1. At a Glance
Magnus started life as an IT training and BPO company. After decades of losses, it quietly pulled the plug on that identity and re-emerged in FY24 as… an agro-products trader? From keyboards to kidney beans. Revenues finally arrived, but so did the existential questions.
2. Introduction with Hook
If Magnus were a Netflix series, Season 1 was titled “Ctrl+Alt+Del on IT Dreams.” Season 2? “Grains of Glory: The Agribusiness Awakening.”
- Revenue FY25: ₹3.19 Cr (up from zero for a decade)
- Net Profit FY25: ₹0.06 Cr (finally in green)
- Book value: -₹4.83 Cr (ouch)
- Rights issue coming: ₹49.5 Cr target
So… will it be a phoenix or another fried IPO samosa?
3. Business Model (WTF Do They Even Do?)
Then: IT training, BPO services, software solutions.
Now: Trading agro products. As in literally buying and selling farm goods.
- No factories
- No fixed assets
- No legacy clients
- Just… trade
Their model today is flipping agro inventory. That’s it. No production, no branding, just straight-up trading.
4. Financials Overview
| Year | Revenue (₹ Cr) | Operating Profit (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| FY23 | 0.00 | -0.13 | -0.29 | -0.86 | NA |
| FY24 | 0.67 | -0.16 | -0.38 | -1.12 | -23.9% |
| FY25 | 3.19 | 0.19 | 0.06 | 0.18 | 5.96% |
Big turnaround? Maybe. But remember: this is off a base of zero. Growth from nothing is mathematically impressive but economically hollow until scale arrives.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹9.10 |
| Market Cap | ₹3.08 Cr |
| Book Value | -₹4.29 |
| EPS (TTM) | ₹0.18 |
| P/E | 51.3x |
Fair Value Estimate (Generous Range)
| Method | FV Range (₹) |
|---|---|
| P/E x FY26 EPS of ₹0.5 | ₹8–10 |
| Rights Issue Adjusted BV | ₹6–8 |
| Asset-light EV multiple | ₹7–9 |
Fair Value Range: ₹7–10
(CMP ₹9.10 sits right in the fairy tale)
6. What’s Cooking – News, Triggers, Drama
- Rights Issue Approved (Jun 2025): Raising ₹49.5 Cr. That’s… 16x the current market cap.
- Corporate Rebrand: Now called Magnus Steel & Infra. Still trades grains, not steel.
- Auditor’s Note (Jun 2025): Unmodified opinion. First clean audit in years.
- Cash Generation: ₹0.29 Cr operating profit in Mar 2025 quarter.
Narrative: “Let’s pretend the past never happened.”
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹3.38 Cr | ₹3.38 Cr |
| Reserves | -₹4.93 Cr | -₹4.83 Cr |
| Borrowings | ₹1.60 Cr | ₹1.76 Cr |
| Total Liabilities | ₹0.42 Cr | ₹1.45 Cr |
| Fixed Assets | ₹0.00 | ₹0.00 |
Book Value per Share: -₹4.29
Net worth is still in Dante’s inferno. But hey, at least it’s burning slower now.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY24 | -0.18 | 0.00 | 0.18 | 0.01 |
| FY25 | -0.11 | 0.00 | 0.10 | -0.01 |
- Still dependent on financing activities.
- Operating cash losses finally narrowing.
- Business is yet to become truly self-funding.
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| Debtor Days | 201.6 | 162.5 |
| Inventory Days | 0.0 | 0.0 |
| ROCE | -457.1% | 105.6% |
| Working Capital Days | 10.9 | 35.5 |
| Interest Coverage | < 1x | < 1x |
Debtors are taking five months to pay. Not great. But ROCE went from deep red to three-digit green… on ₹0.19 Cr of EBIT. Let’s not celebrate just yet.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | OPM % | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY23 | 0.00 | NA | -0.29 | -0.86 |
| FY24 | 0.67 | -23.9% | -0.38 | -1.12 |
| FY25 | 3.19 | 5.96% | 0.06 | 0.18 |
A small win, but whether it scales or stalls is a bigger question than ChatGPT can answer.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE % | Revenue (Cr) | PAT (Cr) | OPM % |
|---|---|---|---|---|---|---|
| Waaree Energies | 3112 | 47.8 | 35.1 | 14444.5 | 1870.3 | 18.8 |
| Genus Power | 362 | 37.6 | 19.2 | 2442.0 | 293.0 | 19.2 |
| Apar Industries | 8671 | 42.4 | 32.1 | 18581.2 | 821.3 | 8.3 |
| Magnus | 9.1 | 51.3 | 105.6 | 3.19 | 0.06 | 5.96 |
P/E is more expensive than Genus or Apar, but on what basis? Delulu valuation.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | % Holding |
|---|---|
| Promoters | 47.6% |
| Public | 52.4% |
| DII/FII | 0% |
- Rights issue could significantly dilute equity.
- Over 11,700 shareholders still holding (bless their souls).
- New name = “Magnus Steel & Infra.” Still no steel. Definitely not infra.
13. EduInvesting Verdict™
Magnus has officially reinvented itself more times than a failed Bigg Boss contestant. While there’s some revenue traction and one positive quarter, this is still a nano-cap deep-value “project stock” living on borrowed time and fresh equity.
It’s trying to grow out of a negative net worth hole with a grain trading business and a rebrand that feels more aspirational than operational. If the ₹49.5 Cr rights issue goes through and is used wisely, a turnaround could technically happen. But right now? It’s one part revival story, two parts imagination.
For now, it’s a popcorn stock—watch, don’t clutch.
Metadata
– Written by EduInvesting Research | 13 July 2025
– Tags: Magnus Retail, Magnus Steel & Infra, Penny Stock, Turnaround, Rights Issue, Agro Trading, Smallcap Drama, Negative Net Worth, Financial Rebirth
