🔍 At a Glance
Comrade Appliances Ltd makes air coolers and electric geysers from its Rajasthan facility. While FY25 revenue doubled to ₹57.3 Cr, net profit was only ₹53 lakh—less than many unicorn founders’ weekend tabs. Margins, ROE, and returns remain painfully low, but capex is on, and promoter holding is still solid at 70%. Valuation? Let’s just say it’s more premium than the brand’s actual appliances.
🧩 1. WTF Do They Even Do?
Comrade is a small-cap OEM player in the Indian appliance segment. Their business includes:
- Manufacturing air coolers and electric geysers 🚿❄️
- B2B + retail strategy
- 4 verticals: Production, Moulding, Admin, Logistics
- Based in Rajasthan
So yes, it’s not selling iPhones or robots. But it’s trying to ride the “Make in India” and summer-season spike wave.
📊 2. Financials – Profit, Margins, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹26.9 Cr | ₹28.9 Cr | ₹57.3 Cr 🔥 |
| EBITDA | ₹4.5 Cr | ₹3.5 Cr | ₹5.2 Cr |
| PAT | ₹1.64 Cr | ₹0.53 Cr | ₹0.53 Cr |
| ROE | 6.6% | 0.7% | 2.7% |
| ROCE | 9.9% | 6.9% | 6.8% |
🧠 Analysis:
- Revenue nearly doubled in FY25 but net profit stayed the same. Hmm.
- Margins took a hit due to rising costs and capex depreciation.
- PAT margin = 0.9%. That’s barely tea-money in SME finance.
💸 3. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹78 |
| Market Cap | ₹60.3 Cr |
| P/E | 114x 🤯 |
| P/B | 2.66x |
🧠 Fair Value Estimate (based on FY25 EPS of ₹0.69 and normal P/E band of 25-40 for small OEMs):
- Fair Value Range = ₹17 – ₹27
- Current price is way ahead of fundamentals. Even adjusted for SME froth, this is rich.
🍿 4. What’s Cooking – News, Triggers, Drama?
✅ FY25 audited results show clean audit opinion
✅ Revenue boom in H2FY25: ₹40.5 Cr vs ₹16.8 Cr in H1
⚠️ Net profit stagnant
🚧 Heavy investment: Fixed assets jumped 4x from ₹6 Cr to ₹24 Cr
Capex seems to be driving future growth bets, but investors may be front-running those dreams too aggressively.
🏦 5. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY24 | FY25 |
|---|---|---|
| Equity | ₹7.5 Cr | ₹7.8 Cr |
| Reserves | ₹9.4 Cr | ₹14.9 Cr |
| Total Borrowings | ₹13.9 Cr | ₹26.9 Cr 😬 |
| Total Assets | ₹39.9 Cr | ₹73.4 Cr |
🧠 Analysis:
- Debt doubled, now close to half of total assets
- Fixed assets ramped up: they’re betting big on internal production scale
- Equity base is still modest for the ₹60 Cr valuation it commands
💰 6. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY25 | ₹4.56 Cr | ₹(20.29) Cr | ₹13.71 Cr | ₹(2.02) Cr |
- Operating cash turned positive after a bad FY24
- Heavy investing = negative free cash flow
- Funded largely via debt and fresh equity
📏 7. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| OPM | 9.14% |
| NPM | 0.92% |
| ROE | 2.68% |
| ROCE | 6.85% |
| Interest Coverage | Barely above 1x |
Verdict: It’s a numbers show, but the math doesn’t romance. Margins are low, ROE is anaemic, and interest costs rising.
💸 8. P&L Breakdown – Show Me the Money
| Component | FY25 |
|---|---|
| Sales | ₹57.31 Cr |
| Operating Profit | ₹5.24 Cr |
| Interest | ₹2.16 Cr |
| Depreciation | ₹2.60 Cr |
| Profit Before Tax | ₹0.59 Cr |
| Net Profit | ₹0.53 Cr |
Every rupee of operating profit is being eaten up by depreciation + interest. No wonder PAT is flat despite higher revenue.
🧍 9. Peer Comparison – Who Else Is in the Game?
| Company | P/E | ROE | OPM | Market Cap |
|---|---|---|---|---|
| Comrade | 114x | 2.7% | 9.1% | ₹60 Cr |
| PG Electroplast | 75x | 14.9% | 9.9% | ₹2,156 Cr |
| Dixon | 113x | 32.9% | 3.9% | ₹87,529 Cr |
| Cellecor | 27x | 25.1% | 5.3% | ₹830 Cr |
| Focus Lighting | 48x | 11.3% | 14.3% | ₹727 Cr |
Comrade is priced like it’s the next Dixon. It’s not—at least not yet.
👥 10. Miscellaneous – Shareholding & Promoters
| Holder | Mar ’25 |
|---|---|
| Promoter | 70.05% 🔒 |
| FIIs | 5.30% |
| Public | 24.65% |
| No. of shareholders | 523 (up from 236 in a year) |
🧠 Promoters have not dumped significantly. That’s a small plus.
🧠 EduInvesting Verdict™
🪞 Comrade Appliances: Trading like Dixon, operating like D-Mart’s appliance aisle.
- FY25 growth is real, but margins are missing
- Capex is happening, but debt is rising
- Stock is flying, but profit is crawling
⚠️ At 114x P/E, the stock is priced for flawless execution and heroic scaling. One bad summer, and that thesis melts like its own geyser.
🧮 Fair Value Range: ₹17 – ₹27 (based on 25–40x P/E on current EPS)
Current Price: ₹78 = Overbought AF
📉 ROE low.
📈 Expectations high.
🧠 Think before you plug into this voltage.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Comrade Appliances, SME Stocks, Consumer Durables, Air Cooler IPO, SME Stock Analysis, Overvalued SME, EduInvesting
