Mehai Technology Ltd: ₹136 Cr Sales, 1,334% Profit Growth, and Valuation Richer than Patna’s Wedding Caterers
1. At a Glance
Mehai Technology Ltd, a small-cap electronics retailer-turned-“diversification machine,” has gone from ₹6 Cr sales in FY22 to ₹136 Cr in FY25 — that’s an 804% sales growth. Profit after tax? Up from peanuts to ₹8.3 Cr. Stock price? Rocketed 204% in one year. But here’s the kicker — it trades at 72× earnings and 5.2× book value, making it more expensive than buying popcorn at a multiplex.
2. Introduction
Picture this: a small Patna-based electronics trader suddenly starts posting growth numbers that make even startup founders jealous. Sales multiplied by 20x in three years, profits by 13x, and shareholders are wondering if this is the next “D-Mart of Bihar” or just an over-leveraged Reliance Digital wannabe.
Mehai started in 2013 with trading and electronics retail, acquired Momentous Retail in 2022 (16 stores in Bihar), and has since expanded into Kolkata with plans for more outlets. The script looks like “small-town retail underdog takes on the big city malls.”
But — and it’s a big but — cash flows are negative, debt has jumped from zero to ₹39 Cr, promoter shareholding has been diluted, and the stock is priced like it’s already a pan-India chain. The auditor in me smells either genuine hockey-stick growth or a potential banana peel moment.
3. Business Model (WTF Do They Even Do?)
Mehai’s core business = electronics retail and trading. Think refrigerators, ACs, TVs, washing machines, mobiles — all the usual suspects.
Revenue split (FY22):
Electronic items: ~28%
Trading activity: ~72%
Acquisition of Momentous Retail gave them a chain of 16 stores in Patna. Strategy = cluster-based retail + expansion into Kolkata. Basically, the “More Stores” model, but for consumer electronics.
Services segment (IT, business solutions) is so small it feels like a side hustle they forgot to delete from their website.
So yes, this is a B2C play, very different from the chemical/industrial names we roast. Margin profile is thin, scaling depends on store efficiency, and competition is cutthroat (Reliance Digital, Vijay Sales, Amazon, Flipkart).
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr
QoQ %
FY25 (TTM)
Revenue
₹18.3 Cr
₹1.99 Cr
+821%
₹136 Cr
EBITDA
₹2.66 Cr
₹0.64 Cr
+315%
₹15 Cr
PAT
₹1.11 Cr
₹0.15 Cr
+560%
₹8.3 Cr
EPS (₹)
0.03
0.01
+200%
0.27
💡 Commentary: The YoY growth numbers look like someone accidentally pressed “add an extra zero.” But high P/E (72×) and EV/EBITDA (41×) suggest the market is already assuming future dominance.
5. Valuation (Fair Value RANGE Only)
P/E Method: At 72× FY25 EPS of ₹0.27 → CMP ₹16.2. If sector trades at ~25–30×, FV range would be ₹5–₹8/share.
EV/EBITDA: EV ₹638 Cr / EBITDA ₹15 Cr = 41×. Peers like Redington trade at ~8–10×. Normalized FV range = ₹8–₹12/share.
DCF: Assuming sales double to ₹250 Cr in 3 years with stable OPM 10%, PAT ~₹18–20 Cr → FV ₹12–₹18/share.
👉 FV Range: ₹8–₹18/share. (For education only, not advice.)
6. What’s Cooking – News, Triggers, Drama
Fund Raising: Board meets Aug 2025 to raise equity (via rights/warrants). Already issued 2.78 Cr warrants at ₹33.60 in May. Dilution risk rising.
Projects: Bagged water infra contracts worth ₹100 Cr+ in FY25 (tubewell, HPCL drinking water). Yes, a retailer now
