1. At a Glance
Stratmont Industries – the company that trades coking coal and LAM coke like it’s Bitcoin, except slower and smokier. Market cap barely ₹234 Cr, but the stock trades at a P/E hotter than your chai (172x). Profits? Yes, but you’ll need a microscope.
2. Introduction with Hook
Imagine a matchstick trying to light a wet log—that’s Stratmont. They sell low ash metallurgical coke, a fancy term for coal that doesn’t give you black lung (as fast). Revenue jumped 39% YoY to ₹38.5 Cr in Q1, but net profit? A laughable ₹0.68 Cr. Margin tighter than your jeans post-Diwali.
3. Business Model (WTF Do They Even Do?)
Basically, Stratmont trades coking coal and manufactures LAM coke, which steelmakers love like kids love Maggi. They buy coal, tweak it a bit, and sell it at a markup. No secret sauce, just burning stuff and billing clients.
4. Financials Overview
- Q1 FY26 Revenue: ₹38.5 Cr (YoY +89%)
- Net Profit: ₹0.68 Cr (NP margin 1.7%)
- TTM Sales: ₹126 Cr, Profit ₹1 Cr
Margins? More fragile than your grandma’s porcelain. ROE: 6%. ROCE: 6.6%. Debt isn’t Titanic-level, but working capital days scream 149 – cash stuck longer than your stuck WhatsApp backup.
5. Valuation
- P/E: 172x – absurd
- Book Value: ₹10.4; CMP is 7.9x BV – spicy!
- Fair Value Range: ₹35–₹55
Paying this price? You probably also buy popcorn at PVR without blinking.
6. What’s Cooking – News, Triggers, Drama
- Multiple MD musical chairs – 3 MDs in 2 years.
- Preferential allotments and loan-to-equity conversions in 2023–24.
- FIIs suddenly hold 28% (why? maybe they’re bored).
Plot twists? Plenty. Execution clarity? LOL.
7. Balance Sheet
| ₹ Cr | Mar 24 | Mar 25 |
|---|---|---|
| Assets | 56 | 61 |
| Liabilities | 56 | 61 |
| Net Worth | 5 | 29 |
| Borrowings | 28 | 10 |
Debt reduced, but reserves still skinny. “Fit, but not gym-fit.”
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops CF | 2 | -21 | -23 |
| Inv CF | -6 | -1 | -3 |
| Fin CF | 7 | 21 | 26 |
Operating cash flow is the broke cousin at the wedding – always negative, always borrowing for drinks.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 6% |
| ROCE | 7% |
| D/E | 0.34 |
| PAT Margin | 3% |
| P/E | 172x |
ROCE is lukewarm, P/E is insanity. Clearly, market sentiment is doing yoga on the rooftop.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 53 | 87 | 93 |
| EBITDA | 1 | 2 | 3 |
| PAT | 1 | 1 | 1 |
Revenue grows, PAT crawls. Investor patience? Tested.
11. Peer Comparison
| Company | P/E | ROE | CMP/BV |
|---|---|---|---|
| Redington | 19x | 14% | 2.6x |
| MSTC | 18x | 24% | 4.8x |
| BN Holdings | 138x | 9% | 6.9x |
| Stratmont | 172x | 6% | 7.9x |
Looks like the drunkest guest at a finance wedding.
12. Miscellaneous – Shareholding, Promoters
Promoters hold 67.6%, FIIs 28%. Public got kicked to 4%. Clearly, someone’s playing high-stakes poker here.
13. EduInvesting Verdict™
Stratmont is that small-town guy wearing Gucci – looks fancy, wallet empty. Growth potential exists but profitability is still a myth. Keep this one on your watchlist, but don’t expect business-class legroom.
Written by EduInvesting Team | 26 July 2025
Tags: Stratmont Industries, Coke Trading, High P/E Stocks, Small Cap Analysis, EduInvesting Premium
