At a Glance
Once a forgotten penny stock with no business and massive debt, East India Drums is suddenly doing ₹65 Cr in quarterly sales and ₹4 Cr in profits. With promoter holding now at 94.76% and a 400%+ 3-year price jump, this stock is no longer just rolling — it’s drumming up some serious attention.
1. 🧨 Introduction: From Bankruptcy to Barrels of Hope?
In every bull market, there’s one smallcap that makes you do a double take.
And this time, it’s a company that:
- Used to have negative reserves
- Made zero revenue for 10 years
- And suddenly shows up with ₹271 Cr in FY25 revenue
Welcome to East India Drums & Barrels — because apparently, barrels now print money.
But is this real growth or just another operator special in SME clothing?
2. 🏭 WTF Do They Even Do?
- Business: Manufacture steel and plastic drums, barrels, and fuel tanks
- Product Range: 50L to 200L containers for:
- Oils
- Solvents
- Lubricants
- Chemicals (semi-solid & liquid)
- Clients: B2B — petrochemical, packaging, chemicals sector
This is NOT a sexy business. It’s more steel sweatshop than tech startup.
But it prints cash when input costs fall and volumes spike — like in FY25.
3. 📊 Financials: From Zero to Hero (In One Fiscal)
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (₹ Cr) | ₹0 | ₹0 | ₹271 |
| EBITDA (₹ Cr) | ₹0 | ₹0 | ₹14 |
| Net Profit (₹ Cr) | ₹0 | ₹15 | ₹4 |
| OPM (%) | – | – | 5.2% |
| ROE (%) | – | – | 52.6% |
| ROCE (%) | – | – | 36.3% |
Yes, this is as dramatic a turnaround as you’ll ever see. But also extremely suspiciously fast.
4. 💸 Valuation: Reasonable or Ridiculous?
| Metric | Value |
|---|---|
| Market Cap | ₹117 Cr |
| CMP | ₹79 |
| Book Value | ₹12.8 |
| P/E | 32.4x |
| P/B | 6.15x |
| EV/Sales | ~0.6x (low) |
High P/B? Yes.
High ROE? Also yes.
But this kind of sudden profitability screams “either a miracle or a mirage.”
5. 🔍 What’s Cooking: The Glow-Up of the Decade?
The company literally:
- Went from zombie to Zomato in FY25
- Promoters increased stake to 94.76% in just one year
- Suddenly showed quarterly sales of ₹65 Cr+
Also:
- Announced a new Company Secretary in June 2025
- Has barely any institutional holding left (DIIs at 0.00%)
Which means it’s now fully promoter + operator controlled 🧃
6. 🧾 Balance Sheet: Rising From the Ashes
| FY | Equity Capital (₹ Cr) | Reserves (₹ Cr) | Debt (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|---|
| FY23 | ₹0.77 | -₹6 | ₹1 | ₹1 |
| FY25 | ₹15 | ₹4 | ₹50 | ₹133 |
So in just 2 years:
- Capital increased
- Reserves flipped from negative to positive
- Assets multiplied
But how? 👀
7. 🧮 Cash Flow – Okay, This Checks Out (Mostly)
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY24 | -₹1 | ₹15 | -₹14 | ~₹0 |
| FY25 | ₹25 | -₹7 | ₹2 | ₹20 |
📌 The company did raise money, put it to use, and turned profitable — so some of the growth seems backed by real flows.
8. 📈 Ratios – Warning: Sharply Pointed
- ROE: 52.6% 🔥
- ROCE: 36.3% 💥
- Debt/Equity: ~3.3x 😬
- Interest Coverage: Low ⚠️
- OPM: ~5% (thin but functional)
So yes, returns are high — but on a very tiny base, with high leverage and very tight interest buffer.
9. 🧾 P&L Breakdown – Literally Went From Zero to Something
| FY | Sales (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY23 | ₹0 | ₹15* | ₹9.82 |
| FY24 | ₹0 | ₹0 | – |
| FY25 | ₹271 | ₹4 | ₹2.44 |
*FY23 profit likely included some one-time accounting adjustment.
10. 🤼 Peer Comparison
| Company | CMP (₹) | P/E | ROE (%) | OPM (%) | Mkt Cap (Cr) |
|---|---|---|---|---|---|
| MSTC | ₹536 | 19.2 | 24.2 | 57.0 | ₹3,779 |
| Redington | ₹312 | 20.7 | 14.5 | 2.0 | ₹24,399 |
| Ravindra Energy | ₹132 | 88.1 | 10.8 | 17.0 | ₹2,325 |
| East India Drums | ₹79 | 32.4 | 52.6 | 5.2 | ₹117 |
On the surface, it looks insanely efficient. But remember — those ratios are on fresh capital and no history.
11. 🧑🤝🧑 Shareholding – Promoter Takeover
| Category | Mar ’23 | Mar ’25 |
|---|---|---|
| Promoter | 13.5% | 94.76% |
| Public | 85.6% | 5.24% |
| DII | 0.9% | 0.00% |
💡 This is now completely in promoter hands.
So if you’re wondering why it hits upper circuit so easily — now you know.
12. 🪙 Misc: Drums of Doubt?
- Company has no dividend policy yet
- Still trades on low volume exchanges
- No analyst coverage or detailed investor presentation
- No clarity on who the buyers of these barrels are
So… if the revenue is real, where’s the growth plan?
13. 🧠 EduInvesting Verdict™
This is one of those smallcap fairy tales that suddenly went from:
🧟 “Is this listed?”
to
🛢️ “Wait, it did ₹271 Cr in revenue???”
The revival seems real for now, but:
- Margins are thin
- Debt is high
- Promoter control is total
- And past fraud-looking financials are still in the history books
If you’re buying this at ₹79, you’re betting that it becomes a ₹500 Cr container company — and not just a one-year wonder.
💰 Fair Value Range: ₹35 – ₹50/share
Why?
- At 1.5–2x Sales (EV/S), assuming ₹270–₹300 Cr revenue
- Adjusted for low float, modest margins, and execution risk
Beyond ₹50? You’re paying hope premium + operator premium.
✍️ Written by Prashant | 📅 July 3, 2025
Tags: East India Drums, Precision Containeurs, container stocks, smallcap multibagger, low float stocks, EduInvesting
