At a Glance
Bhanderi Infracon Ltd is a real estate developer that built ₹5.2 Cr worth of revenue last year and got rewarded with a ₹34 Cr market cap. With 322 debtor days, a 26x P/E ratio, and “other income” doing all the heavy lifting, this is less infra and more invisible structure.
1. 🧲 Hook — Real Estate Company with No Real Estate?
Let’s play a game:
Guess the company that:
- Has ₹5 Cr sales
- Posts negative operating cash flows
- Holds fixed assets worth just ₹22 lakh
- But still trades at ₹131/share with a P/E of 26
🪄 Answer: Bhanderi Infracon Ltd — a stock that makes you wonder if the real development is in valuation multiples, not buildings.
2. 🏗️ WTF Do They Even Do?
“We develop bungalows and flats via partnerships.”
Translation: They don’t own landbanks, they don’t sell consistently, and they rely on project-based margins which fluctuate more than Manish Sisodia’s court appearances.
Their official business includes:
- Buying/selling land
- Redeveloping properties
- Investing in real estate ventures
But dig deeper and their fixed assets = ₹0.22 Cr. So… where is the “infra” in Bhanderi Infracon?
3. 📉 Financials: Profit, Margins, ROE, Growth
Let’s break it down 👇
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (₹ Cr) | 4.84 | 6.44 | 6.28 | 4.15 | 5.24 |
| Net Profit (₹ Cr) | 0.30 | 0.35 | 0.71 | 0.82 | 1.66 |
| OPM (%) | 4.96 | 2.95 | -6.69 | 17.59 | 21.56 |
| ROE (%) | 1.27 | 1.19 | 2.04 | 2.06 | 5.01 |
🏚️ 5-Year Sales CAGR: -3%
💸 5-Year Profit CAGR: +42% (But mostly due to other income, not real estate)
👉 The company is profitable… but that profit isn’t coming from its core ops. It’s coming from “non-operational magic tricks.”
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
Current Price: ₹131
EPS (FY25): ₹4.97
P/E: 26.4x
Market Cap: ₹34 Cr
Book Value: ₹102
Now let’s do FV math 🧮
- Fair P/E for a microcap RE player = 10 (generous)
- Core PAT excluding other income = ~₹0.6 Cr
- Total shares = 2.6 Cr
🔍 FV Range:
- Barebones: ₹0.6 Cr × 10 ÷ 2.6 Cr = ₹2.3
- Full PAT: ₹1.66 Cr × 10 ÷ 2.6 Cr = ₹6.4
🎯 EduFair Value™: ₹2 – ₹6.5
💣 CMP = ₹131 = 20x over fair value.
5. 🧂 What’s Cooking – News, Triggers, Drama?
- 🗓️ FY25 result: ₹1.66 Cr consolidated PAT. No capex, no new launches.
- 👔 Director re-appointed. Again.
- 💤 No dividend. No JV. No visibility of new projects.
So the biggest trigger? A company filing that says “We’re not a large corporate”. No kidding.
6. ⚖️ Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot | Value |
|---|---|
| Equity Capital | ₹2.6 Cr |
| Reserves | ₹23.79 Cr |
| Debt | ₹33.25 Cr |
| Fixed Assets | ₹0.22 Cr |
| Investments | ₹0.77 Cr |
🧨 Debt/Equity ≈ 1.3
🪫 Fixed assets are peanuts. If you’re building homes, how are you doing it with less property value than a mid-range Kia?
7. 💸 Cash Flow – Sab Number Game Hai
| FY25 CFO | -₹6.89 Cr |
| FY25 CFI | -₹0.02 Cr |
| FY25 CFF | ₹6.58 Cr |
🧃Negative cash from operations.
🔁 Funded by fresh borrowings.
Aka: Profits are on paper, while cash flows are on holiday.
8. 📉 Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| Debtor Days | 322 😱 |
| ROCE | 3.87% |
| ROE | 5.01% |
| Inventory Days | 10,430 |
| Payables | 665 days |
The cash conversion cycle is longer than an LIC maturity period. 322 debtor days = you’ll be waiting longer for money than waiting for Vistara refunds.
9. 📄 P&L Breakdown – Show Me the Money
| FY25 Revenue | ₹5.24 Cr |
| Operating Profit | ₹1.13 Cr |
| Other Income | ₹1.07 Cr |
| Net Profit | ₹1.66 Cr |
🚨 64% of FY25 profit is “Other Income”. Meaning… the company makes more money not doing real estate.
Possibly interest earned or revaluation games, but not core construction/sale activity.
10. 🤼 Peer Comparison – Who Else in the Game?
| Name | Sales (Cr) | ROE | P/E | M.Cap (Cr) |
|---|---|---|---|---|
| DLF | 7993 | 11% | 46x | ₹2.09 L Cr |
| Godrej Properties | 4922 | 10% | 51x | ₹71K Cr |
| Oberoi Realty | 5286 | 14.6% | 32x | ₹69K Cr |
| Bhanderi Infra | ₹5.2 | 5% | 26x | ₹34 Cr |
LOL.
11. 🧠 Miscellaneous – Shareholding, Promoters
| Shareholder | Holding |
|---|---|
| Promoters | 56.98% (No change in 3 years) |
| Public | 43.02% |
| No. of Shareholders | 49 |
🧾 Promoter stake steady, no dilution.
But the float is limited, and with microcap trades like this, price spikes are often operator-driven.
12. 🧵 EduInvesting Verdict™
“Valued like a unicorn, structured like a 2008 housing crisis.”
Bhanderi Infracon checks all the boxes of an SME FOMO stock:
- High P/E despite low scale
- “Other Income” led profit
- Negative cash flow
- Astronomical debtor/inventory days
- Almost no physical assets
⚠️ Unless there’s a hidden landbank or RE JV not disclosed publicly, this is one of those “someone knows something, or everyone’s drunk” type of stories.
👻 Retailers, proceed with caution. Or popcorn.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Bhanderi Infracon, SME stock analysis, real estate penny stocks, undervalued or overhyped, EduInvesting, real estate bubble, high P/E trap, other income fraud risk, microcap investing, stock valuation roast
