1. At a Glance – A 1948 Company Running on 2025 Customer Advances
Market Cap: ₹102 Cr
Current Price: ₹395
3-Month Return: 6.53%
P/E: 48.2
Price to Book: 0.67
ROE: 2.96%
ROCE: 1.51%
Ladies and gentlemen, meet a 77-year-old company that once sold torches and dry cells and now builds towers in Prayagraj while also baking biscuits on job work. Yes, this is not a startup confusion. This is legacy diversification.
Q3 FY26 numbers? Sales at ₹6.61 Cr. Net Profit at ₹0.03 Cr. That’s ₹3 lakh. The EPS for the quarter: ₹0.12.
At ₹395 per share and trailing EPS of ₹8.20, the stock trades at a P/E of ~48. Which means the market is pricing it like a growth story. The business, however, currently looks like a construction site waiting for collections.
Is this a deep-value real estate microcap? Or a slow-burn execution story dependent on customer advances and Prayagraj sentiment?
Let’s put on our detective hat.
2. Introduction – From Geep Torches to Victory Tower
Incorporated in 1948, Shervani Industrial Syndicate Ltd started life in the torch and dry cell battery business under the Geep brand. Imagine from lighting up villages… to lighting up balance sheets with customer advances.
Over time, the company pivoted into real estate in Prayagraj. Its maiden project was Sterling Apartments. Now the focus is “Shervani Legacy” and the big-ticket project: Victory Tower – a 2-block, 13-storey residential project with 534 units and 14 shops.
But here’s the twist: It also owns Farco Foods Pvt Ltd, manufacturing biscuits on job work basis for Priya Gold. Because why not mix real estate and biscuits in the same corporate structure?
Revenue breakup FY23:
- Sale of Plot & Flat ~77%
- Job Charges (biscuits) ~18%
- Livestock ~1%
- Other Income ~4%
Livestock? Yes. Real estate, biscuits, and livestock. This is not diversification. This is buffet strategy.
Now the big question: Is the real estate business scaling? Or is the company surviving on project-based revenue spikes?
3. Business Model – WTF Do They Even Do?
Let’s simplify this.
1. Real Estate (Main Game)
They develop residential projects in Prayagraj. The flagship project is Victory Tower:
- 534 units
- 2 blocks
- Basement + Ground + 13 floors
- Total saleable area: 6.95 lakh sq ft
- Total project cost: ₹247.42 Cr
- Construction cost: ₹182.81 Cr
Funding structure:
