💻 At a glance
Colab Platforms Ltd (formerly JSG Leasing) is the strangest stock story of the year — a ₹70 Cr revenue surge from barely ₹2 Cr just a year ago (+3006%), net profit of ₹2.86 Cr, and suddenly everyone wants a piece. But underneath the fireworks lies a P/E of 214, a promoter stake of just 33.9%, and a balance sheet lighter than a college project. So… breakout SaaS play or another BSE meme stock?
🧠 About the Company
Founded in 1989 as a leasing company, Colab reinvented itself as a digital platform and software job-work firm. Today it claims to work in:
- IT Products & Hardware
- Software Processing
- Trading of Shares & Securities (yes, really)
- New for FY25: Sports-Tech Expansion
Basically, it’s a company that does everything tech — and nothing in detail. The sudden leap in revenue has raised eyebrows and questions.
📊 Financial Highlights (FY21–FY25)
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 0.08 | 0.26 | 1.50 | 2.21 | 70.03 🚀 |
| Net Profit (₹ Cr) | -0.09 | 0.14 | 0.85 | 1.79 | 2.86 |
| OPM % | -25% | 61.5% | 76.0% | 80.5% | 3.1% ⚠️ |
| EPS (₹) | -0.02 | 0.02 | 0.04 | 0.09 | 0.14 |
| Book Value (₹) | ~0.9 | ~1.0 | ~9.7 | 1.3 | 4.16 |
🚨 Note: Despite revenue ballooning, operating margins collapsed to just 3.1% — meaning most of that growth didn’t translate into sustainable profit.
📉 Valuation Snapshot
| Metric | Value |
|---|---|
| CMP | ₹29.90 |
| TTM EPS | ₹0.14 |
| P/E | 214x 🤯 |
| Book Value | ₹1.20 |
| P/B Ratio | 24.9x |
| Promoter Holding | 33.88% only |
| Dividend Yield | 0.02% |
This is basically priced like a mid-stage SaaS unicorn… without the unicorn.
🚀 What’s With the 3006% Revenue Growth?
Colab claims:
- New clients in sports analytics & tech
- Acquisition-led expansion (details not clearly disclosed)
- Infra investment to support job-work scale-up
But given the base effect (₹2.2 Cr → ₹70 Cr), even one large outsourcing contract can distort growth numbers. And with no detailed client list, the fog of hype remains.
📦 Balance Sheet Overview (FY25)
| Component | Value (₹ Cr) |
|---|---|
| Equity Capital | 20.40 |
| Reserves | 4.16 |
| Borrowings | 0.03 |
| Total Liabilities | 25.92 |
| Fixed Assets | 0.05 |
| Investments | 0.27 |
| Other Assets | 25.60 |
🧾 Most of Colab’s “assets” are probably receivables and cash — it owns no infra, has zero debt, and still runs on a barebones operation.
🧮 Fair Value Estimate (EduInvesting Range)
| Assumption | Value |
|---|---|
| Realistic FY26 EPS | ₹0.30 – ₹0.50 |
| Target P/E Range | 25x – 30x |
| FV Range | ₹7.5 – ₹15 |
🎯 At CMP ₹29.90, it’s priced for perfection. Any slip-up, and you’re holding a hot cloud.
🧨 Red Flags
- 🔻 P/E of 214 – even Nvidia blushes
- 🔻 Promoter holding just 33.88%
- 🔻 Operating margins crashed despite revenue growth
- 🔻 No real infra assets backing operations
- 🔻 EPS growth not matching revenue surge
- 🧾 Still reports “Other Income” as material (₹1.03 Cr out of ₹3.15 Cr PBT)
📈 Stock Journey
- 52-week high: ₹76.2
- Current price: ₹29.90
- Low: ₹5.42
It’s down ~60% from peak and still trades at 200x earnings. This isn’t a discount. It’s delayed euphoria.
🧠 EduInvesting Take
Colab is the kind of company that looks like it’s doing everything right — growing revenue, staying debt-free, exploring tech — but the fundamentals are still shaky:
- Not enough earnings to justify the price
- Margin dilution raises serious concerns
- No clarity on sustainability of the new biz model
Unless it proves the ₹70 Cr was not a fluke, this is just another “T20 innings” of the SME-to-mainboard momentum world.
🔚 TL;DR
- ✅ Revenue growth of 3006% in FY25
- ✅ PAT up 60% to ₹2.86 Cr
- ❌ P/E at 214x is wild
- ❌ Promoter stake low (33.88%)
- ❌ Margins and EPS don’t justify valuation
- 🎯 FV Range: ₹7.5 – ₹15
Verdict:
This isn’t a multibagger. This is a cloud stock. Either it rains profits… or evaporates with retail money.
Author: Prashant Marathe
Date: 12 June 2025
Tags: Colab Platforms, cloud tech stocks, SME rerating, revenue spurt stocks, BSE SME, overvalued tech, sports-tech, FY25 results recap
