📆 CMP ₹116 | Market Cap ₹249 Cr | P/E 395x | Book Value ₹15.9
✍️ Written by Prashant | 📅 July 5, 2025
1. At a Glance (Excerpt)
Milgrey Finance & Investments Ltd — a ghost from the 80s — once financed Bollywood film producers and now… just “invests in securities”. Despite near-zero revenues, near-zero RoE, and near-invisible profits, the stock has spiked 78% in a year and trades at a P/E of 395. What’s cooking? Probably nothing. But let’s pretend we’re SEBI for a moment.
2. 🎬 Flashback Intro – From Films to Finance Fables
Founded in 1983, Milgrey sounds like a character from a Saif Ali Khan movie. Once a financier to film producers (👀 Bollywood nexus alert), the company now invests in securities.
But here’s the real drama:
- ₹0.32 Cr sales in FY24
- ₹0.63 Cr profit in FY25
- ₹249 Cr market cap
- 82% of promoter holding pledged or encumbered
- Stock up 273% from its ₹31 low
Sounds like the plot of Scam 1992 Season 2, doesn’t it?
3. 📦 WTF Do They Even Do? – Business Model
Milgrey’s website and filings give us this:
- 📈 Invests in listed/unlisted shares and securities (basically a glorified Demat account)
- 🔁 Short-term and long-term trading
- 🎥 Used to lend to film producers – a line that still haunts their description
No active lending. No AUM. No NBFC license per current disclosures. No real operations.
So what do they really do?
👉 Exist on BSE, and maybe trade in and out of stocks themselves.
4. 📊 Financials – P&L of a Dormant Account
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | RoE % | EPS ₹ |
|---|---|---|---|---|---|
| FY21 | ₹0.08 | ₹-0.01 | -12.5% | -0.98% | -0.05 |
| FY22 | ₹0.09 | ₹0.01 | 11.1% | 0.73% | 0.05 |
| FY23 | ₹0.00 | ₹-0.13 | NA | -0.75% | -0.65 |
| FY24 | ₹0.32 | ₹0.02 | 25% | 0.17% | 0.01 |
| FY25 | ₹0.00 | ₹0.63 | NA | 1.83% | 0.29 |
📌 FY25 profit came entirely from other income
📌 No actual revenue — just investment gains
📌 RoE of 1.83% despite 7.3x Price/Book? That’s delusional.
5. 💸 Valuation – No Maths, Only Mania
- P/E: 395x 😳
- P/B: 7.28x on Book Value ₹15.9
- Sales: ₹0 Cr in FY25
- Fair Value Estimate:
- PAT of ₹0.63 Cr × 20 P/E = ₹12.6 Cr
- Add 10% control premium = ₹13.9 Cr
- Fair Value/share = ₹6.4
⚠️ EduInvesting FV Range: ₹6–₹9/share
💥 CMP ₹116 = ~13x overvalued
6. 🧨 What’s Cooking – Spoiler Alert: Nothing Legal
- 📉 Promoter stake down from 52.8% → 19.47% in 2 years
- 🔒 82% of what remains is pledged
- 📈 Price went from ₹31 → ₹116 in 12 months
- 🕵️♂️ No dividend, no real operations, no filings of substance
- 🧑⚖️ Appointed new Company Secretary in June 2025
- 📜 Clean audit, but only because there’s nothing to audit
🎣 Looks like a pump-and-dump shell waiting for a “reverse merger” event.
7. 📉 Balance Sheet – A ₹250 Cr Company with ₹0 Assets?
| FY | Equity ₹ Cr | Reserves ₹ Cr | Borrowings ₹ Cr | Assets ₹ Cr |
|---|---|---|---|---|
| FY21 | ₹1.99 | ₹-1.09 | ₹0.12 | ₹1.04 |
| FY23 | ₹1.99 | ₹29.62 | ₹1.5 | ₹33.14 |
| FY25 | ₹21.5 | ₹12.68 | ₹29.13 | ₹63.36 |
🧨 Equity base was inflated 10x recently — likely via preferential allotment
🧾 Total assets: ₹63 Cr, yet market cap is ₹249 Cr
📉 46% of the balance sheet is borrowings — for what?
8. 💵 Cash Flow – Just Vibes, No Flow
| Year | CFO ₹ Cr | FCF ₹ Cr |
|---|---|---|
| FY23 | -₹31.54 | 🚨 |
| FY24 | -₹29.36 | 🚨 |
| FY25 | -₹11.16 | 🚨 |
📉 Zero positive cash flows for 3 years
🚫 No capex, no OCF, no investing — just fundraising + survival
9. 📐 Ratios – Red Flags Galore
- ROE: 1.83% – Laughable
- ROCE: 1.33% – Below FD returns
- Debtor Days: 250+ (for what debtors???)
- P/E: 395 → most overvalued stock on BSE under ₹300 Cr
- Promoter Holding: 19.5%
- Pledged Holding: 82% – that’s near-total leverage
🛑 This is not investing. This is gambling.
10. 📈 P&L Breakdown – 100% Mirage
FY25 Net Profit = ₹0.63 Cr
Out of which:
- ₹0 from core business
- ₹0.94 Cr as Other Income
- ₹0.31 Cr in expenses
- ₹0.16 Cr interest
Nothing operational. Just investment gains marked as profit.
11. 🔍 Peer Comparison – They Don’t Belong Here
| Company | Sales ₹ Cr | PAT ₹ Cr | RoE % | CMP/BV |
|---|---|---|---|---|
| Milgrey | ₹0.0 | ₹0.63 | 1.83 | 7.28 |
| NESCO | ₹732 | ₹375 | 15.2 | 3.2 |
| CMS Info | ₹2,424 | ₹372 | 17.7 | 3.7 |
| Nirlon | ₹636 | ₹218 | 59.7 | 12.6 |
🧠 Milgrey doesn’t even generate revenue, yet trades at higher P/B than CMS and NESCO.
12. 👥 Shareholding – Promoter Vanishing Act
- 📉 From 52.8% to 19.5% in 2 years
- 🔒 82% of promoter shares pledged
- 🧑🤝🧑 Public holding now 80.5%
- 🧼 No institutional investors
- 📈 Number of shareholders up 10x in 1 year — classic retail frenzy
👻 Promoters dumping? We think so.
13. 🧑⚖️ EduInvesting Verdict™
Milgrey is not a business. It’s a listed demat account with a backstory.
It shows up on Screener because it’s up 273% from lows. But under the hood?
- No revenue
- No operations
- Ballooned market cap
- Laughable ratios
- Suspect pledging
⚠️ Fair Value: ₹6–₹9/share
🎭 Current Valuation: Bollywood Fiction
🚨 Unless this turns into a reverse merger shell, there is zero intrinsic value. This is retail hopium.
💡 You want finance exposure? Try Bajaj Fin or Cholamandalam.
You want drama? Buy Netflix.
Tags: Milgrey Finance, Pledged Shares, Microcap Red Flags, Pump and Dump, Bollywood Finance, P/E Bubble, Reverse Merger Shell, EduInvesting Analysis
