operational footprint under new leadership. Investors should monitor the successful integration of the recycling business and the stabilization of administrative compliance as the company completes its relocation to Maharashtra.