🟢 At a Glance
Once a cold rolled steel player, now a consultancy and agri-trader, IMEC Services is a smallcap anomaly with a stock price that’s up 1600% in 1 year. ROE is 177%, P/E is 0.92, and it claims to earn more from… we don’t know what exactly. Red flags? Plenty. But profit? Apparently yes. We dig in.
1. 🎬 Introduction with Hook
If you sold steel, then went broke, and then rebranded as a “consulting firm”—congrats, you’re IMEC Services.
From Ruchi Strips & Alloys to IMEC Services, this company’s journey has all the drama of a Bollywood redemption arc—except we don’t know if the climax is happy or an illusion.
Its stock is up from ₹7.7 to ₹123 in a year. That’s a 16x multibagger move. Now everyone wants to know—real turnaround or pump-n-dump?
2. 🏗️ Business Model (WTF Do They Even Do?)
Let’s try to make sense of the shapeshifting:
- 🏭 Old Avatar: Manufacturer of Cold Rolled Steel (1L TPA capacity) in Indore
- 🔄 2011: Slump sale of steel business to RSAL Steel Pvt Ltd
- 🧮 New Avatar: Consulting in engineering, IT & technical services
- 🛒 Also trades agricultural products, metals & metal alloys – which is vague AF
- 📃 No fixed assets. No R&D. No visible employees on website. No LinkedIn footprint.
It’s like calling yourself a “fitness coach” after selling your dumbbells on OLX.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
Let’s talk real numbers:
| Metric | FY25 (TTM) |
|---|---|
| Revenue | ₹28 Cr |
| Net Profit | ₹25 Cr |
| Net Profit Margin | 88% 🤯 |
| ROE | 177% 🔥 |
| OPM | 97% in Q4FY25 |
| EPS (FY25) | ₹133.79 |
🧠 Reminder: All this on a ₹23 Cr market cap. So either it’s the most efficient company in Indian history… or something smells fishy.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Price | ₹123 |
| EPS (FY25) | ₹133.79 |
| P/E | 0.92x |
| Book Value | ₹142 |
| P/B | 0.87x |
Fair Value Range Estimate:
Let’s be generous and slap 3x–5x P/E on current EPS:
- FV Range = ₹401 to ₹669
But wait. The real question is — is this EPS real?
Because this is one of those rare times where the stock looks too cheap to be true.
5. 🔥 What’s Cooking – News, Triggers, Drama
🧾 Key Events:
- 2024: ₹25 Cr net profit suddenly appears after a decade of zombie-like operations
- Feb 2024: CEO resignation + Company Secretary resignation (twice)
- 2023: RSAL Steel, its ex-subsidiary, goes through NCLT resolution
- Equity shrank from ₹50 Cr to ₹2 Cr post capital reduction
👀 Red Flags:
- Massive sudden profit spike with no operations footprint
- 65.5% of promoter shares pledged
- High receivable days (266) and working capital issues
- Zero dividend policy despite fat bottom line
This is a forensic auditor’s dream.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹31 Cr |
| Equity Capital | ₹2 Cr |
| Reserves | ₹25 Cr |
| Borrowings | NIL |
✅ No debt
🚨 Reserves moved from negative ₹48 Cr to ₹25 Cr in 1 year—without any large revenue
Witchcraft?
7. 💵 Cash Flow – Sab Number Game Hai
| FY25 Cash Flow Item | ₹ Cr |
|---|---|
| Cash from Ops | ₹9 Cr |
| Cash from Investing | -₹5 Cr |
| Cash from Financing | NIL |
| Net Cash Flow | ₹3 Cr |
At least the cash exists. Or so the numbers say.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value | Comment |
|---|---|---|
| ROCE | 177% | Glamorous, but 🤨 |
| ROE | 177% | Suspiciously high |
| Working Capital Days | 298 | Cash trap alert |
| Debtor Days | 266 | Huge collections risk |
| Pledged Shares | 65.5% | Not cool, bhaiya |
These look like the financial version of Photoshopped abs.
9. 📈 P&L Breakdown – Show Me the Money
FY25 P&L Summary:
- Revenue: ₹28 Cr
- Expenses: ₹3 Cr
- Operating Profit: ₹25 Cr
- Other Income: ₹1 Cr
- Net Profit: ₹25 Cr
OPM = 88%.
For context, Apple Inc. has ~30% OPM.
Either they found the cheat code to capitalism… or someone’s cooking very well.
10. 🆚 Peer Comparison – Who Else in the Game?
| Company | MCap (₹ Cr) | P/E | ROE | Comments |
|---|---|---|---|---|
| Dhruv Consultancy | 140 | 20x | 8% | Infra + engineering |
| EKI Energy | 345 | — | -0.2% | Carbon credit biz |
| IIRM Holdings | 497 | 22x | 18.5% | Stable, profitable |
| IMEC Services | 23.3 | 0.92x | 177% | Cheap AF… or fake AF? 😶 |
11. 🧩 Miscellaneous – Shareholding, Promoters
| Category | % Holding |
|---|---|
| Promoters | 30.3% |
| Public | 69.5% |
| DIIs | 0.16% |
| Pledged | 65.5% of promoter holding |
📉 Promoter stake fell to 26.6% in 2023 before recovering to 30.3%.
👻 No mutual fund or institutional interest = retail trap potential?
Also, shareholders dropped from 24K+ to 10K post restructuring. That’s not exactly inspiring.
12. ⚖️ EduInvesting Verdict™
IMEC Services is a:
- ✨ 16x multibagger in 12 months
- 🧾 Claims to earn ₹25 Cr profit on ₹28 Cr revenue
- 🧨 Has no visible assets, ops, or LinkedIn employees
- ⚠️ 65% promoter shares pledged
- 🔥 Looks too good to be legal — not just true
Is it a phoenix rising from Ruchi’s ashes, or just a classic case of stock manipulation dressed as transformation?
We leave that to SEBI. But for investors, the signal is clear:
“Jitna shiny dikhe, utna balance sheet pakad ke dekho.” 📉
Fair Value Range (only if EPS is real): ₹401 – ₹669
But if not? Then even ₹123 could be generous.
✍️ Written by Prashant | 📅 9 July 2025
Tags: IMEC Services, multibagger, stock manipulation, consulting firm, BSE microcap, Ruchi Strips, turnaround stocks, pledged shares, forensic red flags
