At a Glance
Alan Scott Industries just coughed up its Q1 FY26 results, reporting ₹0.40 crore sales and ₹0.06 crore profit. Yes, you read that right – the revenue of a mid-size sweet shop but with a P/E of 84.8! The stock trades at ₹162, a heroic 12x its book value. Despite a history of losses, the company has suddenly turned profitable. Add acquisitions in AI/tech, and you’ve got a plot twist wilder than a Bollywood thriller.
Introduction
Once known only to hospitals and a few homes for its “5 Petals” air purifiers and oxygen concentrators, Alan Scott is now trying to reinvent itself. Its products promise 99.9% virus filtration, but the financials still struggle to filter out years of red ink. Promoters have upped their stake (now 66.6%), giving retail investors some confidence.
However, the market cap is ₹88 crore, and the company’s past OPMs look like a rollercoaster stuck in reverse. Is this turnaround real or just a mirage created by “other income”?
Business Model (WTF Do They Even Do?)
Alan Scott Industries manufactures health & hygiene products, including:
- 5 Petals Air Purifier+ – claims 8-tech virus annihilation.
- 5 Petals O2 Concentrator – provides 90–95% purity oxygen.
Clients include L&T, Thought Bridge HR, Sunicon. Recently, the company acquired stakes in two AI-tech firms, signaling a diversification play – from clean air to clean code?
Financials Overview
Q1 FY26 Performance:
- Revenue: ₹0.40 Cr (up 100% YoY, but still tiny)
- Net Profit: ₹0.06 Cr (profitability achieved after 11 quarters)
- EPS: ₹0.11
Annual Trend:
- FY25 Revenue ₹0.00 Cr, Profit ₹1.04 Cr (mostly other income).
- Sales CAGR 3 years: 122% (from nothing to something).
- PAT CAGR: 195% (because base was negative).
Valuation
The numbers make analysts scratch their heads harder than solving a Rubik’s cube blindfolded.
- P/E Method:
EPS FY25 ₹1.92 × Fair P/E 25 → ₹48 - EV/EBITDA:
EBITDA negative for years → Unusable. - DCF:
Future cash flows? More like future hopes. Estimated value ≈ ₹60
Fair Value Range: ₹45–₹65 (Current ₹162 is pure hype).
What’s Cooking – News, Triggers, Drama
- Acquisitions: Two tech subsidiaries in AI and IT – diversification or distraction?
- Rights Issue Proceeds: ₹7.26 Cr utilized as promised – no deviation.
- Promoter Buying: Stake increased to 66.6%.
- Product Innovation: Claims of superior tech in air purifiers, but sales still microscopic.
Balance Sheet
| Assets | ₹ Cr |
|---|---|
| Total Assets | 9.56 |
| Net Worth | 7.2 |
| Borrowings | 2.1 |
| Liabilities | 0.2 |
Auditor Roast: Balance sheet is tiny but debt manageable. Investments in tech subsidiaries may stretch resources.
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | -₹1.75 Cr | ₹0.96 Cr | ₹0.36 Cr |
| FY24 | -₹1.36 Cr | -₹3.16 Cr | ₹6.28 Cr |
| FY25 | -₹3.01 Cr | ₹0.60 Cr | ₹0.71 Cr |
Comment: Cash burn continues; financing keeps the lights on.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 9.65% |
| ROCE | 7.74% |
| P/E | 84.8 |
| PAT Margin | 15% |
| D/E | 0.3 |
Takeaway: ROE positive at last, but P/E is sky-high without matching fundamentals.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹0.37 Cr | -₹1.09 Cr | -₹1.04 Cr |
| FY24 | ₹0.18 Cr | -₹1.11 Cr | -₹0.96 Cr |
| FY25 | ₹0.40 Cr | -₹0.89 Cr | ₹1.04 Cr |
Comment: Profit only because of other income. Core business still shaky.
Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Panorama Studios | 364 | 30 | 33 |
| UFO Moviez | 422 | -0.7 | 31 |
| Alan Scott | 0.40 | 1.04 | 85 |
Comment: Market values Alan Scott like a blockbuster despite being an indie film.
Miscellaneous – Shareholding, Promoters
- Promoters: 66.6% (recent buying spree).
- DIIs: negligible.
- Public: 33.1% (retail holding high).
Promoters are buying – either they know something or just playing cheerleaders.
EduInvesting Verdict™
Alan Scott Industries is a classic microcap hype story: tiny revenues, high valuations, but big promises (AI, tech, clean air). Recent profit came from other income, not core sales. The stock has run 200% in a year – driven more by hope than numbers.
SWOT
- Strengths: Clean tech, promoter confidence, niche products.
- Weaknesses: Minuscule revenue, fragile cash flows.
- Opportunities: AI diversification, hospital demand.
- Threats: Competition, scalability, regulatory norms.
Final Word: Great story, weak numbers. For thrill-seekers only.
Written by EduInvesting Team | 29 July 2025SEO Tags: Alan Scott Industries, Air Purifier Stocks, Q1 FY26 Results
