🪞At a Glance
Falcon, a microcap MEP and civil works firm, listed on NSE SME in 2023 with dreams of becoming the next Voltas for B2B buildings. But post-IPO hype fizzled. Sales have grown 46% TTM, profit margins are decent, and the stock trades at 0.71x book. So why is it down 68% from highs?
🧠 TL;DR
| 🧾 Metric | FY25 (TTM) | Notes |
|---|---|---|
| Sales | ₹18.3 Cr | 🔼 46% TTM growth |
| Net Profit | ₹1.36 Cr | 🔼 53% TTM profit jump |
| EBITDA Margin | 9.0% | Decent for infra services |
| ROE | 17.0% | Surprisingly strong |
| ROCE | 13.8% | Fair |
| Book Value | ₹41.7 | CMP is at a ~30% discount |
| P/E | 11.6x | Low, but reflects SME illiquidity |
| Market Cap | ₹15.8 Cr | Ultra microcap zone ⚠️ |
1️⃣ What Do They Even Do?
Falcon’s core business:
- 🛠️ MEP (Mechanical, Electrical, Plumbing)
- 🔥 Firefighting & Alarm systems
- 🔌
- Networking + Surveillance
- ☀️ Solar rooftop installations
- 🚧 Civil construction + fabrication
In short, they are theB2B subcontractor for buildings, factories, and infra setups— butnot the main contractor.
2️⃣ Financials: Not Bad, But Not Enough
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | OPM | ROE |
|---|---|---|---|---|
| FY22 | ₹22.9 | ₹1.03 | 9.5% | ~20% |
| FY23 | ₹16.5 | ₹0.90 | 13.9% | ~17% |
| FY24 | ₹11.4 | ₹0.87 | 19.4% | ~13% |
| FY25 (TTM) | ₹18.3 | ₹1.36 | 9.0% | 17% ✅ |
💡 PAT growth = strong📉 Revenue trend = inconsistent🧮 Profit quality = decent, but not high-conviction yet
3️⃣ Working Capital Situation =Yeh Loan Nahi, Attitude Hai
| 🧊 Metric | FY24 |
|---|---|
| Inventory Days | 612 days 😬 |
| Debtor Days | 110 days |
| CCC | 618 days ❄️ |
| Working Capital Days | 401 |
Falcon’s working capital
To Read Full 16 Point ArticleBecome a member