1. At a Glance
Elpro International Ltd — the company that started by making surge arresters with General Electric USA tech and somehow ended up running malls, schools, and a mini mutual fund on the side. At ₹82.5 per share, this ₹1,398 crore smallcap has been doing a decent balancing act between real estate yoga and electrical engineering pranayama.
In Q2 FY26, Elpro’s quarterly sales stood at ₹53.5 crore with a profit after tax of ₹11.2 crore. But wait—this is the same company that reported a mind-numbing ₹207 crore in sales just a year ago. That’s a 74% crash in revenue YoY. A business that went from “mall expansion” to “mall recession” real quick.
PAT also fell 65% YoY, because why let revenue fall alone, right? The company’s P/E sits at 19.4x, well below the real estate peers like Lodha (35x) or Godrej (40x). Its Book Value is ₹119, so the stock trades at just 0.69x book — almost like the market saying, “Bro, we don’t trust your accounting until you build another mall.”
Debt stands at ₹1,037 crore — a not-so-light reminder that Elpro loves borrowing like an overconfident MBA student loves startup loans. ROCE and ROE at 5.24% and 3.14% show the returns are slower than Pune traffic.
But still, Elpro keeps it spicy — investing crores in Vedanta, Sansera, Ather Energy, Natco Pharma, TD Power, and even Can Fin Homes. Because why stick to your core business when you can be everyone’s shareholder?
2. Introduction
Elpro International is that old-school industrial uncle who reinvented himself as a real estate influencer. Born with General Electric’s blessings (the OG “US-return” collab), Elpro began making surge arresters — devices that stop voltage spikes from frying your gadgets.
Then came the twist. Somewhere between one AGM and another, Elpro realized making surge arresters was too calm. Why not build malls, schools, and luxury real estate instead? And voila — Elpro City Square in Pune happened. From transformers to tenants, Elpro’s transition was smoother than a Bollywood hero’s career change.
But 2025 hasn’t been too kind. Revenue dropped from ₹207 crore to ₹53 crore, and profits followed suit. You’d think real estate and electrical gear are cyclical businesses, but Elpro seems to run on its own calendar — sometimes festive, sometimes fiscal disaster.
Yet, the company remains in the news for its shopping spree: buying shares in listed companies left and right. The most recent? Ather Energy, Vedanta, Sansera Engineering, Natco Pharma — clearly, someone at Elpro is living their best “CFA fantasy league” life.
So the big question: is Elpro an electrical equipment company, a real estate developer, or just India’s most active smallcap investor? Let’s decode the chaos.
3. Business Model – WTF Do They Even Do?
Elpro’s business model is like a buffet—everything from power surge arresters to property development to windmill operations. Officially, the company has four arms:
- Electrical Equipment Division – The OG core, making surge arresters and zinc oxide discs using General Electric tech. They supply big names like Cummins, GE, Hind Rectifiers, and Bombardier. The segment now contributes barely 6% of total revenue.
(Yes, the tail no longer wags the dog.)
- Real Estate Division – The monster child that took over. It accounts for 93% of revenue (FY22). Through “Elpro City Square” and “Elpro Park,” the firm turned part of Pune into its personal Monopoly board. The mall, residential complex, daycare, and school make up its flagship “Elpro Park” project.
- Equity Investments – The newest obsession. Elpro uses free cash to buy stakes in companies like Vedanta, Ather Energy, and TD Power. It even sold its entire stake in PNB MetLife for ₹1,320 crore in FY22 — the deal that made FY22 look like a miracle year with ₹1,057 crore profit.
- Windmill Operations – The “we also do renewable energy” checkbox. It adds green vibes to the annual report but not much to the revenue.
So, in short: Elpro makes surge arresters (small), runs malls (big), and invests like a hedge fund (bigger). It’s the corporate version of multitasking on too much caffeine.
4. Financials Overview
| Metric | Latest Qtr (Sep 25) | YoY Qtr (Sep 24) | Prev Qtr (Jun 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹53.5 Cr | ₹207 Cr | ₹100 Cr | -74.1% | -46.5% |
| EBITDA | ₹22 Cr | ₹28 Cr | ₹71 Cr | -21.4% | -69.0% |
| PAT | ₹11.2 Cr | ₹32 Cr | ₹74 Cr | -65.2% | -84.9% |
| EPS (₹) | 0.66 | 1.90 | 4.39 | -65.2% | -84.9% |
Commentary:
The financials scream “reality check.” After a blockbuster Q1 FY25, where EPS hit ₹4.39 thanks to investment income, Q2 looks like the hangover morning. Revenue down 74%, profit down 65%. The mall probably had fewer footfalls, and the “other income” god didn’t visit this quarter.
At a 19.4x P/E, the stock’s valuation feels mildly expensive for a company whose earnings rely on one-time investment windfalls. But hey, if you love drama with your dividends, Elpro delivers.
5. Valuation Discussion – Fair Value Range
Let’s crunch a few numbers (purely educational):
a) P/E Method
EPS (TTM): ₹4.24
Industry P/E (Realty): ~35x
Elpro’s P/E: 19.4x
If Elpro re-rates to 25–30x on normalized EPS:
Fair Value Range: ₹106 – ₹127
b) EV/EBITDA Method
EV = ₹2,423 Cr; EBITDA = ₹171 Cr (TTM)
EV/EBITDA = 14.1x
If fair multiple = 12–15x,
Implied Equity Value Range = ₹2,052 – ₹2,565 Cr
Per Share Value = ₹84 – ₹105
c) Simplified DCF Approach
Assume free cash flow of ₹100 Cr growing at 8% for 5
