1. At a Glance
Once a quiet real estate firm lost in Mumbai’s crowd, Avishkar Infra just pulled a Bollywood plot twist: zero revenues for 2 years, suddenly ₹3.8 Cr PAT, 150% ROE, 42% ROCE, and a 120% stock rally. Is this a legitimate revival or Excel magic?
2. Introduction with Hook
Imagine a real estate company that looked like it went into hibernation, only to re-emerge like a phoenix with a ₹269 Cr market cap and… wait for it… ₹2 Cr sales. It’s like finding gold in a manhole cover.
- TTM Net Profit: ₹4.36 Cr
- ROE: 150.2% (yep, not a typo)
- Promoter Holding: Down from 74% to 34%
- Book Value: ₹6.44 vs CMP ₹120
- Debtor Days: 376 — basically an unpaid real estate EMI from 2023
Something’s cooking. Or someone’s booking.
3. Business Model (WTF Do They Even Do?)
Avishkar Infra, formerly Joy Realty, operates in Mumbai’s congested and competitive real estate scene. Their core segments:
- Residential Projects: Mid-sized apartment buildings
- Commercial Projects: Retail and office spaces
- JV Projects: Recent investments into Jigna Dev Corp & Surbhi Avishkar Buildcon
They do not build massive skyscrapers like Lodha or Oberoi. This is micro-developer territory — suburban plots, strategic tie-ups, and value flipping.
But here’s the twist — FY22 to FY24 = ₹0 sales. Not ₹0.1 Cr. Just zero. Yet FY25 suddenly clocks ₹2.4 Cr in sales and ₹4.36 Cr PAT.
4. Financials Overview
Profit & Loss (Cr):
| Year | Revenue | Expenses | OPM | Net Profit | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | 0.00 | 0.15 | – | -0.67 | -2.79 |
| FY23 | 0.00 | 0.16 | – | -1.26 | -5.24 |
| FY24 | 0.00 | 0.20 | – | -1.02 | -4.24 |
| FY25 | 2.40 | 0.53 | 77.9% | 4.36 | 1.95 |
Observations:
- Sales suddenly revived in FY25 after 3 years of ghost town accounting.
- ₹2.2 Cr “Other Income” is more than actual revenue.
- Gross margins above 70% suggest asset flipping or a one-off project.
5. Valuation
CMP: ₹120
Book Value: ₹6.44
PE (TTM): 79.6
Market Cap: ₹269 Cr
Now the spicy part:
| Metric | Comment |
|---|---|
| PE Ratio | Near 80x — Netflix-level valuation for a company that just woke up from hibernation. |
| Price/Book | ~18.6x — screams “irrational exuberance.” |
| FV Range | Fair value between ₹15 to ₹35 based on normalized cash flows and sustainable EPS of ₹0.5–1. |
Translation: The market is betting on future projects. The only problem? Those projects aren’t built yet.
6. What’s Cooking – News, Triggers, Drama
- Promoter Resignation (Jan 2024): MD Bhavin Soni resigned.
- Name Changed: Joy Realty is now Avishkar Infra.
- Preferential Allotments: 2 Cr equity shares issued.
- Investments in JVs: 50% stake in 2 Mumbai-based JVs – not much disclosed.
Add to that a 150%+ stock rally in 1 year and FOMO starts smelling like “pump and potential dump.”
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹22.4 Cr |
| Reserves | ₹-7.97 Cr |
| Borrowings | ₹2.12 Cr |
| Fixed Assets | ₹0.02 Cr |
| Investments | ₹0.14 Cr |
| Total Assets | ₹24.91 Cr |
Key Takeaways:
- Networth is negative without revaluation magic.
- Borrowings low — good sign.
- Reserves still in red.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY24 | ₹2.14 Cr | ₹0.00 Cr | ₹-2.08 Cr | ₹0.06 Cr |
| FY25 | ₹-15 Cr | ₹1.06 Cr | ₹14.05 Cr | ₹0.10 Cr |
Interpretation:
- FY25 cash flow includes major inflow from financing — likely equity infusion.
- Core ops are still not consistently generating cash.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 42.07% |
| ROE | 150.22% |
| Debtor Days | 376 |
| Working Capital Days | 2,348 |
| OPM | 77.92% |
Verdict:
ROCE and ROE are fire — but likely from non-repeatable income. 376 debtor days? Your client owes you rent from Diwali 2023.
10. P&L Breakdown – Show Me the Money
| Item | FY25 |
|---|---|
| Sales | ₹2.4 Cr |
| Expenses | ₹0.53 Cr |
| Other Income | ₹2.2 Cr |
| Net Profit | ₹4.36 Cr |
| EPS | ₹1.95 |
Key Point:
It’s not real estate development; it’s an “Other Income” company.
11. Peer Comparison
| Company | PE | ROE | Revenue (Cr) | Mcap (Cr) |
|---|---|---|---|---|
| Avishkar Infra | 79.6 | 150% | ₹2.4 | ₹269 |
| Oberoi Realty | 30.8 | 14.6% | ₹5,286 | ₹66,739 |
| Lodha Dev | 50.5 | 14.7% | ₹13,779 | ₹139,736 |
| Godrej Properties | 54.6 | 8.9% | ₹4,922 | ₹66,455 |
Clearly, valuation is not driven by fundamentals — it’s driven by narratives. And Avishkar’s got just enough drama to tempt the brave.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Mar 2023 | Mar 2025 |
|---|---|---|
| Promoters | 73.71% | 34.69% |
| Public | 26.25% | 65.30% |
Observation:
Promoters dumped nearly 40% of their holding. Combine that with a name change, JV activity, and new MD — and you’ve got a storyline that screams: “RESTRUCTURE MODE.”
13. EduInvesting Verdict™
Avishkar Infra is the stock market equivalent of that guy who disappeared for years and showed up in a Lamborghini claiming he “invested in crypto.”
Yes, ROE and ROCE look unreal. But the revenue base is weak, other income props up profits, and the equity dilution + promoter exit don’t inspire confidence.
Smart investors should:
- Watch for future project execution.
- Be alert for recurring revenue, not one-time earnings.
- Stay cautious unless disclosures improve drastically.
Written by: EduInvesting Analyst
Date: 13 July 2025
Tags: Real Estate, Microcap, Suspicious Rally, Promoter Exit, Mumbai Plots
