1. At a Glance
Coromandel Engineering, a Murugappa Group veteran, trades at ₹60.9 with a P/E of 494 and book value ₹1.88 (yes, it’s 32x its book value). Sales collapsed by -68% TTM, but net profit magically turned positive in FY25. A zombie that just learned to moonwalk.
2. Introduction with Hook
Imagine a 77-year-old bodybuilder returning to the gym – that’s Coromandel. After years of financial cardio arrest, Q4FY25 shows Net Profit ₹2.8 Cr, OPM soaring to 58% (fluke alert!). But is it a one-off or the start of a comeback saga?
3. Business Model (WTF Do They Even Do?)
- Construction Contracting: Factories, plants, hotels, apartments.
- Property Development: Premium projects in Chennai & Bangalore.
- Legacy Flex: Built LIC Building, Windsor Manor, Chola Sheraton.
Basically, a heritage contractor stuck in a modern-day gladiator fight.
4. Financials Overview
- FY25 Revenue: ₹31 Cr (vs ₹96 Cr FY24)
- Net Profit: ₹0.41 Cr (finally positive)
- ROE: 8.4%
- Market Cap: ₹202 Cr
Revenues fell off a cliff, but profits staged a cameo.
5. Valuation
- P/E: 494 (valuation laughing in your face)
- P/B: 32.4x
Fair Value Range: ₹20–₹35. Anything above is pure optimism.
6. What’s Cooking – News, Triggers, Drama
- Share subdivision & MoA revamp approved.
- Preferential shares allotted at ₹40.05 (July 2025).
- Investment in MPT Constructions for JV projects.
- Promoter stake dipped to 70.9% (was 74.5%).
Drama: Promoters trimming while stock spikes.
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Assets | ₹76 Cr | ₹76 Cr |
| Liabilities | ₹56 Cr | ₹47 Cr |
| Borrowings | ₹17 Cr | ₹23 Cr |
| Net Worth | ₹3.5 Cr | ₹6.2 Cr |
Leverage stable, reserves still negative territory (-₹27 Cr).
8. Cash Flow – Sab Number Game Hai
| Particulars | FY24 | FY25 |
|---|---|---|
| Operating CF | ₹10.7 Cr | ₹-1.6 Cr |
| Investing CF | ₹0.05 Cr | ₹1.7 Cr |
| Financing CF | ₹-10.7 Cr | ₹0.2 Cr |
Operating cash flipped negative just when investors started smiling.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 8.4% |
| ROCE | 8.3% |
| D/E | 0.3x |
| PAT Margin | 9.9% |
| P/E | 494 |
Looks sexy only in Excel.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹126 Cr | ₹0.56 Cr | ₹-4.5 Cr |
| FY24 | ₹96 Cr | ₹0.76 Cr | ₹-4.4 Cr |
| FY25 | ₹31 Cr | ₹3.1 Cr | ₹0.41 Cr |
Revenue shrunk like jeans after a hot wash, but margins improved.
11. Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| DLF | 7,993 | 4,657 | 44 |
| Oberoi Realty | 4,869 | 2,062 | 30 |
| Coromandel | 31 | 0.41 | 494 |
Peer table screams: why are you here?
12. Miscellaneous – Shareholding, Promoters
- Promoters: 70.9% (declining)
- Public: 29.1%
- Shareholders: down to 3,106 (they saw the P/E).
13. EduInvesting Verdict™
Coromandel is like that old building it once constructed – charming but crumbling. Financially fragile, overpriced, yet occasionally flexing positive quarters. Watchlist material, not conviction play.
Written by EduInvesting Team | 27 July 2025
Tags: Coromandel Engineering, Murugappa Group, Property Development, Construction Revival, EduInvesting Premium
