by Prashant Marathe | EduInvesting.in | 23 May 2025
⚡ At a Glance:
Sahasra Electronics posted its FY25 earnings, showing promising growth backed by major expansion plans. But beneath the topline lies a maze of high-value assets, aggressive capex, and working capital pressures.
| Metric | FY25 (Consolidated) |
|---|---|
| 📊 Revenue | ₹915.26 Cr |
| 💰 Net Profit | ₹15.48 Cr |
| 📉 EPS | ₹0.70 |
| 📍 CMP | ₹352 |
🏢 About the Company
Sahasra Electronics is a key player in India’s electronics ecosystem, engaged in:
- PCB manufacturing
- Semiconductor assembly & packaging
- Electronic Manufacturing Services (EMS)
They’re positioning themselves as part of India’s “Make-in-India” semiconductor dream — but scaling fast in this space isn’t cheap, or easy.
🙇♂️ KMP & Auditor Info
- Auditor: PKMB & Co.
- Audit Opinion: Unmodified ✅
- Peer review valid till May 2027
- Disclosures clean, but questions remain around large “Other Financial Assets”
📊 FY25 Financials (Consolidated)
| Metric | Amount |
|---|---|
| Revenue | ₹915.26 Cr |
| Other Income | ₹47.30 Cr |
| Total Income | ₹962.56 Cr |
| Net Profit | ₹15.48 Cr |
| EPS | ₹0.70 |
| PAT Margin | 1.69% |
Performance was solid for an electronics midcap, but profitability remains thin considering the capital deployed.
🧮 Forward-Looking Fair Value (FV Estimate)
Let’s assume Sahasra scales up efficiently and books ₹40 Cr PAT in FY26.
Projected EPS = ₹1.80
Average industry P/E = 40x (EMS + PCB blend)
🧮 FV = ₹1.80 × 40 = ₹72
📍 CMP = ₹352
➡️ CMP implies 5-year forward pricing baked in today.
Without clear EPS acceleration, downside risks remain.
🕵️ Auditor Mode: Balance Sheet Breakdown
🧊 1. Cash Flow From Operations: ₹(59.3) Cr
Despite profitability, cash flow is negative due to:
- Higher inventories
- Delayed receivables
- Taxes paid despite net loss in previous quarters
🏗️ 2. Capex = ₹730 Cr 😳
Sahasra spent nearly ₹730 Cr in FY25 on infrastructure buildup.
This shows ambition — but also pressure to deliver.
🧾 3. ₹747 Cr in “Other Current Financial Assets”
This mysterious line item remains unexplained.
It could represent:
- Advances to vendors
- Project pipeline allocations
- Internal cross-funding
But without disclosure, it raises transparency concerns.
📦 4. Inventory = ₹379 Cr
Significant for a ₹900 Cr revenue company.
This reflects either robust stocking or under-utilisation.
💳 5. Trade Receivables = ₹271 Cr
Nearly 30% of revenue still unpaid.
Working capital needs tighter control.
🧠 EduInvesting Take
Sahasra is scaling like a unicorn, but earning like a bootstrap startup.
On one hand:
- ✅ Strong industry potential
- ✅ Clean audit opinion
- ✅ Government tailwinds (PLI, Atmanirbhar Bharat)
On the other:
- ❌ High receivables
- ❌ Negative cash flows
- ❌ ₹747 Cr mystery assets
- ❌ Valuation that prices in perfection
Unless FY26 shows clear scale + profitability + balance sheet clarity, current valuation looks fully loaded.
⚠️ Risks & Red Flags
| 🔍 Risk | Detail |
|---|---|
| ₹747 Cr Unexplained Assets | No breakup given |
| ₹730 Cr Capex | Debt-backed, results pending |
| Receivables = ₹271 Cr | Cash collection delay |
| Inventory = ₹379 Cr | Cycle stretch risk |
| Valuation | CMP pricing 5 years ahead |
🧪 Final Verdict: Invest If You Trust the Dream (But Don’t Sleepwalk Into It)
Sahasra could become a flagship electronics brand for India — but right now, it’s walking a tightrope between vision and volatility.
We’ll watch margins, cash flows, and order book growth in FY26 to reassess.
For now?
📉 High on ambition. High on risk.
Tags: Sahasra Electronics FY25 results, semiconductor stocks India, balance sheet red flags, EduInvesting audit mode, ₹747 Cr financial assets, capex-heavy SME, electronics sector India, working capital risk, undervalued vs overhyped stocks
