🔍 At a Glance
Kore Digital Ltd was once hyped as the next big thing in 5G infrastructure. With a dream run from IPO to ₹952, it got retail investors all fired up — only to crash 67% to ₹317. Now, with FY25 profits at just ₹32 crore, no dividend, high receivables, and negative cash flow, the question is: was this just a pump and dump or is there real telecom muscle under the hood?
🏢 About the Company
Kore Digital Ltd (NSE SME: KDL), founded in 2009, operates in the telecom infrastructure services space.
What they do:
- Build telecom towers and optical fiber networks
- Hold an Infrastructure Provider-I license from the Department of Telecommunications
- Serve telecom network operators and corporates (mostly in Maharashtra)
The promise? Ride the 5G and digital India boom.
The problem? The engine’s sputtering, not roaring.
👨💼 Key Managerial Personnel (KMP)
| Name | Role |
|---|---|
| Piyush Lohia | Managing Director |
| Vikas Lohia | Executive Director |
| Rahul Mishra | CFO |
| Ravi Bhatia | Independent Director |
👀 Not much is known about client wins or execution prowess — the promoters have stayed under the radar while the stock price did all the talking (and screaming).
📊 FY25 Financial Summary
| Metric | Value (FY25) |
|---|---|
| Revenue | ₹328 Cr |
| Net Profit | ₹32 Cr |
| Operating Profit Margin | 14% |
| EPS | ₹26.36 |
| Tax Rate | 24% |
| Dividend | ₹0.00 |
| Net Cash Flow | -₹38 Cr |
| Debtor Days | 156 😬 |
So, a ₹317 stock with ₹26.36 EPS = P/E of ~12. Sounds okay?
But hang on. Let’s talk cash. Or lack of it.
📉 Why the Stock Fell 67% from ₹952 to ₹317
Let’s call it what it is: SME IPO FOMO + Operator Exit.
- 🚨 Listing pop drove it to ₹952 in peak retail mania
- 📉 Now down 67% with no growth, no moat, and no story refresh
- 📉 FY25 cash flow from operations: ₹13 Cr
- 📉 Cash spent on capex/investments: ₹57 Cr
- 📉 Net cash burn: ₹38 Cr
Meanwhile, public shareholding has ballooned from 28% to nearly 37% in 1 year. Retail got dumped on — and how.
📈 Valuation Check: Is ₹317 Still Overpriced?
| Metric | Value |
|---|---|
| EPS FY25 | ₹26.36 |
| P/E Range | 8x–12x |
| FV Range | ₹210–₹315 |
👉 CMP ₹317 = Upper end of fair value band — but with risk of earnings flattening and cash stress.
So is it worth ₹317?
Only if you believe receivables will be recovered, growth will resume, and cash flow improves — all of which are… TBD.
📦 Balance Sheet Breakdown
| Item | Value (₹ Cr) | Comment |
|---|---|---|
| Equity Capital | 12 | Low base |
| Reserves | 94 | Not bad |
| Borrowings | 7 | Almost debt-free ✅ |
| Other Liabilities | 133 | ⚠️ High for this scale |
| Fixed Assets | 39 | Infra-heavy, not asset-light |
| CWIP | 24 | Capex still ongoing |
| Debtors | Huge | 156 days = Payment delays 😬 |
High receivables = low liquidity = financial anxiety.
🧠 EduInvesting Take
Kore Digital was marketed like Airtel, but is operating like MTNL.
Let’s be brutally honest:
- It’s a niche infra company in a state-level telecom contracting model
- No clear national expansion roadmap
- No recurring annuity income model
- And no dividend — again
It’s not a zero. But it’s not a ₹900 stock either. At ₹317, you’re basically betting the 5G infra story revives, they collect their dues, and expand outside Maharashtra.
Would we touch this? Only with rubber gloves.
🔥 Risks & Red Flags
- ❗ 156 debtor days = chronic late payments
- ❗ No dividend despite profit = liquidity crunch?
- ❗ Negative net cash flow in FY25
- ❗ SME stock volatility = operator-driven
- ❗ No sectoral moat or big client announcements
And yeah — it’s already dropped 67%. Just because a stock fell doesn’t mean it’s cheap. Sometimes… it’s just falling correctly.
📉 Price Action Recap
- 📈 Listed at ₹180 in 2023
- 🚀 Hit ₹952 within months on operator action
- 💀 Down to ₹317 now
- 🔁 Struggling to find direction as institutions stay away
🧾 Final Verdict
Kore Digital isn’t a fraud.
But it’s no multibagger either.
It’s what happens when an average business gets extraordinary hype — and then comes crashing back to earth.
So is it worth ₹317?
Only if you’re into high-risk, low-volume, delayed-payment telecom thrillers.
Otherwise, this one’s best left on airplane mode.
Author: Prashant Marathe
Date: 11 June 2025
Tags: Kore Digital share price, SME IPO crash, Telecom Infra stock, Kore Digital FY25 results, Kore Digital stock review, 5G stocks India, operator exit, SME pump dump
