🧠 At a Glance
Beezaasan Explotech Ltd manufactures industrial explosives for mining, cement, roads, and defense. Its revenue has grown at a 43% CAGR over 5 years, while profits have exploded (pun intended) at a mind-bending 315% CAGR. But recent dips in promoter holding and dividend stinginess raise some smoke signals. So, is this a hidden dynamite stock or just a firecracker?
1. 🧲 WTF Do They Even Do?
Beezaasan Explotech is in the boom business. Literally.
- Makes slurry & emulsion explosives, detonating fuses
- Serves mining, cement, defense, Border Roads Organization (BRO), and even PSUs
- Based out of Rajasthan, with contracts across India
- Recently bagged a ₹14 Cr government order – ~6.5% of FY24 revenue
Translation: They supply the stuff that clears roads, digs minerals, and sometimes makes things go kaboom.
2. 💰 Financials – Boom Boom Pow
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Sales (₹ Cr) | 36 | 58 | 142 | 229 | 187 | 215 |
| Net Profit (₹ Cr) | 0 | 1 | 3 | 3 | 5 | 12 |
| OPM (%) | 5% | 5% | 5% | 4% | 6% | 10% |
| EPS (₹) | 0.02 | 1.75 | 4.36 | 4.20 | 5.36 | 9.52 |
🔥 CAGR (5Y)
- Sales: 43%
- Net Profit: 315% (we checked twice. Yes.)
- EPS: +200% club
But FY24 had a slight sales dip (₹229 Cr → ₹187 Cr) before rebounding in FY25.
3. 📉 Valuation – Dynamite or Dangerous?
- CMP: ₹245
- Market Cap: ₹317 Cr
- P/E: ~25.8
- Book Value: ₹74.3 → P/B: 3.3
- ROE (FY25): 20.5%
- ROCE (FY25): 22.4%
✅ Reasonable valuation considering:
- 10% OPM
- High ROE/ROCE
- Government & defense clients
🤏 But also:
- SME stock → low liquidity
- Promoter holding just dipped -25.4% QoQ (sus?)
🎯 Fair Value Range:
If we take FY25 EPS of ₹9.52 and apply a reasonable P/E band:
| Scenario | P/E | FV Estimate |
|---|---|---|
| Conservative | 18 | ₹171 |
| Reasonable | 24 | ₹228 |
| Bullish Boom | 28 | ₹267 |
👉 Current price of ₹245 falls in the “full pricing zone” – not overpriced, not cheap.
4. 🧠 What’s Cooking – Orders, IPO, & A Fuse of Uncertainty
- IPO was recently done, but no dividend declared yet
- ₹14 Cr government order in June 2025 (~6.5% of annual turnover)
- Authorized SEBI-compliant KMPs just appointed → transparency improving?
- “No deviation” in IPO funds usage → Good boy points scored
But why did promoters dump 25% of their stake right after IPO? 🤔
5. 📊 Balance Sheet – Boom or Bust?
| Metric | FY20 | FY25 |
|---|---|---|
| Equity Capital | ₹4 Cr → ₹13 Cr | |
| Reserves | ₹0 Cr → ₹83 Cr | |
| Borrowings | ₹13 Cr → ₹22 Cr (downtrend from ₹44 Cr in FY23) | |
| Fixed Assets | ₹8 Cr → ₹34 Cr | |
| Other Assets | ₹8 Cr → ₹82 Cr | |
| Total Assets | ₹21 Cr → ₹127 Cr |
🔋 Company is investing in assets, reducing debt = solid.
🧾 Debt/Equity ~ 0.26 → Not risky anymore.
6. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| 2023 | ₹17 Cr | ₹-12 Cr | ₹1 Cr | ₹7 Cr |
| 2025 | ₹4 Cr | ₹-35 Cr | ₹49 Cr | ₹18 Cr |
🧨 Spent a lot in capex (₹35 Cr), but funded it via financing inflow (₹49 Cr). Healthy operating cash.
7. 🧮 Ratios – Sexy or Stressy?
- OPM: 10% (FY25)
- ROCE: 22.4%
- ROE: 20.5%
- Inventory Days: 52
- Debtor Days: 11 → Fast money
- Cash Conversion Cycle: 63 days → Not great, but okay
📉 No dividend, despite ₹12 Cr profit. Cash hoarding or stinginess?
8. 🕵️♂️ Promoter Watch
- Promoter Holding: 70.66% (but was >90% pre-IPO)
- Public Holding: 20%
- FII + DII: 9.3% combined → not bad for an SME IPO stock
- No major pledging or insider drama, so far.
But 25% QoQ decline in promoter holding post-IPO = 🚨 Watchlist Alert
✅ EduInvesting Verdict™
Beezaasan Explotech is like a newly graduated IITian:
- 🎓 Top of the class (profit CAGR of 315%)
- 💣 From a niche but impactful field (explosives)
- 💼 Just got a good placement (Govt contracts)
- 🏠 But his parents sold 25% of the family house right after the results (👀)
So here’s the deal:
✅ If you believe in capex, infra, and defense stories – and can handle SME volatility, Beezaasan could be a smart pick.
❌ But don’t expect fireworks if promoters keep selling or dividends remain a myth.
🎯 FV Range: ₹171 – ₹267
📦 CMP: ₹245
🧨 Risk: Moderate
🚀 Upside: Limited unless profits go BOOM again
✍️ Written by Prashant | 📅 June 27, 2025
Tags: Beezaasan Explotech, explosives stocks India, SME IPO, defense suppliers, mining infra, EduInvesting, multibagger SME stocks, promoter selling, FY25 earnings
