🧂 At a Glance
AMD Industries Ltd makes crown caps, PET preforms, and bottles for everything from cola to liquor. Sales are solid at ₹276 Cr, but profit? Just ₹1 Cr in FY25. Despite negligible earnings, it trades at a head-scratching 94x P/E — because hope is a strategy, apparently.
1. 🧃 Introduction – “Pee le, but profit mat dekh”
Ever noticed those metal crown caps on your beer bottle?
Or the plastic preforms that eventually become water bottles?
That’s AMD Industries’ playground.
🛢️ It’s a classic B2B packaging play…
🤕 …that’s been packaging everyone else’s products profitably, but not its own company.
2. 🏭 WTF Do They Even Do?
Product categories:
- 🧢 Crown Caps – For glass bottles (soft drinks, beer, etc.)
- 🧪 PET Preforms & Jars – These are the raw forms before bottles are blown
- 🧴 Plastic Bottles (20L jars, pharma bottles, etc.)
Customers:
FMCG, beverage, liquor, water, and pharma industries. If it goes in a bottle, AMD is probably supplying the bottle.
And it’s not a new company — founded in 1958, it’s older than most of our parents.
But the business is stuck in low ROE, low growth, high dreams mode.
3. 📊 Financials – The “Almost There” Company
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹350 Cr | ₹278 Cr | ₹276 Cr |
| EBITDA | ₹50 Cr | ₹22 Cr | ₹25 Cr |
| Net Profit | ₹19 Cr | -₹2 Cr | ₹1 Cr |
| OPM | 14% | 8% | 9% |
| ROCE | 15% → | 4% | 4% |
| ROE | 11% → | -1% | 0.64% 😬 |
Key takeaway:
Sales dipped by ~20% in FY24 and didn’t recover in FY25. Profit almost vanished. This is a classic case of operational deleveraging.
4. 🧮 Valuation – Cheap? Nah. Expensive? YES.
| Metric | Value |
|---|---|
| CMP | ₹49.1 |
| Market Cap | ₹94.1 Cr |
| Book Value | ₹82 |
| P/E (TTM) | 94x 🫠 |
| P/B | 0.61x |
How does this make sense?
Market is valuing it at half book… but with 94x earnings multiple.
That’s a “hope trade” — betting that profit will bounce back. But…
When?
From what margin?
With what customer growth?
Answers: 🤷♂️
5. 🔍 What’s Cooking – Losses, Recovery, Still Flat
FY25 Highlights:
- Revenue: Flat YoY
- EBITDA: ₹25 Cr
- PAT: ₹1 Cr (bounce-back from ₹-2 Cr)
- June 2024 quarter was okay-ish: ₹82 Cr sales, ₹6.5 Cr EBITDA, ₹0.04 Cr net profit 🤡
No major announcements.
No M&A.
No export buzz.
No AI/ML/EV keyword to make it sexy for retail.
This one’s just a grinding slow-mo packaging company.
6. 🧾 Balance Sheet – Decent, but What’s the Plan?
| Metric | FY25 |
|---|---|
| Equity | ₹19 Cr |
| Reserves | ₹138 Cr |
| Debt | ₹83 Cr |
| Net Worth | ₹157 Cr |
| Debt/Equity | ~0.53x |
| Total Assets | ₹322 Cr |
No red flags, but also no capital efficiency.
CWIP? ₹0
Capex? Dead.
Growth projects? Absent.
7. 💵 Cash Flow – Surprisingly Positive
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY25 | ₹40 Cr | -₹12 Cr | -₹31 Cr | -₹3 Cr |
| FY24 | ₹24 Cr | -₹13 Cr | -₹16 Cr | -₹4 Cr |
💡 So, where’s the profit?
Even with ₹40 Cr CFO, their P&L is broken by high interest and depreciation.
8. 🧮 Ratios – Stress Capital
| Ratio | Value |
|---|---|
| ROCE | 4.36% |
| ROE | 0.64% |
| OPM | 9% |
| ROA | 0.3% |
| Inventory Days | 181 |
| CCC | 135 days |
📦 High working capital cycle, low asset turnover.
A value trap? Could be.
9. 📉 P&L Breakdown
- FY25 Sales: ₹276 Cr
- EBITDA: ₹25 Cr
- Depreciation: ₹16 Cr
- Interest: ₹10 Cr
- Net Profit: ₹1 Cr
Basically:
Profit = Revenue – Raw Material – Staff – Power – Transport – Everything – Hope – Luck
= ₹1 Cr
10. 🧑🤝🧑 Peer Comparison
| Company | ROCE | P/E | OPM | MCap |
|---|---|---|---|---|
| EPL Ltd | 17.5% | 21x | 19.8% | ₹7,681 Cr |
| AGI Greenpac | 20.1% | 16x | 24.3% | ₹5,222 Cr |
| TCPL | 20.2% | 23x | 16.9% | ₹3,360 Cr |
| AMD | 4.3% | 94x | 9% | ₹94 Cr |
Let’s just say… it’s not in the same packaging league.
11. 📈 Shareholding – Promoters Consistent
- Promoters: 66.7% (unchanged)
- FII: 0%
- Public: 33.3%
- Shareholder count stable at ~13,300
Clean shareholding, no pledge, no dilution. But also, no FOMO from institutions.
12. 🎯 Fair Value Range
Let’s assume AMD someday earns ₹8 Cr net profit again (peak FY23).
- At 10x → ₹80 Cr → ₹42/share
- At 15x → ₹120 Cr → ₹63/share
EduFair™ Value: ₹42 – ₹63
But FY25 PAT was ₹1 Cr. So… yeah. Keep that hope candle burning. 🔥
13. 🧠 EduInvesting Verdict™
AMD is a weird combo:
✅ Old company
✅ Consistent revenues
✅ Clean balance sheet
✅ Cash flows alive
BUT
❌ Margins collapsing
❌ No growth plans
❌ Depreciation + interest eat up everything
❌ Stock trades at 94x P/E 🤯
This is a classic “low P/B, high P/E, no clarity” smallcap.
“Sabka bottle AMD banata hai… par apne liye ek bhi champagne pop nahi karta.”
👀 Monitor for margin expansion
💡 Wait for PAT > ₹5 Cr again
📉 Avoid at 90+ P/E
✍️ Written by Prashant | 📅 July 3, 2025
Tags: AMD Industries, Crown Cap Manufacturer, PET Bottle Stocks, Packaging Smallcap, Microcap Analysis, Value Trap Stocks, EduInvesting Deep Dive, High PE Low ROE, Smallcap Liquor Suppliers
