1. At a Glance
Fervent Synergies just reported a ₹38 lakh net profit in Q1 FY26. No, that’s not a typo—it’s what some startups call a “marketing budget.” From pharmaceuticals to random trading and now financial wizardry, this BSE-listed microcap is India’s answer to the question: “Wait… what do they even do again?”
2. Introduction with Hook
Imagine a company that changes business models faster than your Gen Z cousin changes Instagram bios. That’s Fervent Synergies for you. One year it’s chemicals, next year food, then suddenly you’re reading board minutes about convertible warrants like it’s a fintech startup.
Two brain ticklers:
- Stock P/E = 41.3 (For a ₹3 Cr PAT?)
- Q1 Sales = ₹68 lakh; Profit = ₹38 lakh. Who needs revenue when vibes are strong?
3. Business Model (WTF Do They Even Do?)
Fervent started with pharmaceuticals and chemicals, dabbled in API trading, then decided importing solvents wasn’t thrilling enough—so now it moonlights in finance and food. Next stop: cryptocurrency cafe?
Basically, they do “whatever makes a buck,” sprinkled with vague strategic aspirations. Think of it as a startup… just with 13 years of confusion and no VC funding.
4. Financials Overview
We’re not saying it’s a shell, but here’s what the “operating” side looks like:
| Metric | Q1 FY25 | Q1 FY26 |
|---|---|---|
| Revenue | ₹5.40L | ₹68L |
| EBITDA | ₹50L | ₹39L |
| Net Profit | ₹50L | ₹38.26L |
| OPM % | 9.26% | 57.35% |
OPM above 50%? Either the margins are god-tier, or they forgot to include actual expenses.
5. Valuation
Valuation here is more spiritual than financial:
a) P/E Valuation:
- EPS TTM = ₹0.74
- Peer P/E = ~35
- FV = ₹0.74 × 35 = ₹26
b) Book Value Method:
- Book Value = ₹11.1
- CMP = ₹27 → P/B = 2.43x
- FV Range = ₹12–₹18 (fair-ish)
Bottom Line: At ₹27, you’re paying for a story that’s still being written in invisible ink.
6. What’s Cooking – News, Triggers, Drama
- Q1 PAT at ₹38.26L: That’s 6x YoY growth—but on a base so small, even Excel didn’t notice.
- Statement of No Deviation: Company confirmed it used ₹6.25 Cr of convertible warrant funds correctly. No yacht for the CFO, phew.
- Promoter Holding Up: From 71.7% to 74.75%. Are they seeing something we don’t? Or are they just good at timing BSE microcap rallies?
7. Balance Sheet
| Item | FY25 | Comment |
|---|---|---|
| Equity Capital | ₹43.75 Cr | Increased via warrants |
| Reserves | ₹4.89 Cr | Grew post turnaround PAT |
| Borrowings | Nil | Zero debt; that’s something |
| Total Assets | ₹48.78 Cr | Modest and manageable |
Net worth isn’t flashy, but at least they’re not drowning in loans like your cousin with a BBA and no job.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY24 | ₹-0.20L | ₹0 | ₹0 | ₹-0.20L |
| FY25 | ₹-15.08L | ₹0 | ₹15.12L | ₹+0.04L |
Operating cash flow is allergic to positivity. Good thing there was a small financing inflow—possibly that ₹6.25 Cr warrant issue saving the day.
9. Ratios – Sexy or Stressy?
| Ratio | Value | Comment |
|---|---|---|
| ROCE | 7.47% | Not terrible, not impressive |
| ROE | 7.47% | Matches ROCE. Stable but meh. |
| P/E | 41.3x | Very optimistic for a ₹3 Cr PAT |
| D/E | 0.00 | Debt-free, because there’s no need |
If ratios were Tinder bios: “Debt-free, small earner, dreaming big.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | PAT (₹ Cr) |
|---|---|---|
| FY23 | ₹4.63 | ₹0.23 |
| FY24 | ₹24.31 | ₹2.95 |
| FY25 | ₹32.46 | ₹3.27 |
Congrats to the company on learning how to sell stuff in FY24. FY23 was just a test run, apparently.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Redington | 99,333 | 1,170 | 20.27x |
| MSTC | 311 | 196 | 18.26x |
| BN Holdings | 299 | 19.7 | 135x |
| Fervent Synergy | 32 | 3.27 | 41.3x |
Redington looks like Amazon. Fervent looks like your corner kirana that decided to IPO.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2023 | Jun 2025 |
|---|---|---|
| Promoters | 73.33% | 74.75% |
| Public | 26.67% | 25.25% |
| Shareholders | ~2,827 | ~3,598 |
Retail participation is climbing—probably due to WhatsApp groups more than analyst calls.
Also, company held back on dividend again. Because why share when you’re barely surviving?
13. EduInvesting Verdict™
Fervent Synergies is the corporate version of a “serial hobbyist”—it’s been a chemical trader, financial investor, food biz experimenter, and now just vibes.
Despite the ₹3 Cr profit and cleaner books, the core business remains foggy. But hey, the promoters are buying and the stock doubled in a year. So if you’re betting on momentum and not business, welcome to BSE’s parallel universe.
A fun stop for thrill-seeking microcap enthusiasts. Just don’t expect a business model you can explain to your CA.
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Fervent Synergies, Microcap, Trading, EduInvesting Premium
