At a Glance
POCL Enterprises is the stock version of a backbencher who suddenly tops the class. It smelts lead, alloys metals, and silently prints a 38% ROE. It’s grown profits at 127% CAGR, but while everyone is watching Deepak Nitrite and Tata Chem, this one’s pulling a stealth rally from ₹80 to ₹227 in 12 months. Is this still a buy — or has the periodic table priced it in?
1. 🔬 WTF Do They Even Do?
This isn’t some sexy green-tech firm. POCL is:
- A metal and chemical processor with focus on lead, zinc, and associated alloys.
- Primary biz:
- Lead smelting and refining
- Zinc metal and lead alloys (used in cables, X-ray shields, ammo… not for Marvel weapons, yet)
- 65% of FY25 revenue = Metals, up from 54% in FY22.
- Also has small exposure to oxides and chemical intermediates.
📦 Translation: boring business, beautiful balance sheet.
2. 🧾 Financials – Who Gave This Lead Stock a Gold Heart?
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 319 | 498 | 874 | 1,120 | 1,450 |
| Net Profit (₹ Cr) | 1 | 3 | 13 | 18 | 31 |
| EPS (₹) | 0.52 | 1.21 | 4.62 | 6.36 | 11.18 |
| ROCE (%) | 7% | 9% | 21% | 24% | 32% |
| ROE (%) | – | – | 25% | 30% | 37.6% 💥 |
🧠 CAGR check:
- Revenue (3Y): 43%
- PAT (3Y): 107%
- Stock price (3Y): 174%
3. 📉 Valuation – Is It Still a Hidden Gem?
| Metric | Value |
|---|---|
| CMP | ₹227 |
| EPS (TTM) | ₹11.18 |
| P/E | 20.3x |
| Book Value | ₹35.1 |
| P/B | 6.5x |
| Market Cap | ₹634 Cr |
🧮 Fair Value Range:
Let’s assume FY26 EPS = ₹14–15 (20–30% growth)
Assign a modest chemical-metal hybrid multiple = 16–22x
👉 FV Range = ₹224 – ₹330
So at ₹227, it’s fairly priced, not cheap — but still room to run if earnings hold pace.
4. ⚙️ What’s Cooking – Triggers & Tandoor
- 🧩 Acquisition Alert: POCL just picked up 40% equity + 85% pref shares in PlanetFirst Energy for ₹19 Cr.
- Why? Diversification? Downstream expansion?
- Not enough detail, but suggests non-core expansion attempt.
- 🧛 Preferential Allotment: Promoters increased stake by 2.47% in June 2025.
- Post dilution, stake = 40.15%
- Shows confidence — and potentially a larger growth plan ahead.
- 🔋 Lead & Zinc Cycle: Commodity tailwinds in battery-grade metals could lift EBITDA margins.
5. 📦 Balance Sheet – Not Heavy Metal Anymore
| FY25 Snapshot | Value |
|---|---|
| Equity Capital | ₹6 Cr |
| Reserves | ₹92 Cr |
| Borrowings | ₹107 Cr |
| Debt/Equity | ~1.1x |
| Net Worth | ₹98 Cr |
| Asset Base | ₹226 Cr |
💡 Working Capital Days: Just 38
📉 Debtor Days: 12 — better than your best friend returning money
🔥 CCC: 34 days
Clean ops. No inventory bloating. No banana republic-style accounting.
6. 💰 Cash Flow – Sab Number Game Hai
| Year | CFO | Capex | FCF | CFF |
|---|---|---|---|---|
| FY24 | ₹3 Cr | -₹3 Cr | ₹0 Cr | ₹0 Cr |
| FY25 | ₹40 Cr | -₹20 Cr | ₹20 Cr | -₹21 Cr |
🚀 Big cash inflow in FY25 due to rising profitability. Earlier years were weak, but now free cash is finally flowing.
7. 📊 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 37.6% 🧨 |
| ROCE | 32.0% |
| OPM | 4.0% (improving from 2–3%) |
| Debt/Equity | ~1.1x |
| Interest Coverage | ~3.5x (healthy) |
| Inventory Days | 25 |
| Dividend | 6% payout, could rise |
⛏️ Operating leverage + pricing power in metals = juicy ratios.
8. 💼 P&L Breakdown – Show Me the Money
- Operating Profit = ₹63 Cr (FY25)
- Net Profit = ₹31 Cr
- Net Margin = 2.1% (low due to commodity biz, but trending higher)
- EBIT CAGR (3Y) = 92%+
POCL ain’t Deepak Nitrite, but it’s not walking on thin oxide sheets anymore.
9. 👥 Shareholding Drama
| Quarter | Promoters | Public |
|---|---|---|
| Jun 2023 | 45.36% | 54.64% |
| Mar 2024 | 41.58% | 58.42% |
| Jun 2025 (Post Allotment) | ~44% (estimated) | ~56% |
🎯 Promoter stake dropped, then crept back up via preferential issue.
🧪 No institutions yet = still early-stage retail story.
🧠 EduInvesting Verdict™
“POCL Enterprises is that unlisted chem-lab stock that just refused to die and kept compounding till nobody could ignore it. If it continues its ROE game and maintains volume + margin momentum, it might just become the Fine Organics of metal processing.”
📌 Not flashy.
📌 Not debt-free.
📌 But definitely not done yet.
🎯 Fair Value Range = ₹224 – ₹330
🚂 Add more if it dips below ₹200
💼 Consider booking partial profits near ₹300 unless earnings explode
✍️ Written by Prashant | 📅 27 June 2025
Tags: POCL Enterprises, lead smelting stocks, metal chemical combo, PlanetFirst acquisition, ROE multibagger, SME chemical stocks, niche BSE stocks, undervalued midcaps, preferential issue newsTools
