1. At a Glance
Once a barely-breathing microcap, Rajasthan Gases is now roaring back with profits after nearly a decade in financial coma. Its FY25 EPS is finally positive, ROCE jumped to 24.8%, and the open offer drama has lit up investor screens. But is this a genuine turnaround or just a gas pump fueled by speculative heat?
2. Introduction with Hook
If Rajasthan Gases were a Bollywood character, it’d be that sidekick who silently watches the film until the last scene—then lands the knockout punch.
- Net profit in FY25: ₹7 Cr (after years of red ink)
- ROCE: 24.8% (from -8.1% in FY23)
- EPS: ₹0.91 (FY25), after 10+ years of negative or sub-₹1 earnings
Also: An open offer emerged out of nowhere in early 2024. Coincidence? We don’t believe in those here.
3. Business Model (WTF Do They Even Do?)
Formed in 1993, Rajasthan Gases was historically engaged in the filling, transport, and distribution of industrial gases. But somewhere along the way, they:
- Lost operational focus
- Went dormant
- Then emerged like a phoenix with dreams of being a warehouse and real estate developer
Now it says it’s in “Trading and Developers” with plans to set up a 10,000 sq. ft. warehouse. From gases to godowns—because why not?
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹0 Cr | ₹0 Cr | ₹8.2 Cr |
| Net Profit | ₹-1 Cr | ₹-0.5 Cr | ₹7 Cr |
| EPS | ₹-1.92 | ₹-0.07 | ₹0.91 |
| ROE | -8% | -0.5% | 21.7% |
| ROCE | -8.1% | -0.58% | 24.8% |
Yes, these are real numbers. No, it’s not a prank. FY25 flipped every key metric from negative to surprisingly strong.
5. Valuation
Let’s add fuel to this valuation fire.
Method 1: PE Valuation
- EPS FY25 = ₹0.91
- Smallcap microcap turnarounds often get 40–50x PE
- FV = ₹36.4 – ₹45.5
Method 2: Book Value Based
- Book Value = ₹4.67
- CMP = ₹42.4 → P/BV = 9x
- That’s… rich.
Current Market Cap = ₹326 Cr
Which means you’re paying ~₹40 Cr per crore of annual revenue. Make of that what you will.
6. What’s Cooking – News, Triggers, Drama
- Open Offer Frenzy (Jan–May 2024): Ravi Omprakash Agrawal offers to acquire 26% stake.
- Warrant Conversion (Jan 2024): 7.15 crore shares allotted = capital jump.
- Sudden Profit in FY25: Sales = ₹8.2 Cr, Profit = ₹7 Cr. OPM = 97.7%?!
Yup, that’s either a genius tax structuring move, or the ghost of Dhirubhai Ambani is consulting.
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹1.61 Cr | ₹23.06 Cr | ₹23.06 Cr |
| Reserves | ₹6.3 Cr | ₹5.8 Cr | ₹12.8 Cr |
| Borrowings | ₹4.81 Cr | ₹0 Cr | ₹0 Cr |
| Investments | ₹12 Cr | ₹28 Cr | ₹30.5 Cr |
| Total Assets | ₹12.8 Cr | ₹28.9 Cr | ₹37 Cr |
Key Takeaway:
- Zero debt
- Cash & investments dominate assets
- This is more of a holding company / shell than a traditional industrial player
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹-1.03 Cr | ₹-7.04 Cr | ₹8.36 Cr | ₹0.29 Cr |
| FY24 | ₹-1 Cr | ₹-16 Cr | ₹16.6 Cr | ₹-0.37 Cr |
| FY25 | ₹2.28 Cr | ₹-2.46 Cr | ₹0 Cr | ₹-0.18 Cr |
Analysis:
- Free cash flow negative
- Capex? Not really—mostly investment moves
- Financing: major capital raise via warrant conversion (Jan 2024)
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | -8.1% | -0.58% | 24.8% |
| ROE | -8% | -0.5% | 21.7% |
| PE | NA | NA | 46.4 |
| P/B | 9.0x | 9.07x | 9.07x |
| OPM | NA | NA | 97.69% |
Verdict:
Return metrics just woke up from the dead. But the P/E and P/B suggest a speculative frenzy.
10. P&L Breakdown – Show Me the Money
| FY | Sales | Net Profit | EPS |
|---|---|---|---|
| FY22 | ₹0 Cr | ₹-0.43 Cr | ₹-0.80 |
| FY23 | ₹0 Cr | ₹-1.03 Cr | ₹-1.92 |
| FY24 | ₹0 Cr | ₹-0.50 Cr | ₹-0.07 |
| FY25 | ₹8.2 Cr | ₹7 Cr | ₹0.91 |
Biggest P&L mystery: 97.7% OPM in FY25. Unless they started selling air-conditioned moonlight, this is not your usual gas distributor story.
11. Peer Comparison
| Company | CMP | PE | ROCE | ROE | Sales | Market Cap |
|---|---|---|---|---|---|---|
| Reliance | ₹1,484 | 29 | 9.4% | 8.5% | ₹9.6L Cr | ₹20.08L Cr |
| IOC | ₹150 | 17 | 7.3% | 6.6% | ₹7.6L Cr | ₹2.12L Cr |
| HPCL | ₹430 | 13 | 10.5% | 13.7% | ₹4.3L Cr | ₹91,506 Cr |
| Rajasthan Gases | ₹42 | 46 | 24.8% | 21.7% | ₹8.2 Cr | ₹326 Cr |
Let’s be real: this company is not in the same league, or sport. Its valuation is a retail-driven fantasy, for now.
12. Miscellaneous – Shareholding, Promoters
- Promoters: Literally no one
- Public holding: 100% since forever
- FII/DII holding: 0%
- Shareholders: 8,157 (up from 6,800 in 2022)
Important Events:
- Open offer attempt by Ravi Agrawal in Jan 2024 (26% stake)
- No promoter = higher risk
- All shareholder moves are public-led
13. EduInvesting Verdict™
Rajasthan Gases is the weirdest phoenix in BSE history.
Pros:
- Debt-free
- Massive turnaround in FY25
- ROCE/ROE now in “respectable” territory
- Open offer = potential backdoor play
Cons:
- Sudden profitability with no past operations? Red flag
- Sky-high valuation for a company with ₹8 Cr revenue
- OPM of 97% is too good to be true
Final Thought:
This isn’t a fundamentals story—this is a speculation special. Retail frenzy + corporate restructuring + “something’s cooking” vibes = perfect cocktail for thrill-seekers. Enter only if you like fireworks and fire extinguishers in equal measure.
Metadata
– Written by EduInvesting Research | 14 July 2025
– Tags: RajasthanGases, MicrocapTurnaround, OpenOffer, SuspiciousAccounting, WarehouseDreams, BSESpeculation
