🧠 At a Glance
Blue Pearl Agriventures Ltd is a ₹57 stock with a ₹3,400 Cr market cap — and just ₹11 Cr in quarterly revenue. Once a sleepy foam company, now a textile firm, it has no promoter holding left, 620 working capital days, and a P/E of 5,409. Genius turnaround or operator ka Disneyland?
1. 🎬 Introduction with Hook
Welcome to the wild west of smallcaps.
Imagine a company with:
- ₹35 Cr revenue for FY25
- ₹0.64 Cr profit
- Zero promoter skin in the game
- But a 1-year stock return of 1100%+
- And now… FIIs have entered.
This isn’t a plot twist. This is Blue Pearl Agriventures Ltd — where fundamentals are a formality and valuations are vibes.
2. 🧵 WTF Do They Even Do? (Business Model)
- Original Avatar: Foam manufacturing with Korean collab (E-Wha Foam Korea).
- Now: Textile business. But very little detail on what type — spinning? weaving? synthetic blends? Unclear.
- Website: Still named bluepearltexspin.com (which screams 2004), with zero product-level clarity.
- Claimed verticals: Textile sales.
- What Screener shows: ₹11.48 Cr revenue in Mar 2025 quarter.
Let’s just say… Blue Pearl’s business model is as transparent as a foggy bathroom mirror.
3. 📊 Financials – Profit, Margins, ROE, Growth
| Metric | FY25 |
|---|---|
| Revenue | ₹35.33 Cr |
| Net Profit | ₹0.64 Cr |
| OPM (Operating Margin) | 2.21% |
| ROE | 2.12% |
| ROCE | 2.57% |
| EPS | ₹0.01 |
🧂 Fun fact: Stock is trading at a P/E of 5,409x. Even Byju’s unlisted PPT looks better.
4. 📈 Valuation – Is It Cheap, Meh, or Crack?
- Current Market Cap: ₹3,462 Cr
- Book Value per Share: ₹1.00
- Price / Book Value: 57.3x
- P/E Ratio: 5,409
- EV/EBITDA: Not worth calculating for ₹0.78 Cr EBITDA
- Promoter Holding: 0.08%
📉 Fair Value Range:
Even with the most generous textile multiple (30x EPS on optimistic ₹1.5 Cr PAT), you get:
FV = ₹1.5 Cr × 30 = ₹45 Cr market cap
Fair Value per share = ₹0.75 to ₹1.2
⚠️ Current Valuation: ~77x inflated.
That’s not “expensive”. That’s “NSE needs to step in” expensive.
5. 🍲 What’s Cooking – News, Triggers, Drama
🧨 Recent Drama:
- May 2024: CFO resigned. So did multiple directors.
- June 2024: Board approved 6 Cr warrants at ₹10/share.
- Feb 2025: Warrants converted to equity, leading to a huge jump in capital.
Translation:
👉 ₹60 Cr entered the company.
👉 Stock exploded from ₹5 to ₹57.
👉 Promoter holding disappeared.
👉 Public left holding the “bag”.
📉 Risky Trigger:
- No business visibility.
- No explanation for this “turnaround”.
- FIIs entered post price boom – possible operator coordination?
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | Mar 2025 |
|---|---|
| Equity Capital | ₹60.26 Cr |
| Reserves | ₹0.20 Cr |
| Debt | ₹0.00 Cr |
| Total Assets | ₹61.59 Cr |
👀 Observation:
- 99% of net worth = equity capital from warrant conversion
- Company is debt free, yes.
- But assets = money in bank, not machinery or inventory.
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net |
|---|---|---|---|---|
| FY24 | ₹0.20 | ₹0.00 | ₹0.10 | ₹0.30 |
| FY25 | ₹-59.58 | ₹-0.02 | ₹59.59 | ₹-0.01 |
🧨 FY25 Observation:
- ₹60 Cr came from financing (warrants)
- ₹59.5 Cr used in operations — where?!
- No fixed asset capex. No investing cash flow.
- Possibly related party payments? Not clarified.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| Debtor Days | 344 |
| Inventory Days | 152 |
| Payable Days | 10 |
| Cash Conversion | 487 Days |
| Working Capital | 620 Days |
This is not a textile business — this is a ‘give goods now, maybe pay someday’ experiment. That’s a red flag wrapped in a spreadsheet.
9. 💸 P&L Breakdown – Show Me the Money
| Particulars | FY25 (₹ Cr) |
|---|---|
| Revenue | 35.33 |
| Expenses | 34.55 |
| Operating Profit | 0.78 |
| Net Profit | 0.64 |
| Other Income | 0.00 |
| Depreciation | 0.00 |
| Interest | 0.00 |
Literally no depreciation, no interest, no other income. It’s like an Excel company — numbers appear, but where’s the underlying activity?
10. 🧠 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | Rev (Cr) | M.Cap (Cr) |
|---|---|---|---|---|
| Blue Pearl Agri | 5,409 | 2.12% | 35 | 3,462 |
| GHCL (textile) | 9.86 | 18.6% | 3,183 | 5,919 |
| SRF (Chemicals) | 78 | 10.4% | 14,693 | 97,420 |
| Tata Chemicals | 90 | 1.2% | 14,887 | 23,586 |
🙃 Verdict: Blue Pearl has the revenue of a paan shop and the valuation of a mid-cap FMCG.
11. 🕵️ Miscellaneous – Shareholding, Promoters
- Promoter holding dropped from 19.67% → 0.08%
- FIIs entered suddenly at 23.24% in Mar 2025
- Public holding shot up to 76.7%
⚠️ This is not normal behavior. A company where promoters vanish and FIIs appear after a 10x rally? Either you’re watching a multibagger in motion, or an operator doing yoga on SEBI’s head.
12. 🧠 EduInvesting Verdict™
This is not investing. This is reverse due diligence.
The financials are weak. Valuation is comical. Transparency is zero. And yet, the market is throwing money at it like it’s the next Aditya Birla Fashion.
📉 Fair Value Estimate:
₹0.75 to ₹1.2 per share (based on best-case ₹1.5 Cr PAT, 30x earnings)
👀 Current Price: ₹57+
💣 Overvalued by: ~50x
📌 Verdict:
This ain’t a textile stock. It’s a case study for NSE surveillance.
✍️ Written by Prashant | 📅 9 July 2025
Tags: Blue Pearl Agriventures, Textile Stocks, Operator Stocks, Penny to MegaCap, Preferential Allotment, NSE Surveillance, Microcap Bubble, EduInvesting
