1. At a Glance
A phoenix stock if there ever was one. Once declared dead with -₹94 Cr in reserves and zero sales, Marsons now boasts ₹168 Cr in annual revenue, ₹28 Cr in net profit, and a market cap of ₹3,667 Cr. Did someone say “Turnaround of the Decade”?
2. Introduction with Hook
Remember that friend from school who failed math but now runs a VC-funded startup? That’s Marsons Ltd in transformer form.
- Stock up 355% YoY, 175% CAGR in 3 years.
- ROE: 41.1% | ROCE: 38% | P/E: 131
- ₹52 Cr transformer orders from UP Govt + UK subsidiary plans + solar project orders
This isn’t just a recovery. It’s a Tesla coil of a comeback—minus the electric cars.
3. Business Model (WTF Do They Even Do?)
Marsons Ltd makes power and distribution transformers—those big boxy beasts you ignore on the roadside.
- Product Range: 10 KVA to 160 MVA, up to 220 kV class
- Services: Manufacturing, erection, testing, commissioning
- Certifications: ISO 9001:2008, CPRI, NABL, ERDA accredited
- Clients: Government bodies (UP, North East), solar power EPCs
- New Playbook: Diversifying into renewable energy + setting up a UK subsidiary
Once a legacy transformer maker, now hustling like a startup with electrical muscle.
4. Financials Overview
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | PAT Margin (%) |
|---|---|---|---|---|
| FY23 | 5.0 | 3.0 | 23% | 60.0% |
| FY24 | 6.0 | 1.0 | 18% | 16.7% |
| FY25 | 168.0 | 28.0 | 15% | 16.7% |
- Yes, you read that right: 3,200% sales jump in 2 years
- PAT up from ₹1 Cr to ₹28 Cr
- From making losses in 2018–21 to flexing transformer-sized profit biceps in FY25
5. Valuation
Let’s play the “How overpriced is this?” game.
a) P/E Method
- EPS FY25: ₹1.63
- P/E range: 50x to 80x for high-growth, microcap industrial
→ Fair Value = ₹82 to ₹130
b) EV/EBITDA Method
- Assume EBITDA ≈ ₹28 Cr (same as PAT, being conservative)
- EV/EBITDA: 20x to 25x
→ EV Range = ₹560 Cr to ₹700 Cr
→ Add ₹105 Cr net worth → Equity Value = ₹665–₹805 Cr
→ Per Share FV = ₹38 to ₹46 (based on 17 Cr shares)
Current Market Cap: ₹3,667 Cr
Verdict: This one’s priced like an AI stock during earnings week.
6. What’s Cooking – News, Triggers, Drama
- Massive Orders: ₹52 Cr from UP govt (May 2025), ₹43 Cr earlier from solar, NE, others
- UK Subsidiary: Global ambition or just PR sugar?
- Acquisition: COSO L Developments Ltd—vertical integration or lateral confusion?
- Dilution Drama: ₹500 Cr raised through preferential allotments in 2024
This is less of a transformer company and more of a soap opera with voltage.
7. Balance Sheet
| Item | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|
| Equity Capital | ₹12 Cr | ₹14 Cr | ₹17 Cr |
| Reserves | ₹-9 Cr | ₹0 Cr | ₹105 Cr |
| Borrowings | ₹15 Cr | ₹9 Cr | ₹3 Cr |
| Total Assets | ₹23 Cr | ₹30 Cr | ₹152 Cr |
Key Points:
- Company wiped out negative reserves—finally in the green
- Debt reduced to near zero = near debt-free status
- Massive asset growth in FY25 = likely driven by capex + order book execution
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow (₹ Cr) |
|---|---|---|---|---|
| FY23 | 0.0 | 8.0 | -8.0 | 0.0 |
| FY24 | -4.0 | -0.0 | 4.0 | 0.0 |
| FY25 | -35.0 | -38.0 | +74.0 | +1.0 |
Takeaway: Cash flow is MIA. Profits exist only on paper unless collection improves.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE (%) | 26% | 4% | 41.1% |
| ROCE (%) | 1% | 3% | 38.0% |
| Debtor Days | 756 | 827 | 148 |
| Inventory Days | 39 | 100 | 42 |
| Payables Days | 302 | 240 | 71 |
| Cash Conv. Cycle | 493 | 687 | 120 |
Good: ROE, ROCE back with vengeance
Bad: Working capital still a struggle—but improving
10. P&L Breakdown – Show Me the Money
| Year | Sales | EBITDA | EBITDA % | Net Profit | EPS |
|---|---|---|---|---|---|
| FY23 | ₹5 Cr | ₹1.2 Cr | 23% | ₹3 Cr | ₹0.26 |
| FY24 | ₹6 Cr | ₹1.1 Cr | 18% | ₹1 Cr | ₹0.04 |
| FY25 | ₹168 Cr | ₹28 Cr | 15% | ₹28 Cr | ₹1.63 |
Insights: That FY25 revenue jump is the stuff of Bollywood climaxes. Let’s hope it’s not a one-hit wonder.
11. Peer Comparison
| Company | MCap (Cr) | ROE (%) | P/E | Sales (Cr) | OPM (%) |
|---|---|---|---|---|---|
| Waaree Energies | 89,405 | 27.6 | 47.8 | 14,444.5 | 18.8 |
| Apar Inds | 34,832 | 19.6 | 42.4 | 18,581.2 | 8.3 |
| Genus Power | 11,009 | 17.2 | 37.6 | 2,442 | 19.2 |
| Marsons Ltd | 3,667 | 41.1 | 131 | 168 | 15.0 |
Verdict: Marsons is the microcap mutant with best ROE but also the most inflated P/E.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun ’22 | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|---|
| Promoters | 96.4% | 75.0% | 53.6% | 53.6% |
| Public | 3.6% | 25.0% | 46.4% | 46.4% |
| DIIs | 0.0% | 0.0% | 0.0% | 0.0% |
- Massive dilution through preferential allotment
- Strategic investors may be holding backdoor entry keys
- Retail love shows in shareholder count: from 10k to 33k in 2 years
13. EduInvesting Verdict™
Marsons is what happens when a legacy transformer firm dies, resurrects, and returns looking hotter than its 1980s self. It’s gone from insolvency zombie to stock market rockstar. But behind the glamour, it’s still ironing out working capital snarls and proving its FY25 performance isn’t just a fluke. Valuation? Stretched tighter than a DTC bus in monsoon.
Verdict: A miracle on paper. A cautionary spark in reality. Handle with voltage gloves.
Metadata
– Written by EduInvesting Research Team | July 13, 2025
– Tags: Transformers, Microcap Revival, Power Sector, High ROE Stocks, Marsons Ltd, Industrial Turnarounds
