🧠 At a Glance
Stratmont Industries Ltd makes and trades low ash metallurgical (LAM) coke and coking coal — ingredients critical for steel manufacturing. While the business sounds hot, the financials suggest more sizzle than steak: high receivables, a 200+ P/E ratio, wafer-thin margins, and debtors aging worse than Indian daily soaps. But wait… the share is up 104% in 1 year. So… what’s cooking in this coke?
1. 📦 WTF Do They Even Do?
- Stratmont manufactures and trades coking coal and LAM coke, used in steel and metallurgical industries.
- Their coke is “customized” for clients (fancy way of saying they know how to crush coal in style).
- Segment remains commodity-linked, low margin, working capital intensive.
- It’s not a manufacturer in the “Tata Steel” league — it’s a small-cap trader riding coal volatility.
2. 💰 Financials Overview – Profits, Margins, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹52.7 Cr | ₹87.3 Cr | ₹92.7 Cr |
| Net Profit | ₹0.73 Cr | ₹0.76 Cr | ₹1.04 Cr |
| OPM | 2.3% | 2.7% | 3.1% |
| ROE | 2.1% | 2.2% | 6.0% |
| ROCE | 18.3% | 9.3% | 6.6% |
⚠️ Key Issues:
- OPMs are basically at vada pav stall level.
- Profits are inching up, but margins remain razor-thin.
- Working capital cycle has exploded from 23 days to 149 days — hello debtor bloat!
3. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Market Cap | ₹209 Cr |
| P/E | 201x 😳 |
| Book Value | ₹10.4 |
| Price/BV | 7.03x |
| TTM Net Profit | ₹1.04 Cr |
Valuation Math:
plaintextCopyEditFair P/E range (for LAM coke trader): 10–15x
TTM EPS: ₹1.04 Cr ÷ 28.5 Cr shares = ₹0.0365 EPS
Fair Value Range = ₹0.0365 x 10 to 15 = ₹0.36 to ₹0.55
👉 Current Price: ₹73.3
👉 FV Range: ₹0.40 – ₹0.60
Yes. You’re paying ₹73 for something worth ₹0.50. High-conviction penny stock bros — this is your idol.
4. 🍛 What’s Cooking – Triggers & Recent Drama
- ✅ FY25 audited results show growth in revenue and net profit, though tiny.
- 📢 Website updated + director reappointed = typical smallcap PR sprinkles.
- ❗FIIs suddenly showed up with 28% holding in Mar 2024. Who? Why? How? 🤷
There’s clearly some party we weren’t invited to.
5. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot |
|---|
| Borrowings |
| Equity Capital |
| Reserves |
| Total Assets |
| Fixed Assets |
- Borrowings rose 3x in 2 years but equity capital also ballooned — possible preferential allotment / FPI entry.
6. 💸 Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| CFO | ₹-20.7 Cr | ₹-23.4 Cr |
| FCF | Deep in red | |
| CFI | ₹-0.8 Cr | ₹-3.2 Cr |
| CFF | ₹20.8 Cr | ₹25.7 Cr |
🔥 Operations are bleeding cash, but financing keeps the lights on. Classic pump-funded survival loop.
7. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 6.05% |
| ROCE | 6.59% |
| Debtor Days | 182 (!!) |
| Working Capital Days | 149 |
| P/B | 7.03x |
| Dividend | Nil since birth |
👉 Everything screams overhyped microcap with aggressive valuation and questionable fundamentals.
8. 📈 P&L Breakdown – Show Me the Money
- FY25 sales: ₹92.7 Cr
- Operating Profit: ₹2.84 Cr (OPM = 3.1%)
- Net Profit: ₹1.04 Cr (NPM = 1.1%)
- EPS: ₹0.36 on face value ₹10
Not exciting enough to support a ₹200+ Cr valuation. At all.
9. 🧼 Peer Comparison – Who Else in the Game?
| Company | ROCE | P/E | Market Cap |
|---|---|---|---|
| Redington | 17.9% | 20.7x | ₹24,399 Cr |
| MSTC | 25.6% | 19.2x | ₹3,779 Cr |
| Stratmont | 6.6% | 201x | ₹209 Cr |
Even amongst microcap peers, Stratmont’s valuation is absurd. Red flag or manipulation?
10. 👥 Misc – Shareholding, Promoters
| Stakeholders | Mar 2024 |
|---|---|
| Promoter Holding | 67.58% |
| FII | 28.07% (sudden!) |
| DII | 0.03% |
| Public | 4.32% |
🧨 FII stake + low public float = perfect recipe for price rigging? Smells fishy, not coal-y.
🔍 EduInvesting Verdict™
Stratmont Industries Ltd = a ₹209 Cr market cap stock that’s generating barely ₹1 Cr in profits.
The story so far:
- ✅ Revenue growth? Yes.
- ❌ Valuation justification? Nope.
- ❌ Dividends? Zero.
- ❌ Cash flow? Negative.
- ❗Sudden FII stake? Suspicious.
This stock has all the makings of a potential operator playground. Unless they show real business scale or margin expansion, this remains a speculative moonshot, not a coal-based compounder.
🧠 Fair Value Range: ₹0.40 – ₹0.60
📉 Current Price: ₹73.3
🎭 EduInvesting Label: More Smoke Than Coke
✍️ Written by Prashant | 📅 July 4, 2025
Tags: Stratmont Industries, Coal Trading, Microcap Stock, Suspicious FII Entry, Working Capital Stress, EduInvesting
