🟢 At a Glance:
A little-known stock went from penny trash to multibagger gold — ₹4 to ₹48 in 9 months. That’s a 1,100%+ return, making even Nifty bulls cry. But here’s the kicker: buried deep in the audit report is a line that should terrify retail investors. Let’s decode this meme-turned-nightmare.
🏢 About the Company:
Let’s call it XYZ Multibags Ltd. (because even the name smells like a pump).
- Sector: IT/Infra/Solar/EV — depends on the quarter
- Market Cap: ₹500 crore (on steroids from ₹30 cr last year)
- Promoter holding: 34% — and falling
- Retail holding: 59% — 🙃
Founded in 2013, it pivoted 6 times in 6 years. Started in metal pipes, moved to cloud computing, now claims it’s “India’s leading AI-enabled EV infra stack player.”
Because of course.
📈 The Wild Rally
| Date | Price | Trigger |
|---|---|---|
| Sep 2024 | ₹4.25 | Bulk deal by unknown investor |
| Nov 2024 | ₹12.60 | AI announcement + solar JV |
| Jan 2025 | ₹24.80 | Inclusion in smallcap index |
| May 2025 | ₹48.30 | “Strategic global partnership” with shell firm |
If you put ₹10,000 in at ₹4.25, you’d be sitting on ₹1.13 lakh today.
BUT…
🕵️♂️ The Red Flag Nobody Reads
Buried on Page 49 of the FY25 Annual Report:
“The Company received a qualified opinion regarding revenue recognition from EPC contracts, citing insufficient documentation for 58% of the recorded topline.”
Oh.
Translation: “We made up half of our revenue and hoped you wouldn’t notice.”
Auditors also flagged:
- Outstanding receivables = 92% of FY25 revenue
- Loans to subsidiaries = ₹130 crore (Subsidiaries? What subsidiaries?)
- Discrepancies in GST filing vs reported revenue
But hey, multibagger.
😭 The Twitter Pump Army
Tweets from the last 3 weeks:
🧵 “XYZ Ltd is the next KPIT. Accumulate.”
“Just wait for 100. It’s inevitable.”
“Not a tip. Just conviction 💯”
And of course:
“Operators will shake you out. Diamond hands only.”
Meanwhile, promoter sold 3% stake via open market.
📉 Valuation vs Reality
| Metric | Value | Comment |
|---|---|---|
| P/E | 220x | Of course it is. |
| EV/EBITDA | 140x | Even Nvidia is jealous. |
| D/E Ratio | 2.1 | More debt than growth |
| EPS | ₹0.22 | But CMP ₹48 |
Fundamentally? LOL. Technically? Rocket emoji.
The dissonance is the strategy.
🔥 EduInvesting Take:
This is not a stock. It’s a WhatsApp group fantasy that got real for a bit. The real business is likely “raising the price enough to offload to retail.” If you’re holding this, congrats on your ₹1.2 lakh. Also — read that audit report before it becomes ₹12 again.
🧠 What to Watch:
- Whether SEBI wakes up (unlikely)
- Q1 results: Can they manufacture more revenue?
- Stock split or bonus: Pump tactic 101
- Bulk deals dump in June series
📌 TL;DR
- Stock up +1,100% in under a year
- Company has auditor red flags, GST issues, and high receivables
- Promoters are selling quietly
- Twitter finance bros are still calling for ₹100
- Retail bag-holding probability: 97%
