At a Glance
Who knew trading stationery and securities could make headlines? IFL Enterprises just dropped a Q1 FY26 stunner – Revenue ₹33.41 Cr (+118% YoY) and PAT ₹5.22 Cr (multi-fold growth). The stock is trading at ₹0.90 (facepalm penny level), but investors can’t ignore its explosive profit growth. Caveat: auditors are already frowning over documentation lapses.
1. Introduction
IFL Enterprises is that kid in class who no one took seriously, until one day they aced all subjects (with a few suspicious whispers about how). The company started as a trader of paper and fabric, diversified into share trading, and now, with 949% TTM profit growth, it’s making bulls raise an eyebrow. Yet, governance red flags lurk like jump scares in a horror movie.
2. Business Model (WTF Do They Even Do?)
- Core Activities:
- Trading in paper, stationery, and fabrics.
- Acquisition & trading of shares, bonds, and securities.
- New Ventures: Organic waste management (because why not?).
- Revenue Drivers: Mostly trading activities, with paper-thin margins (pun intended).
This is more of a trading house with some corporate bling than an industrial powerhouse.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹33.41 Cr (+118%)
- EBITDA: ₹4.77 Cr (OPM 14.3%)
- PAT: ₹5.22 Cr (EPS ₹0.04)
- Net Margin: 15.6% (a miracle for a trading co.)
TTM Numbers
- Revenue: ₹86.6 Cr
- PAT: ₹7.97 Cr
- Profit Growth: +949% TTM
4. Valuation
- P/E: 14x – cheap? Not really, given risk.
- P/B: 1.4x – investors paying barely over book value.
- EV/EBITDA: ~9x – acceptable.
Fair Value Range: ₹0.75 – ₹1.10 (current price in range, speculative upside).
5. What’s Cooking – News, Triggers, Drama
- Q1 FY26: Big revenue jump, multi-fold PAT.
- Organic Waste Management: A strategic pivot? Or a distraction?
- Governance Issues: Auditor’s qualified opinion on loans, GST, and documentation.
- Social Media Drama: Company denied unauthorized stake-sale claims.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 27.6 | 28.1 | 101.6 |
| Liabilities | 2.6 | 2.1 | 19.9 |
| Net Worth | 25.0 | 26.5 | 81.7 |
| Borrowings | 0.0 | 0.34 | 3.6 |
Comment: Asset jump looks dramatic – scrutiny needed.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -1.99 | -1.82 | -27.2 |
| Investing | -17.6 | +2.4 | -22.4 |
| Financing | +18.3 | -0.05 | +49.5 |
Observation: Cash flows scream “funded by external inflows”.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 4% | 5% | 6% |
| ROCE | 4% | 6% | 7% |
| PAT Margin | 3% | 2% | 7% |
| D/E | 0.0 | 0.01 | 0.04 |
Verdict: Slightly sexy, mostly stressy.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 5.6 | 8.2 | 68.5 |
| EBITDA | -0.21 | 0.19 | 1.45 |
| PAT | 0.51 | 1.00 | 2.88 |
Comment: FY25 revenue boom – needs explanation beyond “growth”.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Redington | 99,334 | 1,171 | 19 |
| MSTC | 311 | 197 | 18 |
| BN Holdings | 299 | 20 | 142 |
| IFL | 86.6 | 8 | 14 |
Verdict: Tiny compared to peers, but growing fast.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 0% (exited).
- FIIs: 16% (recent entry – speculative).
- Public: 84% (retail-driven frenzy).
12. EduInvesting Verdict™
IFL Enterprises is not your average penny stock – it’s a volatile cocktail of explosive growth, governance concerns, and speculative play. While revenue & PAT are skyrocketing, cash flows and auditor qualifications hint at caution. The absence of promoters is a red flag.
SWOT Analysis
- Strengths: High growth, debt-free.
- Weaknesses: Governance issues, cash flow gaps.
- Opportunities: Diversification, FIIs interest.
- Threats: Regulatory scrutiny, liquidity risks.
Final Word: This is the kind of stock where you either moon or burn. Handle with oven mitts.
Written by EduInvesting Team | 29 July 2025
SEO Tags: IFL Enterprises, Penny Stocks, Q1 FY26 Result
