🧠 At a Glance
On June 2, 2025, Trom Industries Ltd issued a press release titled:
“Resilience and Growth: Trom Industries’ FY25 Performance & Future Outlook”
Market reaction?
💥 The stock crashed 15% the next day.
Because when you peel off the corporate sugarcoating, the truth is:
- Revenue flat
- Margins destroyed
- Orders pre-booked at old prices
- Raw material duties up
- New model (RESCO) still in talks, no contracts yet
💀 What Really Happened
Instead of giving clean numbers, Trom gave us a TED Talk:
“We’ve emerged stronger, leaner, more focused…”
📉 Translation: “We made less money, margins fell, we had to deliver panels at loss.”
They literally said:
“Orders were booked at old solar panel rates. We honored contracts at agreed prices despite import duties going up.”
Which is like saying:
“We sold gold at silver rates. But with honor 🧘♂️.”
📦 FY25 Financial Disaster in Disguise
Trom won’t show you the P&L. But they told you:
- Profit margins compressed
- Orders became unprofitable
- FY25 didn’t meet expectations
- Yet, they claim “resilience and trust remain intact”
All this wrapped in motivational jargon:
- “Strategic discipline”
- “Operational foundation”
- “Transformation journey”
Bro… just say you got wrecked by input costs.
🧪 What’s This New “RESCO Model”?
They’re entering the Renewable Energy Service Company (RESCO) model — where:
- Trom sets up solar infra for clients
- Clients pay on usage or lease
- Trom earns long-term recurring revenue
But wait — no contract announced.
Just “active discussions.” Zero MW installed yet.
So… just another PowerPoint pipeline.
💸 Why the Market Dumped
Here’s what the press release really said, decoded:
| PR Language | Market Interpretation |
|---|---|
| “FY25 didn’t meet expectations” | We underperformed badly |
| “Old orders at old prices” | We sold stuff at a loss |
| “Entering RESCO model” | No near-term cash flow |
| “Setting up a 4.8 MW solar plant” | More capex, more risk |
| “Strong order book” | But no numbers shared |
| “Thank you for your trust” | Please don’t exit now |
📉 EduInvesting Take
“This is not a press release. It’s a breakup letter in HR-approved language.”
And the market saw through it.
- Real investors asked: Where are the numbers?
- Traders saw: No contract + margin drop = run away
- Result: –15% crash in one day
You can only shout “future growth” so many times before people notice the present is bleeding.
📊 Chart Setup = Pump to Dump?
- Stock rallied for weeks
- No delivery data
- Big fall post vague update
Classic exit PR dump.
🧮 Updated Fair Value?
Assume:
- FY26E EPS = ₹8 (down from earlier optimistic ₹12)
- Assign P/E = 14–16x (penalty for bad execution)
🎯 FV Range = ₹112–₹130
CMP: ₹166 post-crash
→ Still overvalued unless execution improves fast
🧾 TL;DR
| 🔥 What Trom Said | 🧠 What Market Heard |
|---|---|
| We’re resilient | We messed up FY25 |
| Entering RESCO | No near-term revenue |
| Strong pipeline | Still speculative |
| Edu Verdict | Crash justified. Wake-up call needed. |
This isn’t transformation.
This is corporate damage control in Times New Roman.
Author: Prashant Marathe
Date: June 4, 2025
Tags: Trom Industries crash, solar duty impact, RESCO model, margin compression, FY25 disappointment, stock crash news, SME red flags, operator exit
