1. At a Glance – “₹16 Cr Market Cap, ₹9 Stock, ₹12.8 Book Value… So Why Is Everyone Still Nervous?”
Yash Management & Satellite Ltd (YMSL) is a ₹16 Cr micro-cap trading at ₹9.44, proudly sitting below book value (0.74x P/B) like a clearance-sale item nobody wants to touch.
The company clocked ₹7.68 Cr in Q3 FY26 sales and surprised everyone with a ₹0.26 Cr quarterly profit, a rare green shoot in a long desert of losses. Quarterly profit jumped 111% YoY, but before you start dancing, remember—ROCE is still -6.49% and ROE is -8.7%.
Sales over the last year are down 61.5%, five-year stock returns are -6% CAGR, and three-year returns are a painful -21% CAGR. This is not a momentum stock; this is a balance-sheet survival story.
Promoters hold 60.4%, no pledging (good), debt is low at ₹3.23 Cr, and current ratio is an absurdly high 5.66, meaning liquidity isn’t the problem—profitability is.
So the question is simple:
👉 Is this a dead trading shell… or a leaner, meaner comeback attempt after shutting manufacturing?
2. Introduction – A Trading Company That Tried Manufacturing, Failed, and Came Back Home
Yash Management & Satellite Ltd was incorporated in 1993, back when liberalisation was new and everyone wanted to “do trading.” And trading it did—agri commodities, metals, textiles, industrial products, imports, exports, everything except clarity.
At some point, management thought:
“Trading is boring. Let’s manufacture.”
Enter Sudarshan Polyfab Pvt Ltd, a packaging subsidiary where YMSL owned 61%. Fast forward to FY24, and reality hit harder than GST compliance—manufacturing shut down completely. Factory sold. Curtains closed. Game over.
Since then, YMSL is back to being what it always was:
📦 A pure trading company with some interest income and occasional asset sales.
FY25 revenue mix confirms this identity crisis:
- 94% from sale of products
- 3% interest income
- 1% consultancy
- 2% STCG (property + securities)
Translation?
👉 Core trading margins are thin, so the company survives by juggling capital.
Now add management reshuffle, recurring losses, shrinking net worth, and volatile quarterly numbers—and you’ve got a perfect auditor-nightmare microcap.
3. Business Model – WTF Do They Even Do?
Let’s explain YMSL’s business to a smart but lazy investor:
- They buy stuff (agri commodities, metals, industrial products)
- They sell stuff
- Margins are razor thin
- Profits depend more on timing, inventory turns, and luck than brand or moat
There is no pricing power, no differentiation, and no long-term contracts visible in the data. This is not Redington. This is not MMTC scale. This is small-ticket, opportunistic trading.
Key observations:
- Inventory days swing wildly (from 810 days in FY22 to 64 days in FY25)
- Debtor days jumped to 70.6 days in FY25
- Cash conversion cycle is still 134
