1. At a Glance
Yamuna Syndicate is India’s most expensive illiquid holding company that 99.9% of retail investors have never heard of. But behind the dry name lies a juicy 45% stake in ISGEC Heavy Engineering — a mid-cap capital goods player. The rest? Just “trading” and “other income.” Is this a hidden gem, or just an old-school business disguised as a ₹41,000 per share cult stock?
2. WTF Do They Even Do?
- Primary Business: Holding Co. of ISGEC (45% stake)
- Secondary Business: Trading of lubricants, batteries, fuel oils, etc. — more like a legacy side hustle
- Actual Value Driver: Dividends + PAT from ISGEC + Revaluation of investment
🧱 TL;DR: It’s not about what Yamuna does. It’s about what ISGEC does — and whether that stake justifies ₹1,200+ Cr market cap.
3. Financials Overview – Decoding the Mirage
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (Sales) | ₹55 Cr | ₹63 Cr | ₹68 Cr | ₹64 Cr | ₹65 Cr |
| Net Profit | ₹116 Cr | ₹54 Cr | ₹91 Cr | ₹124 Cr | ₹115 Cr |
| OPM % | 4% | 3% | 3% | 2% | 2% |
| Other Income | ₹115 Cr | ₹53 Cr | ₹90 Cr | ₹126 Cr | ₹115 Cr |
| ROE | 13% | 6% | 9% | 10% | 9% |
🧠 95% of profits are from “other income” — aka ISGEC dividends and profit share.
4. Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹41,202
- Book Value: ₹41,863 → P/B ≈ 0.98x
- EPS (FY25): ₹3,743 → P/E ≈ 11x
🎯 Fair Value Range (EduCalc™)
Let’s value Yamuna as a HoldCo of ISGEC:
- ISGEC CMP ~₹730, MCap ~₹5,400 Cr
- Yamuna owns 45% → Stake value = ₹2,430 Cr
- Yamuna MCap = ₹1,266 Cr → Holdco Discount = ~48%
✅ EduInvesting FV Range: ₹1,600 Cr – ₹1,850 Cr
→ Per Share FV = ₹52,000 – ₹60,000
💥 CMP is actually undervalued if ISGEC keeps delivering.
5. What’s Cooking – Anything Happening at All?
- 🏢 Property Sale: Sold land for ₹15.11 Cr in FY24
- 🧾 Dividends Rolling: Regular income from ISGEC
- 🐢 No New Capex or Biz Moves: Business model is “sit back, collect dividends”
💡 Translation: It’s like a sleepy trust fund baby living off dad’s success.
6. Balance Sheet – Old Money Vibes
| Item | FY25 |
|---|---|
| Reserves | ₹1,284 Cr |
| Debt | Zero |
| Investments | ₹1,232 Cr (Mostly ISGEC) |
| Fixed Assets | ₹0 Cr |
| Cash & Others | ₹56 Cr |
🏦 Debt-free
📈 Fully investment-led
📉 No manufacturing, no capex
🛋️ Literally, an asset-holding vehicle
7. Cash Flow – Passive Income Mode: ON
| Year | CFO | CFI | CFF | Comments |
|---|---|---|---|---|
| FY25 | -₹8 Cr | ₹20 Cr | -₹12 Cr | High dividends, low ops |
| FY24 | -₹4 Cr | ₹14 Cr | -₹10 Cr | Sale of property helped |
| FY23 | -₹1 Cr | ₹8 Cr | -₹6 Cr | Smooth sailing |
📥 Cash comes from dividends
📤 Goes out via taxes and payouts
🪜 They’re not reinvesting — and that’s the plan.
8. Ratios – Wake Me Up When Something Moves
| Metric | Value |
|---|---|
| ROCE | 9.39% |
| ROE | 9.31% |
| OPM | 2% |
| Dividend Yield | 0.97% |
| Payout Ratio | 13% |
👵 Feels like grandpa’s portfolio: slow, steady, low maintenance.
9. P&L Breakdown – Income Without Effort
- Sales are FLAT for 10 years
- Operating margin is negligible
- 100% PAT = other income
- EPS is high but misleading — driven by non-core biz
📉 If ISGEC tanks, Yamuna’s EPS will collapse.
10. Peer Comparison – Not Even Playing The Same Game
| Company | ROE (%) | P/E | Comments |
|---|---|---|---|
| Yamuna Synd. | 9.3 | 11.0 | Pure HoldCo + Trading biz |
| Redington | 14.4 | 20.7 | Actual operating business |
| MSTC | 24.1 | 19.7 | Govt-run metal auctioneer |
| Ravindra Energy | 10.8 | 89.6 | Solar pivot story, expensive |
| TCC Concept | 9.2 | 46.5 | No idea why this is valued |
🎯 Yamuna is unique — you’re not buying operations, you’re buying a discounted stake in ISGEC.
11. Misc – Promoters, Float, Illiquidity
- 🧬 Promoter Holding: 74.87% stable for years
- 🫥 Public Holding: 25% → just 8,000 shares available to trade
- 🥱 Only ~1,100 shareholders total
- 📉 Stock is illiquid as hell — one order can move it by ₹5,000
🚨 Big risk = You can buy it, but can’t sell it.
12. KMP & Management – Buttoned-Up Boring
- No scandal, no drama
- No analysts cover this
- No investor presentation since Modi 1.0 era
- Director salaries not flashy
- Just good old accounting and clean books
🎓 A family office dream, but not a trader’s playground.
13. EduInvesting Verdict™
Yamuna Syndicate isn’t a stock. It’s a closed-end ISGEC mutual fund that occasionally sells a property for spice. You’re buying:
✅ Debt-free holdco
✅ 48% discount to ISGEC stake
✅ 9% ROE with no execution risk
❌ Zero liquidity
❌ No active business building
❌ No earnings growth levers
💥 If ISGEC does well, Yamuna tags along. If not, this is dead money.
Verdict:
“A ₹41,000 stock with zero operations, one job (hold shares), and surprisingly… it does that job well.”
Buy for legacy. But don’t expect fireworks.
✍️ Written by Prashant | 📅 6 July 2025
Tags: Yamuna Syndicate, ISGEC Heavy Engineering, Holding Companies India, Low PE High EPS Stocks, Illiquid Stocks, EduInvesting, Legacy Stocks
