Rajasthan Gases Ltd: Turnaround Tandoor or Another Hot Air Balloon?
1. At a Glance
Once a barely-breathing microcap, Rajasthan Gases is now roaring back with profits after nearly a decade in financial coma. Its FY25 EPS is finally positive, ROCE jumped to 24.8%, and the open offer drama has lit up investor screens. But is this a genuine turnaround or just a gas pump fueled by speculative heat?
2. Introduction with Hook
If Rajasthan Gases were a Bollywood character, it’d be that sidekick who silently watches the film until the last scene—then lands the knockout punch.
Net profit in FY25: ₹7 Cr (after years of red ink)
ROCE: 24.8% (from -8.1% in FY23)
EPS: ₹0.91 (FY25), after 10+ years of negative or sub-₹1 earnings Also: An open offer emerged out of nowhere in early 2024. Coincidence? We don’t believe in those here.
3. Business Model (WTF Do They Even Do?)
Formed in 1993, Rajasthan Gases was historically engaged in the filling, transport, and distribution of industrial gases. But somewhere along the way, they:
Lost operational focus
Went dormant
Then emerged like a phoenix with dreams of being a warehouse and real estate developer
Now it says it’s in “Trading and Developers” with plans to set up a 10,000 sq. ft. warehouse. From gases to godowns—because why not?
