1. At a Glance
iStreet Network is a microcap phoenix in Mumbai’s digital alley, rising from negative book value to a 1266% net profit jump in one quarter. With a ₹21 Cr market cap and a history of, well, not existing financially, it’s suddenly back with ₹6 Cr sales. Turnaround or temporary sugar rush?
2. Introduction with Hook
Imagine Flipkart got lost on the way to your village, broke down, and opened a kiosk called iStreet Bazaar. That’s essentially this company.
- FY25 Q4 sales = ₹6.04 Cr (after years of zero revenue).
- Net profit in same quarter = ₹0.35 Cr, a 1266% increase.
- Book value = –₹0.71 (yes, negative), yet stock’s up 177% YoY.
So naturally, we ask: Is iStreet Network a retail tech underdog or just a flashier MLM that forgot to pivot?
3. Business Model (WTF Do They Even Do?)
Category: Internet & Catalogue Retail
Core Product: iStreet Bazaar — “Internet retail stores” for people without the internet.
What That Actually Means:
- Physical stores with no inventory.
- Customers browse catalogues on-screen.
- Orders placed online via the store (not by customers directly).
- Think Reliance Digital + Flipkart + Cable TV vibes, all mashed into ₹10/share DNA.
The Pitch:
“Take e-commerce to Bharat, one unplugged local bazaar at a time.”
The Reality:
Running losses for 8 years. Just returned from the dead.
4. Financials Overview
Latest Quarterly (Mar 2025):
| Metric | Value |
|---|---|
| Sales | ₹6.04 Cr |
| Net Profit | ₹0.35 Cr |
| OPM | 5.46% |
| EPS | ₹0.16 |
| ROCE (TTM) | 150% (LOL) |
| Market Cap | ₹21.5 Cr |
Historical Rollercoaster (Consolidated Sales):
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY18 | 0.08 | -2.09 |
| FY20 | 0.00 | -0.02 |
| FY22 | 0.17 | 0.01 |
| FY25 | 6.04 | 0.24 (annual) |
So, basically:
Revenue = Magic
Profit = Somehow Happened
ROE = Undetectable
5. Valuation
Current Price: ₹10.1
P/E: 89.7
Book Value: –₹0.71 (Negative Book Value Alert!)
Valuation Scenarios:
- Absolute Optimist: ₹0.4 Cr net profit + sales revival → ~25x P/E = ₹8–₹10 fair value.
- Realist: High-risk turnaround with opaque business model → ₹5–₹6.
- Pessimist: “Bhai, yeh stock mein kuch toh chal raha hai…” → ₹3.6 open offer floor.
Fair Value Range: ₹3.6 – ₹10 (Yes, wide AF. Like our skepticism.)
6. What’s Cooking – News, Triggers, Drama
Corporate Drama Highlights:
- Open Offer (Jan–Apr 2025):
- Offer to acquire 55.38 lakh shares at ₹3.60.
- New promoters entering the scene (approx. 40% stake sold).
- Price since then = nearly 3x.
- MD Resignation (Jul 2025):
- Meenu Malu steps down. No replacement announced yet.
- Cited “new leadership direction.”
Possible Triggers:
- Fresh funding round?
- Tech partner JV?
- Some unexplained future “pivot”?
7. Balance Sheet
Mar 2025 (₹ Cr):
| Metric | Value |
|---|---|
| Equity Capital | 8.52 |
| Reserves | –10.04 |
| Borrowings | 1.80 |
| Other Liabilities | 7.02 |
| Total Assets | 7.30 |
Key Notes:
- Networth still negative.
- ₹7 Cr of “other liabilities” magically appeared this year.
- Debt still low, but financial muscle = nonexistent.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | –0.29 | –0.06 | –0.20 | –0.55 |
| FY24 | –0.11 | 0.00 | 0.00 | –0.10 |
| FY25 | –0.02 | 0.02 | 0.00 | 0.00 |
Takeaway:
They’re not burning cash like a startup… they simply don’t have any. Still managing to breathe. Must be yogic pranayama.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| P/E | 89.7 |
| ROCE | 150% |
| Debtor Days | 436 (OMG) |
| OPM | 3.64% |
| ROE | NA (can’t divide by zero) |
| CMP/BV | ∞ (BV is negative) |
Analysis:
- That ROCE is from low base, not real ops efficiency.
- Debtor Days = Basically giving EMI of the next generation.
- Sexy headline ratios, stressy foundation.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Expenses | Net Profit |
|---|---|---|---|
| FY23 | 0.00 | 0.25 | –0.24 |
| FY24 | 0.00 | 0.13 | –0.13 |
| FY25 | 6.04 | 5.82 | 0.24 |
Trend:
Company went from zero sales to ₹6 Cr in one year. Either a new vertical clicked… or something was reverse-merged.
11. Peer Comparison
| Company | CMP | P/E | ROCE | Sales (₹ Cr) | PAT |
|---|---|---|---|---|---|
| iStreet | ₹10.1 | 89.7 | 150% | 6.04 | 0.35 |
| IndiaMART | ₹2605 | 29.6 | 34.2% | 1388 | 180.6 |
| JustDial | ₹944 | 13.7 | 15.3% | 1142 | 157.6 |
| Matrimony.com | ₹511 | 25.2 | 19.4% | 455 | 8.18 |
LOL Comparison Level:
They’re in the same “category” but leagues apart. This is like comparing a kid’s lemonade stand to Coca-Cola.
12. Miscellaneous – Shareholding, Promoters
Shareholding (June 2025):
| Category | % Holding |
|---|---|
| Promoters | 46.20% |
| Public | 53.80% |
| Shareholders | 11,345 |
Key Corporate Action:
Open offer for 55.38 lakh shares at ₹3.60 — triggered by a Share Purchase Agreement in Jan 2025 for 39.91% stake. New control, new promises, same chaos?
13. EduInvesting Verdict™
iStreet Network: Comeback of the Year or Camouflage of the Decade?
This penny stock rebooted itself in FY25 with real revenue, a profit, and a capital buzz. But it still walks with the limp of negative reserves, debt spikes, and an unclear promoter story.
What to Watch:
- Can they sustain this ₹6 Cr sales or was it a one-off?
- What’s the real business engine post-acquisition?
- Will the street believe the street bazaar again?
Metadata
– Written by EduInvesting Analyst Team | 13 July 2025
– Tags: microcap, turnaround, open-offer, retailtech, penny stock, iStreet, bazaar model, BSE524622, smallcap, India turnaround, negative book value
