🧠 At a Glance
Trom Industries Ltd, fresh from announcing a strategic MoU with Hermes Technologies, saw its stock nosedive 15% today. The JV was meant to:
- Build EV charging infra
- Deploy IoT-based smart city solutions
- Tap into public mobility & automation sectors
But instead of charging up, Trom just got short-circuited.
🛠️ What Did Trom Actually Announce?
- 📜 Signed a non-binding MoU with Hermes Technologies Pvt Ltd
- 🎯 Objective: Form a joint venture company
- 🔋 Focus: EV Charging, IoT automation, smart infra deployment
- 🏛️ Clients: Targeting state bodies, urban municipalities, smart cities, and PSU tenders
- 🌍 Global Ambition: Mentioned expanding into MEA & ASEAN (because why not?)
But let’s be clear — no order, no capex plan, no revenue forecast.
📉 Market Reaction: From “Trom Trom Boom” to “Trom Trom Doom”
| Date | CMP | % Move |
|---|---|---|
| June 3 | ₹196 | –15% |
Investors weren’t buying the vision. They were selling the vapourware.
🏭 About Trom Industries Ltd
Trom is a newly listed SME player in:
- Power electronics
- Smart metering
- Solar components
- Industrial automation systems
It has government and infra ambitions — but is still in early growth mode.
📊 Financial Snapshot (FY24)
| Metric | Value |
|---|---|
| Revenue | ₹82 crore |
| Net Profit | ₹4.8 crore |
| EBITDA Margin | ~9% |
| ROCE | ~10% |
| Market Cap | ~₹275 crore (before fall) |
Not bad, but tiny compared to the “EV infrastructure” dream it just pitched.
🧠 EduInvesting Take
“Every SME wants to become an EV infra giant overnight. But markets don’t run on intentions — they run on invoices.”
This JV smells like:
- A low-effort PR move
- No clarity on Hermes’ financials or credentials
- No mention of actual fund infusion, capex plan, or project pipeline
Just a two-page “let’s partner and explore things” MoU.
🧨 Red Flags
- ❌ No disclosure of Hermes’s credentials
- ❌ JV formation is conditional on due diligence
- ❌ No commercial contracts mentioned
- ❌ EV infra is crowded with real players like Tata Power, ChargeZone, Adani, Jio-bp
Worse? The market probably sensed insider exit or operator dump hiding behind the news.
🧮 Edu Fair Value Estimate (Post-Panic)
Let’s be harsh.
Assume FY26E EPS = ₹11
Assign P/E = 15–17x (discount for PR noise)
🎯 FV Range = ₹165–₹185
CMP = ₹196 pre-fall → ~₹166 post-fall
So… fair value already reached.
Upside? Only if they deliver real projects — not “synergy decks.”
🧾 TL;DR
| 🧪 What Trom Said | 🧠 What Market Heard |
|---|---|
| EV + IoT + Smart Infra | Bro, where’s the revenue? |
| Hermes JV | Who tf is Hermes? |
| Explore smart city tenders | Nice. Get one first. |
| Edu Verdict | Looks like an exit pump gone wrong. |
Until Trom shows actual orders, POs, or execution metrics, it’ll remain yet another SME with a tech dream and a broken chart.
Author: Prashant Marathe
Date: June 4, 2025
Tags: Trom Industries, EV Infra stocks, SME fall, Hermes JV, stock crash, EV charging India, IoT infra projects, fake rally, pump and dump stocks
