At a Glance
Maagh Advertising is a microcap marketing firm that’s profitable, debt-free, and… somehow trading at 276x earnings despite a sub-₹1 EPS. Promoter stake is just 9.91%, raising eyebrows faster than their digital ad clicks.
🧠 TL;DR — What’s Going On?
- 💸 Current Price: ₹25.4
- 🧠 Market Cap: ₹572 Cr
- 🧾 FY24 Profit: ₹2.49 Cr
- 💥 P/E: 276 (Yes. That’s not a typo.)
- 📉 Promoter Holding: Just 9.91% (Down from 53.6% in 2023!)
- 📉 Q-o-Q Sales Down: -26.22%
- 🧮 FV Range: ₹6–₹9 based on realistic multiple
📈 1. Revenue & Profit — Did the Ad Click?
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM (%) |
|---|---|---|---|
| FY22 | 21.8 | 0.56 | 6.5% |
| FY23 | 20.0 | 0.55 | 7.3% |
| FY24 | 48.6 | 2.49 | 8.6% |
✅ Sales more than doubled in FY24
❌ But TTM already shows a slowdown (₹42.9 Cr vs ₹48.6 Cr)
💡 2. Business Model — One-Stop Ad Shop
They do:
- 📻 Radio
- 📺 TV
- 🎥 Cinema
- 📱 Digital
- 📢 Outdoor
But let’s be real — this isn’t Madison Ave.
It’s a Gujarat-based SME trying to be India’s “Omnicom” — with ₹2 Cr PAT.
🧮 3. Valuation — This Is Not Cannes, It’s BSE SME
- 🧠 EPS (FY24): ₹0.11
- 📘 Book Value: ₹1.06
- 💹 P/B: ~24x
- 😭 P/E: 276x
👎 For comparison:
- Vertoz (₹781 Cr market cap): P/E 30
- Signpost India (₹1059 Cr): P/E 31
- Bright Outdoor Media (₹813 Cr): P/E 42
Maagh is:
Overvalued even by SME fairy tale standards.
📉 4. Red Flags — Let’s Talk
- 🔻 Promoter Dump: From 53.63% (Mar 2023) to just 9.91% (Mar 2025)
- 😵 Retail Holds 90%+ — classic “exit liquidity” situation
- 🤫 No Dividends, despite repeated profitability
- 📉 Q4 FY25 guidance unclear + Trading window closed = 👀
📊 5. Balance Sheet — Clean, But…
| Item | FY24 (₹ Cr) |
|---|---|
| Total Assets | 27.24 |
| Equity Capital | 22.50 |
| Reserves | 1.36 |
| Debt | 0.00 |
✔️ Debt-free
❌ Low reserves
🧼 Slightly improved working capital, but low cash generation
🔍 6. Fair Value Estimate
Let’s assume a very generous 30x P/E for a small, profitable ad agency:
- FY24 EPS = ₹0.11 → FV = ₹3.3
- Even if FY25 EPS = ₹0.30 (up 3x), FV = ₹9
✅ EduInvesting Fair Value Range = ₹6 – ₹9
(Current Price = ₹25.4 → Almost 3x Overvalued)
🪧 7. Verdict — Ads Look Good, Valuation Doesn’t
Maagh Advertising is a classic SME pop story:
- 📈 Initial hype
- 👋 Promoter exits
- 🫨 P/E jumps into triple digits
- 🧻 Retail bags hold the fort
This is a “watch from a safe distance” kind of stock. The fundamentals are decent, but the valuation is riding on vibes and volume — not earnings.
🏷️ Tags:
Maagh Advertising, SME IPO, SME Stock Analysis, Advertising Stocks, Overvalued SME, Promoter Exit, Smallcap Bubble, Gujarat Marketing Stock, Screener Analysis
✍️ Written by Prashant | 📅 June 26, 2025
