At a Glance
Signpost India Ltd owns 33.9 million sq. ft of digital ad space, from flashy billboards to solar-charged bus stops. Once hyped as India’s DOOH pioneer, the stock is now 50% down from highs. Revenues are up, but profits are down. Has the market run out of hoardings — or just patience?
1️⃣ Introduction – Startup Story Meets Street Poles
This isn’t your typical tech IPO. Signpost India Ltd promised investors a sexy blend of:
- 🧠 AdTech + DOOH (Digital Out-of-Home)
- 🏙️ Urban infrastructure with monetizable ad rights
- 📊 “Hybrid mobility solutions” — buzzwords powered by billboards
But fast forward to 2025, and this high-visibility company is ironically invisible on investor radars — trading at ₹194, down from a high of ₹403. Because in this market, even digital dreams need profits to stay lit.
2️⃣ WTF Do They Even Do? – Billboards. Buses. Buzzwords.
Signpost’s business model is like if PWD met OYO and hired an IITian for branding:
- 🎯 Owns & operates India’s largest DOOH billboard network
- 🚏 World’s largest digital bus queue shelters
- 📚 Urban “convenience infra” projects — public seating, smart kiosks, libraries, SOS booths, etc.
- 💡 Earns via long-term ad contracts + city/state tenders
- 🔧 Also builds infra for state/central urban mobility missions
They basically rent you attention — on screens, streets, and shelters.
3️⃣ Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 332 | 387 | 453 |
| Net Profit (₹ Cr) | 35 | 44 | 34 |
| EPS (₹) | 8.24 | 6.31 | 4.72 |
| OPM (%) | 21% | 21% | 20% |
| ROE (%) | 25% | 24% | 17% |
| ROCE (%) | 25% | 24% | 15% |
| Dividend Payout | 0% | 0% | 8% |
⚠️ Profit down 23% in FY25 despite 18% revenue growth
📉 Margins compressing post FY24
📊 TTM EPS collapse visible in last 3 quarters
4️⃣ Valuation – Is It Cheap, Meh, or Crack?
| Valuation Metric | Value |
|---|---|
| CMP | ₹194 |
| Market Cap | ₹1,037 Cr |
| P/E | 30.7x |
| Book Value | ₹41.1 |
| P/B | 4.72x |
| Dividend Yield | 0.26% |
Edu Verdict:
- At 30x earnings with falling EPS, this is valuation optimism without visibility
- P/B of 4.7x = premium on “potential,” not asset base
- Sectoral comps (like Vertoz or RK Swamy) are priced similarly, but have more stable EBITDA flow
🎯 FV Range (FY26e):
Assume EPS = ₹6.5, P/E range = 18–24x
👉 Fair Value Range = ₹117 – ₹156
CMP ₹194 = running on billboard branding, not earnings backup
5️⃣ What’s Cooking – News, Triggers, Drama
📉 Stock Down 50% from Highs
- From ₹403 → ₹194 in 6 months
- Street hates slowing EPS, rising debt
📈 New Infra Projects
- Adding smart shelters in Tier-2 cities
- More digital displays = future monetization
📉 Promoter Buying (Tiny)
- 0.12% stake bought by Promoter Pramina Suchanti in June 2025
- Could signal “we’re not giving up” — or just PR fluff
📡 Interest Capitalization Warning
- Screener flag: company might be capitalizing interest
- If true, earnings quality could be lower than reported
6️⃣ Balance Sheet – How Much Debt, How Many Dreams?
| FY | Borrowings (₹ Cr) | Net Worth (₹ Cr) | Debt/Equity |
|---|---|---|---|
| FY23 | 97 | 148 | 0.66x |
| FY24 | 158 | 189 | 0.84x |
| FY25 | 173 | 220 | 0.79x |
- Borrowings grew 78% in 2 years
- Total liabilities: ₹556 Cr
- Fixed assets + CWIP: ₹215 Cr — infra asset-heavy
Not over-leveraged, but clearly debt-fueled growth model
7️⃣ Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | FCF Est. |
|---|---|---|
| FY23 | ₹23 | ₹15 |
| FY24 | ₹64 | ₹40 |
| FY25 | ₹31 | ₹5–10 (low due to capex) |
- FY25 cash flow dropped despite higher revenue
- Capex-heavy infra ops = low free cash
- Still not alarming — but not “compounding machine” either
8️⃣ Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 16.5% |
| ROCE | 15.2% |
| Debtor Days | 144 |
| Cash Conversion Cycle | 144 days |
| Interest Coverage | ~4x |
Red flag: Very high working capital cycle (144 days = long receivable churn)
Green flag: ROE > 15% in a semi-capex biz = not bad
9️⃣ P&L Breakdown – Show Me the Money
| Q4 FY25 | Value (₹ Cr) |
|---|---|
| Sales | ₹110.84 |
| Operating Profit | ₹12.39 |
| OPM % | 11.18% |
| Net Profit | ₹0.92 |
| EPS | ₹0.17 |
- Quarterly net profit has plummeted from ₹17.87 Cr (Q3 FY24) → ₹0.92 Cr
- That’s a 95% crash in PAT in 5 quarters
- OPM dropped from 29.3% → 11.1%
Translation: Topline okay, bottomline crushed
🔟 Miscellaneous – Shareholding & Float
| Shareholder Type | Mar 2025 |
|---|---|
| Promoter | 74.25% |
| FIIs | 0.28% |
| DIIs | 0.78% |
| Public | 24.69% |
| Shareholders | 15,755 |
- FIIs/DIIs missing in action
- Public shareholding stable — but no real institutional support yet
- Promoter buying = micro nibble, not conviction move
🧠 EduInvesting Verdict™
Signpost India looked like a futuristic DOOH play, but 2025 has exposed the old-school pain of running an asset-heavy infra biz:
📉 PAT collapsing
💰 Debt increasing
📺 Revenues flatlining
🎯 Market confused between “AdTech” and “infra tendering company”
Final Roast Rating:
“Signpost is like a beautiful digital billboard — high visibility, low earnings clarity. Great for public messaging, not private investing.”
📌 This isn’t a buy/sell/hold. It’s a flashing red-orange-green signal, just like their street kiosks.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Signpost India, DOOH Stocks, Infra Advertising, Falling EPS, EduInvesting, Smallcap Advertising Stocks
