At a Glance
Lake Shore Realty Ltd (formerly Mahaan Foods) went from selling baby milk powder to becoming a BSE-listed case study in corporate reshuffling. With barely any real revenue in recent years, the company suddenly attracted an open offer at ₹57.51/share—nearly 40% below CMP. Why’s the stock at ₹97 now? Read on.
1. 🧨 Introduction with Hook
Dairy company. Zero sales. ₹0.85 Cr net profit. 4.9% ROCE. 3.6% ROE. And yet — ₹97/share.
Lake Shore Realty Ltd might just be BSE’s most confusing smallcap mystery novel. Formerly Mahaan Foods Ltd, this microcap company posted near-zero revenues for years. But then… boom 💥 — an open offer, share purchase agreement, and sudden interest from entities named AL Maha and Indigo Infracon.
What’s really going on? Let’s break this down.
2. 🥛 WTF Do They Even Do?
Well… what they used to do:
- Manufacture dairy products like:
- Dairy whitener
- Skimmed/whole milk powder
- Ghee under brand “MAHAAN”
- Baby food and nutritional powders
But since FY22?
- Zero operating revenue.
- Company only earning via other income (₹1.55 Cr TTM).
- Claimed “processing” of milk but P&L shows no activity.
So basically:
📦 Stock looks like dairy. Tastes like shell.
3. 💰 Financials – Profits, Margins, ROE, Growth
| Metric | FY25 (TTM) |
|---|---|
| Sales | ₹0 Cr |
| Net Profit | ₹0.85 Cr |
| OPM | Negative |
| ROCE | 4.89% |
| ROE | 3.68% |
| EPS (TTM) | ₹2.43 |
| Dividend | Nil |
- Consistently low-margin, low-ROE, no-dividend company.
- Net profits coming only from “other income”, not operations.
🚨 No core operations = Financials built on sand.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹97.3 |
| P/E (TTM) | 40x |
| Book Value | ₹57.7 |
| P/B Ratio | 1.68x |
| Market Cap | ₹34 Cr |
| FV Range | ₹25–35 (based on ₹1.5 Cr sustainable income @ 20x) |
🧠 Fair Value Calculation:
Assume ₹1.5 Cr normalized profit from interest income or eventual rental income.
→ At 15–20x P/E, FV = ₹22–30
→ Add ₹5–7 as holding premium due to recent corporate deal.
Conclusion? CMP is not just rich — it’s baked in hopes and bhajiyas.
5. 🍲 What’s Cooking – News, Triggers, Drama
Now here’s where it gets spicy:
- ✅ June 2025: Open Offer launched by AL Maha and Indigo Infracon to acquire 26% at ₹57.51/share.
- ✅ Promoters sold their entire 54.84% stake at ₹57.51/share — total deal ~₹11 Cr.
- ✅ Open offer at ₹57.51 values company at ₹34 Cr.
- ✅ CMP surged to ₹97 — +70% above open offer price 😬
⚠️ But why pay ₹97 for a company the promoters exited at ₹57?
That’s the mystery.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
🟢 Strengths:
- Almost debt-free.
- Small, manageable balance sheet.
🔴 Weaknesses:
- Reserves stagnant at ₹16.7 Cr
- Total assets at ₹20.6 Cr
- No significant capex, CWIP or tangible asset buildup
- Minimal fixed assets left (₹0.09 Cr)
Basically: financially clean slate… but also, no activity.
7. 💵 Cash Flow – Sab Number Game Hai
| Metric | FY25 |
|---|---|
| CFO (Cash from Ops) | -₹0.66 Cr |
| CFI (Cash from Investing) | ₹1.36 Cr |
| CFF (Cash from Financing) | ₹0 Cr |
| Net Cash Flow | ₹0.70 Cr |
Mostly passive income + slight investment reshuffling.
Also:
- Negative cash from operations = no real ops
- Net profit ≠ cash profit
This is not a business. It’s a holding pattern.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 4.89% |
| ROE | 3.68% |
| Interest Coverage | NA |
| EPS | ₹2.43 |
| Working Cap Days | 5,579 😱 |
| OPM | Negative |
🧠 Working capital days in thousands? Clearly an accounting ghost town.
9. 📉 P&L Breakdown – Show Me the Money
| Income Source | Amount (FY25) |
|---|---|
| Sales | ₹0.00 Cr |
| Other Income | ₹1.55 Cr |
| Net Profit | ₹0.85 Cr |
Takeaway:
- Zero revenue.
- All profits from other income — possibly interest, rent, or fair value gains.
Zero product sold, 100% P/E hype.
10. 🥷 Peer Comparison – Who Else in the Game?
| Company | Sales (TTM) | ROE | P/E | CMP |
|---|---|---|---|---|
| Nestle India | ₹20,200 Cr | 83% | 75x | ₹2,400 |
| Britannia | ₹17,943 Cr | 53% | 63x | ₹5,758 |
| Bikaji Foods | ₹2,622 Cr | 14.9% | 94x | ₹728 |
| Lake Shore | ₹0 Cr | 3.6% | 40x | ₹97 |
Lake Shore trades at 40x earnings with no operations.
Nestle trades at 75x with 83% ROE.
The logic? ¯\(ツ)/¯
11. 🧩 Miscellaneous – Shareholding, Promoters
| Category | Holding (%) |
|---|---|
| Promoters | 54.84% → Exited |
| New Acquirers | AL Maha, Indigo Infracon |
| Public | 45.2% |
| DIIs | 0.18% |
📌 Promoters sold out. Open offer completed. Control shifted.
But to who, and why?
🤔 Is it real estate ambitions? Reverse merger plans? A potential shell for new biz? Nobody knows.
12. 🚩 EduInvesting Verdict™
🚨 Lake Shore Realty isn’t selling ghee or baby food anymore. It’s selling hope.
- It’s cleaner than most shells (no debt, decent reserves).
- But it’s still a non-operational shell (with other income = lifeline).
- Open offer at ₹57. CMP at ₹97 = someone’s either betting on a big pivot or caught in a pump-n-dump.
📦 Current P/E = 40x other income. No real business. No dividend. No clarity.
📉 FV Range = ₹25–35 (based on fair earnings & promoter exit price).
💸 CMP = ₹97 — either speculation or insider roadmap the rest of us missed.
Approach with goggles on. Not investment advice. This is pure popcorn stock. 🍿
✍️ Written by Prashant | 📅 11 July 2025
Tags: Lake Shore Realty, Mahaan Foods, open offer, AL Maha, shell company, BSE microcap, speculative stocks, reverse merger, dairy stocks, EduInvesting
