1. At a Glance
Electrical brain of Indian Railways. Growing faster than a Vande Bharat, but has the working capital cycle of a retired steam engine. Profit CAGR at 85%, inventory days at 216 — it’s a race between momentum and meltdown.
2. Introduction with Hook
Imagine if IRCTC’s menu got electrified and turned into a business — welcome to Concord Control Systems. This isn’t just some SME stock. It’s the hardware/software backbone to Indian Railways, with control panels, relays, electronics, and that sweet, sweet RDSO stamp of approval.
- 5Y Profit CAGR: 85%
- ROE FY25: 27%
- Debtor Days: 110 (because railway payments travel via bullock cart)
3. Business Model (WTF Do They Even Do?)
Concord Control Systems Ltd (CCSL) manufactures and supplies electromechanical and electronic systems for Indian Railways — like relays, safety gear, power converters, driver interface units, etc. It’s now also shifting from just selling parts to selling “solutions” — i.e., higher margin, higher complexity bundled systems.
- Clients: Indian Railways, RDSO-certified, metro railways
- Products: Control Panels, Automatic Emergency Light Systems, Battery Chargers, etc.
- OEM certified, ISO 9001:2015, and more nods than a Delhi bureaucrat during budget season.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (₹ Cr) | 49 | 66 | 124 |
| Net Profit (₹ Cr) | 5 | 13 | 23 |
| EPS (₹) | 9.54 | 21.41 | 35.95 |
| ROE (%) | 21% | 27% | 27% |
| OPM (%) | 16% | 26% | 23% |
| P/E | 50x | 34x | 50x (back again… SME magic!) |
5. Valuation
- Current Price: ₹1,810
- Book Value: ₹189
- P/E: 50.35
- Fair Value Range (SME logic with high growth + high risk): ₹1,200–₹2,200
- Anything above ₹2,200? You’re paying for dreams.
- Below ₹1,200? Maybe IRCTC cancelled the train.
6. What’s Cooking – News, Triggers, Drama
- May 2025: Acquiring rest of Advanced Rail Controls (10% stake left).
- 2024–25: ₹3.5 Cr preferential issue, ₹5.5 Cr investment in ARC subsidiary.
- 2023–25: Preferential allotments, new CFO, Rs. 5 Cr inter-corporate loans.
- RDSO Certifications: Upgrading status in Indian Railways.
- Product Pipeline: Prototype development for new relay panels — bigger, better, and more tender-worthy.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital (₹Cr) | 6 | 6 | 6 |
| Reserves (₹Cr) | 16 | 40 | 113 |
| Borrowings (₹Cr) | 3 | 3 | 0 |
| Total Liabilities | 30 | 60 | 136 |
| Fixed Assets (₹Cr) | 2 | 3 | 23 |
| Investments (₹Cr) | 2 | 4 | 7 |
| Other Assets (₹Cr) | 26 | 53 | 105 |
Key Points:
- Debt-free as of FY25
- Heavy asset additions (₹20+ Cr into fixed assets FY25)
- Reserves ballooning, no dilution (so far…)
8. Cash Flow – Sab Number Game Hai
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO (Operating) | -2 | 7 | 6 |
| CFI (Investing) | -1 | -5 | -70 |
| CFF (Financing) | 8 | -2 | 63 |
| Net Cash Flow | 4 | 0 | -0 |
Translation:
Company’s throwing cash into expansion like it’s Diwali. ₹70 Cr investing outflow in FY25 — likely factory ramp-up + ARC acquisition.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 43% | 48% | 37% |
| ROE | 21% | 27% | 27% |
| Inventory Days | 32 | 34 | 216 |
| Debtor Days | 67 | 83 | 110 |
| CCC | 70 | 70 | 265 |
| Working Cap Days | 97 | 75 | 195 |
- Inventory Days at 216? Someone left the stock on the shelf too long.
- CCC of 265 means: “Railway approvals aa rahe hain bhai, thoda time lagega.”
10. P&L Breakdown – Show Me the Money
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (₹ Cr) | 49 | 66 | 124 |
| EBITDA (₹ Cr) | 8 | 17 | 29 |
| Net Profit (₹ Cr) | 5 | 13 | 23 |
| EPS (₹) | 9.54 | 21.41 | 35.95 |
11. Peer Comparison
| Company | CMP ₹ | P/E | ROE % | Sales ₹Cr | PAT ₹Cr |
|---|---|---|---|---|---|
| Kaynes Tech | 5,998 | 137 | 11.0 | 2,722 | 293 |
| Syrma SGS | 678 | 70 | 10.2 | 3,787 | 171 |
| Honeywell Auto | 40,320 | 68 | 13.7 | 4,189 | 524 |
| Concord Control | 1,810 | 50 | 27.4 | 124 | 22.6 |
Concord: Smallest size, but highest ROE. SME with IR mojo.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Category | Sep ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|
| Promoters | 73.53% | 70.63% | 67.06% |
| FIIs | 0.00% | 0.02% | 0.00% |
| DIIs | 2.21% | 0.44% | 0.43% |
| Public | 24.26% | 28.92% | 32.51% |
| Shareholders Count | 583 | 1,328 | 1,621 |
Note:
- Promoters quietly offloading 6.5% stake over 1.5 years.
- Public stake jumped → Retailers boarding this train like it’s the last Vande Bharat home.
- Institutional trust? Nowhere to be seen.
13. EduInvesting Verdict™
Concord Control Systems is what happens when you mix a monopoly market (railways), decent promoters, and ambitious expansion — then stir in an SME IPO and sprinkle preferential allotments like coriander on biryani.
But buyer beware:
- Inventory stuck like a North Indian train in fog.
- No dividends despite free cash flow.
- P/E north of 50x… you better believe in the railway revival story.
Metadata
– Written by EduInvesting Desk | 12 July 2025
– Tags: Concord Control Systems, SME IPO, Indian Railways, RDSO, EduInvesting Style, Electricals, Railway Equipment, Small Cap Analysis, High Growth Stocks
