1. At a Glance – Coal, Coke & Corporate Drama
₹196 crore market cap. ₹68.9 share price. P/E of 71.2. ROE 7.8%. ROCE 7.15%. Debt ₹18.8 crore. Debtor days 181. Working capital days 109.
And then — boom — Q3 FY26 net profit up 1,470% YoY.
Stratmont Industries just posted December 2025 quarterly sales of ₹41.76 crore with PAT of ₹1.57 crore. That’s an 89.82% jump in sales and a ridiculous 1,470% jump in profit compared to the same quarter last year.
Sounds like a multibagger loading? Or just a tiny base effect doing CrossFit?
Stock is down 8% in one year, but up 68% over 3 years. Dividend? ₹0.10 per share interim declared in Feb 2026. Yes, 10 paisa. Generous.
This is a coal and LAM coke player with a 36,000 MTPA plant in Kachchh. They trade, they manufacture, and they also apparently love changing management.
Let’s open the furnace and see what’s really burning inside.
2. Introduction – From Sleepy Microcap to Suddenly Hyperactive
Stratmont Industries was incorporated in 1984. For decades, it looked like one of those companies that exist but don’t disturb anyone.
Then post FY22, something changed.
Sales went from ₹53 crore (Mar 2023) to ₹93 crore (Mar 2025) and TTM ₹152 crore. Profit growth TTM shows 171%. Sales CAGR 5-year: 192%.
But margins? Operating margin last year: 4.09%. Net margin last year: 1.44%.
So this isn’t some high-margin niche chemical genius. This is a low-margin trading and coke manufacturing business.
Here’s the twist: In FY21, 85% revenue came from hiring income and 15% from traded goods. Today, they are talking backward integration into mining and forward integration into steel and ferro alloys.
Mining? Steel? Power plant in Gujarat?
Ambition level: Reliance Industries.
Balance sheet level: “Bhai thoda ruk.”
Also, management changes have been happening like IPL team transfers. Managing Directors resigning and getting appointed. Company Secretaries joining and leaving within a week. Directors reshuffled.
Question is simple: Is this transformation story or turbulence story?
3. Business Model – WTF Do They Even Do?
Let’s simplify this for your lazy investor brain.
Stratmont does two primary things:
- Trades coking coal.
- Manufactures low ash metallurgical (LAM) coke.
LAM coke is used in steel plants, ferro alloys, pig iron, chemicals, soda ash, zinc units. Basically, if something needs high temperature and uniform heating, LAM coke is invited.
They have one manufacturing unit in Kachchh with capacity of 36,000 metric tons per annum.
Distribution? Through brokers, distributors, and direct supply.
Now here’s the interesting part: earlier revenue mix was heavily tilted toward hiring income. Now quarterly sales are regularly in ₹30–₹40 crore range.
Are they becoming a serious trading player?
Or are they just scaling working capital aggressively?
Because when debtor days jump to 181 days and working capital days go from 28 to 109… that means money is stuck somewhere.
If you sell coal but customers pay after
