🪞 At a Glance
Shakti Press Ltd is a microcap printing and packaging company from Central India. Despite being in business since 1993, its sales in FY25 were a mere ₹13 Cr, with barely ₹7 lakh in profit. The company makes corrugated boxes, paper plates, notebooks, and labels—but unfortunately, not enough money. With a 584-day debtor cycle, audit red flags, and falling promoter holding, the stock looks like it’s being kept alive by hope and inertia.
1. 🎯 Introduction with Hook
What do you get when a 30-year-old printing company delivers ₹0.07 Cr profit on ₹13 Cr revenue, has 584 debtor days, and still trades at a P/E of 127?
A stock that should be stored in the fiction section of a bookstore.
Shakti Press Ltd’s story is a classic: small revenues, vanishing margins, qualified audit reports, and a promoter who (literally) had a stroke. Yet, it’s up from its 52-week low. Because… microcap magic?
2. 🏭 Business Model (WTF Do They Even Do?)
Shakti Press Ltd operates in two main segments:
📦 Printing & Packaging Division:
- Corrugated boxes
- Printed labels, danglers, leaflets, brochures
- Tags, stickers, cartons (basically everything you see on a Diwali gift hamper)
📚 Paper Stationery Division:
- Notebooks, copier paper, ruled and unruled sheets
- Exercise books for students
They serve domestic and export markets, but the scale is tiny.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹8.3 Cr | ₹11.3 Cr | ₹13.0 Cr |
| EBITDA | ₹2.24 Cr | ₹2.27 Cr | ₹2.07 Cr |
| Net Profit | ₹0.62 Cr | ₹0.48 Cr | ₹0.07 Cr |
| EPS | ₹1.76 | ₹1.36 | ₹0.20 |
| ROE | 1.8% | 1.3% | 0.2% |
| OPM | 27.1% | 20.1% | 15.9% |
📉 Profit is dying despite revenue growth. Margins are falling, and ROE has entered rounding-error territory.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
- Market Cap: ₹8.89 Cr
- Stock Price: ₹25.2
- Book Value: ₹51.9 → P/B = 0.49 ✅
- P/E = 127 🚨
- 5-Year Profit CAGR: -32% ❌
- Sales CAGR: 3%
🧮 Fair Value Range Calculation (FV):
- Assume normalized EPS = ₹0.5
- FV Range (8x–12x): ₹4 – ₹6
👉 Stock is trading ~5x above optimistic fair value.
5. 🍳 What’s Cooking – News, Triggers, Drama
👨⚖️ Drama Digest:
- Audit qualification in FY25: Material weaknesses flagged
- Managing Director had a stroke in FY25 but resumed work later
- Ongoing tax disputes
- Resignation of Company Secretary, delayed filing
Basically, not the kind of news you want to print on glossy paper.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Net Worth | ₹18.3 Cr |
| Total Borrowings | ₹13.1 Cr |
| Debt / Equity | 0.72 |
| Total Assets | ₹35.3 Cr |
| Fixed Assets | ₹7.9 Cr |
Nothing too wild here, but profits are so weak, even a ₹13 Cr loan is a burden.
7. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | FCF (approx) | Comment |
|---|---|---|---|
| 2023 | -₹0.79 | Negative | Losses + Working capital drain |
| 2024 | -₹0.09 | Negative | Bleeding slows, but still red |
| 2025 | ₹2.43 | Flat | Recovery via receivables |
Still not enough to write home—or a dividend—about.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 3.9% | 🥱 Meh |
| ROE | 0.2% | 😵 Comatose |
| Interest Coverage | ~1.1x | 🚨 Danger zone |
| OPM | 15.9% | Decent |
| Debtor Days | 584 😱 | Why even bill customers? |
| P/E | 127x | LOL |
| Price / Book | 0.49x | Cheap for a reason |
9. 📊 P&L Breakdown – Show Me the Money
- FY25 Sales: ₹13 Cr
- FY25 Operating Profit: ₹2.07 Cr
- Interest + Depreciation: ₹2.01 Cr
- Profit before tax: ₹0.08 Cr
- Net Profit after tax: ₹0.07 Cr
🎯 Final margin = 0.5% → Even vada pav stalls do better.
10. 🧩 Peer Comparison – Who Else Is in the Game?
| Company | Sales (₹ Cr) | ROE % | P/E | Mkt Cap (₹ Cr) |
|---|---|---|---|---|
| Navneet Edu | 1,786 | 13.3 | 15.7 | 3,248 |
| S Chand | 720 | 6.2 | 13.4 | 804 |
| Repro India | 466 | -0.5 | — | 805 |
| Chetana Edu | 102 | 26.0 | 13.4 | 182 |
| Shakti Press | 13 | 0.2 | 127 | 9 |
📉 Shakti is the lowest in scale and profitability, but highest in valuation multiples. Perfect recipe for delisting.
11. 🧪 Miscellaneous – Shareholding, Promoters
| Holder | Jun ’24 | Mar ’25 | Trend |
|---|---|---|---|
| Promoter | 53.7% | 49.5% | 🔻 Falling |
| Public | 43.8% | 48.0% | 🔺 Rising |
| No. of shareholders | 2,656 | 2,927 | Jumping |
🎯 Promoter stake fell 10% in 3 quarters. That’s usually a 🚩 in microcaps.
12. 🧑⚖️ EduInvesting Verdict™
🧻 Shakti Press Ltd is the kind of stock that sounds promising… until you actually check the numbers.
- ✅ Cheap on P/B
- ❌ Wildly expensive on P/E
- ❌ Debtor days are disastrous
- ❌ Profit has basically evaporated
Unless you believe they’ll 10x earnings or win an Amazon packaging contract by divine intervention, this one looks like it’s just printing time, not value.
📉 Fair Value Range: ₹4 – ₹6
(Current price: ₹25.2 – major risk of de-rating)
✍️ Written by Prashant | 📅 July 11, 2025
Tags: Shakti Press Ltd, microcap trap, printing stocks, paper stationery, packaging sector, penny stock warning, BSE SME, undervaluation illusion, debtor days crisis, EduInvesting
