🔍 At a Glance
Suyog Telematics, once a quiet infra player for telcos, has seen its revenue grow 46% from FY21 to FY25 — from ₹132 Cr to ₹193 Cr. But profits have been all over the telecom pole. EPS peaked at ₹59 in FY24… only to nosedive to ₹36 in FY25. ROCE has halved. Net profit fell 35% YoY. The question now: is Suyog a stable long-term infra play — or just another high-PE microcap that lost signal?
🧬 About the Company
- Founded: 1995
- Business: Installs, operates, and maintains telecom infrastructure — towers, small cells, poles, OFC cables.
- Clients: Major telecom players across 12 telecom circles.
- DoT Licensed: Registered as IP-I (Infrastructure Provider Category-I) — allowed to lease passive infra to telcos.
- Coverage: Claims presence in 26 states & UTs across India.
Not a flashy business — but in a tower-crazy 5G India, it should be booming… right?
👨💼 Key Managerial Personnel (KMP)
| Name | Role |
|---|---|
| Mr. Rakesh Bhise | Chairman & Managing Director |
| Mr. Prasad Bhise | Executive Director |
| Mr. Vikas Bhise | CFO |
Family-run and tightly held — with promoters increasing stake from 47.3% to 49.7% in FY25, even as institutions trimmed exposure slightly.
📊 5-Year Financial Recap (FY21–FY25)
| Financial Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | ROCE % | Dividend Payout % |
|---|---|---|---|---|---|---|
| FY21 | 132 | 24 | 24.03 | 50% | 26% | 0% |
| FY22 | 126 | 41 | 39.48 | 69% | 26% | 3% |
| FY23 | 144 | 46 | 44.18 | 65% | 22% | 1% |
| FY24 | 167 | 63 | 59.38 | 70% | 22% | 2% |
| FY25 | 193 | 41 | 36.43 | 57% | 14% | 0% |
✅ Revenue up 46%
❌ Net profit flat from FY22 to FY25
📉 EPS down 39% YoY in FY25
📉 ROCE collapsed to 14%
💸 Cash Flow, Margins & Capex Firehose
- Operating cash flow in FY25: ₹71 Cr (flat YoY)
- Capex explosion: ₹146 Cr outflow in FY25, nearly 2x of FY24
- Net cash flow still barely ₹21 Cr
- Working capital days ballooned to 202 days — massive lock-in of capital
- Inventory Days at 150, Debtor Days at 119 — someone forgot to collect the rent!
🔍 Valuation vs Peers (as of June 2025)
| Company | CMP ₹ | P/E | ROCE % | Dividend Yield | YoY Profit Growth |
|---|---|---|---|---|---|
| Suyog Telematics | 942 | 26.0 | 13.7% | 0.13% | -36% |
| Indus Towers | 393 | 10.7 | 29.2% | 0.00% | -4% |
| Bondada Engineering | 463 | 45.5 | 40.4% | 0.01% | 155% |
| Vindhya Telelinks | 1713 | 10.0 | 7.6% | 0.88% | 1% |
| Sar Televenture | 252 | 25.4 | 9.3% | 0.00% | 112% |
Suyog’s valuation doesn’t seem cheap, especially when the growth has vanished and profit is sliding.
📉 Shareholding Shift (FY25)
| Quarter | Promoter % | FII % | DII % | Public % |
|---|---|---|---|---|
| Mar 2024 | 47.37% | 4.70% | 0.04% | 47.90% |
| Mar 2025 | 49.69% | 3.05% | 0.67% | 46.61% |
🔼 Promoters are scooping up shares
🔽 FIIs are slightly trimming — not a red flag, but worth watching
👥 Public holding steady
🔮 Forward-Looking Fair Value Estimate (2026–2028)
Assumptions:
- Revenue CAGR: 12–14%
- Net profit CAGR: 10%
- EBITDA margins normalize to 60%
- ROCE stabilizes at 15%
- Valuation multiple: 20–22x PE (vs current 26x)
🎯 Fair Value Estimate Range: ₹620 – ₹710
(Current CMP ₹942 — 30–40% premium to growth potential)
🤖 EduInvesting Take
“Suyog is like that overenthusiastic telecom uncle who installs towers everywhere — but forgets to collect rent from the tenants.”
- The company had a strong FY24, but FY25 was a hard reset.
- EPS collapsed, working capital exploded, and capex wiped out free cash.
- Promoters may see value, but institutional comfort is missing.
- Valuation demands faith in a 5G infrastructure boom — not yet visible in earnings.
🚩 Risks & Red Flags
- 🚧 FY25 net profit crash despite revenue growth
- 💸 High capex needs = potential debt risk
- 🧾 Rising receivables = working capital black hole
- 📉 ROCE halved in 3 years — unsustainable infra RoI?
- 💰 Dividend = 0. Market not rewarded.
📦 Outlook & Sectoral Context
- 5G rollout should benefit tower infra firms — but players like Indus already dominate.
- Suyog’s edge may lie in small cell deployments and fiber leasing, but competition is heating up.
- Execution risk remains high — especially in collections and managing cash cycles.
📋 Final Verdict
✅ Microcap tower play with deep sector exposure
✅ Promoters are backing it (increased holding)
❌ Earnings drop & ROCE fall = red flags
❌ Valuation rich for a low-growth year
Suyog isn’t dead — but in FY25, the network definitely dropped.
Author: Prashant Marathe
Date: 11 June 2025
Tags: Suyog Telematics share price, telecom infrastructure stocks India, tower companies, microcap analysis, FY25 results, 5-year financial recap
